| Chuck Hernandez, Secretary-Treasurer |
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| Chuck Hernandez, Secretary-Treasurer |
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January 24, 2008
Brothers and Sisters,
Recently, there has been a lot of talk concerning retiree medical, which is commonly known as pre-funding. I’d like to try and clear up some of the questions that have come to my attention.
1) ELIGIBILITY. To be eligible for retiree medical you had to have been pre-funding for Ten (10) consecutive years up to your retirement day.
2) LENGTH OF COVERAGE. Retiree medical is your primary medical insurance from the age of 55 to 65. Or if you are eligible earlier for Medicare. Then it becomes secondary to Medicare.
3) OPTIONS. There are two options when you retire, the first is you can stay with the pre-funding and that gives you $300,000 coverage, and when you reach 65 it is reduced to $50,000 in coverage. The second is called retiree point of service (RPOS), you can opt for this care by cashing in your pre-funding money. The current premiums are $80 per person you are insuring. The limits on this policy are $1,000,000 until you are 65, then it reverts to the retiree medical and the $50,000 limit. However you still have to keep paying the $80 premium to keep your coverage, especially if you have the supplemental insurance. You still have to pre-fund for the ten(10) consecutive years before you retire to be eligible. Refer to the jetnet in benefits for more details.
4) SUPPLEMENTAL INSURANCE. For those of you who have it, it adds an extra $500,000 of coverage to your policy. When you retire you will be billed $60 a year, ($5 a month).
If you have any questions concerning this or any other matter concerning benefits or retirement , feel free to contact me at 305-874-2788 Monday thru Friday.
Fraternally,
Chuck Hernandez
Secretary Treasurer
TWU Local 568
MIA TPA FLL
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