CLEVELAND, January 2 -- When President Bush signed the Railroad
Retirement reform legislation into law on December 21, thousands of
railroaders became eligible to retire at age 60 with 30 years of
service -- and with no reduction in their annuity.
The
following information has been provided by United Healthcare to help
answer common questions posed by potential retirees. After reviewing
the following, members who still have questions can contact United
Healthcare directly at: (800) 842-5252.
Changes to the
Railroad Employees National Early Retirement Major Medical Benefit
Plan (GA-46000)
Recent changes to the Railroad Retirement
Act will allow employees who are 60 years old with 30 or more years
of service to retire at age 60 with no reduction in their RRB
annuity.
An important consideration for anyone thinking
about retirement is health coverage after you retire.
New
Eligibility Rules
Along with the changes in the Railroad
Retirement Act, the labor organizations representing railroad
employees have negotiated a change in the eligibility rules under
the Railroad Employees National Early Retirement Major Medical
Benefit Plan (GA-46000), administered by United Healthcare.
Prior to January 1, 2002, GA-46000 required an employee to
retire on or after reaching age 61. After this date, you can retire
at age 60 and will be eligible for coverage under this plan if you
meet the following eligibility requirements:
For age
annuitants:
You apply for a 60/30 annuity for which you are eligible:
- on or after the date you reach age 60; or
- anytime during the three months before your 60th birthday,
provided you continue working into the month before the month in
which you turn age 60;
- on the day before you apply for your annuity, you must be
covered (other than COBRA) under the Federal Employees National
Health and Welfare Plan.
For disability annuitants:
- You have a current connection with the railroad industry;
- You have applied for a disability annuity to which you are
entitled;
- You are covered under the Railroad Employees National Health and
Welfare Plan (other than by COBRA) on the day before the latest of
the following dates:
- The date you reach 60;
- The date you became disabled;
- The date your railroad service equals 30
years.
In addition to the changes in eligibility
rules, the lifetime maximum under GA-46000 will be adjusted each
year by the medical cost component of the Consumer Price Index. The
Lifetime Maximum for 2002 will be $79,000.
If you retire and
are eligible for GA-46000, you can also purchase supplemental
coverage under GA-23111, Plan E. Generally, Plan E pays 70% of the
expenses not paid under GA-46000 and has a lifetime maximum of
$200,000.
Enrollment is Necessary
When you
retire, your railroad will not report you to United Healthcare as a
retiree eligible for GA-46000. You must enroll yourself and your
family with United Healthcare. You can do this in two ways:
You can purchase GA-23111, Plan E. Your eligibility for
GA-46000 will be verified when your enrollment for that coverage is
processed. ID cards for both GA-46000 and GA-23111 will be sent to
you. A booklet explaining the Plan E benefits and an enrollment form
can be obtained by calling United Healthcare.
You can
complete and return the "Retiree and Dependent Information" form
found in the center of the GA-46000 employee booklet. Your
eligibility will be verified and a GA-46000 ID card will be sent to
you. You can obtain a GA-46000 booklet from your employer or union
representative.
If you have any questions about your
eligibility for GA-46000 or the benefits provided under the plan,
call United Healthcare at (800) 842-5252.