Furman University has allowed eligible early retirees without Medicare to stay on the group medical plan as long as they pay the full premium. The cost of medical premiums has increased significantly and often becomes a deterrent to retiring prior to being eligible for Medicare.

Any staff member who qualifies for early retirement, is within five years of eligibility for Medicare and has medical insurance coverage with Furman, will be eligible for early retirement medical insurance assistance for up to a maximum of 24 months. This option is made available at the discretion of the administration and is not considered a fringe benefit nor an entitlement.

1. To be eligible for the medical insurance assistance option, the employee must be at least 55 years old, have worked for at least ten continuous years at Furman University prior to the proposed retirement date and the sum of the age and years of service must be equal to or greater than 75. The employee must also be within five years of eligibility for Medicare coverage.

2. Employees may continue their medical insurance coverage at the same level (i.e. employee-only, employee-plus-one or family), however, the medical insurance assistance will be:

a.       For single employees - based on Furmans medical insurance contribution for employee-only coverage.

b.      For employees with spouses - based on Furmans medical insurance contribution for employee-only coverage; unless the spouse provides certification that he/she is not eligible for medical coverage from another insurance company (i.e. at their place of employment).  If this certification is provided, the payment will be based on employee-plus-one coverage.

c.       For employees with families - the payment will be the same as 2b above.

3.  Employees will notify their department head and Personnel in writing of the decision to retire by January of the year they intend to retire.  The employee will then make a formal written request to the Personnel Office for Early Retirement Medical Insurance Assistance, if eligible.

4.  Department Heads will be responsible for ensuring funding for approved medical insurance assistance payments by making new hire decisions that generate salary and benefit savings and/or by designating expense funds to offset the costs.

5.  The approved medical insurance assistance payment will be calculated as follows:

a.       As of the retirement date, the number of months until the employee is eligible for Medicare will be computed, up to a maximum of 24 months.

b.      The current monthly medical insurance contribution by Furman times the number of months until eligible for Medicare (up to 24 months) will be the gross amount paid to the employee at retirement.  At the discretion of Furman University, the payment will be either a one-time payment or divided into two payments.

6.      The employee will complete paperwork in the Personnel Office to move into the retiree category for medical insurance, effective the first day of the month after the retirement date.

7.  The retiree will receive an invoice from the Personnel Office each quarter for the amount of the total premium due and will be required to pay the full amount to Furman University to retain coverage.

8.  If the retiree drops coverage prior to getting Medicare coverage, Furman University reserves the right to request a refund of the amount equal to the medical insurance assistance amount paid, prorated based on the number of months until eligible for Medicare.

9.  When eligible for Medicare, if the retiree chooses to continue medical coverage with Furman, the retiree will complete paperwork in the Personnel Office to move into the Medicare Supplement Plan and will be responsible for paying the full premium for the supplemental plan to retain coverage.

..........