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The decision to retire is a very personal one and is based
on many factors, including your family, career, and
financial circumstances; eligibility for governmental as
well as Barnard benefit programs; and your health. We
hope that the information presented below will assist you
with planning for your retirement.
The following is only a brief summary; more complete
information can be obtained from
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The Human Resources Office,
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Benefit plan documents, and
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The links we have provided to informative web sites important to
retirees.
As
you plan for your retirement, and review these materials, please
remember to consider these key elements:
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Social security benefits remain a very important part of most
people’s retirement income, so it is wise to consider how
those benefits can affect your decision to retire.
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You should become familiar with the provisions of Barnard’s
retirement plan regarding benefit payouts.
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If you have a personal financial planner, plan to consult with that
individual well in advance of your retirement date to make
certain that you understand your financial needs and
options.
When Can I Retire?
Full Retirement Age:
Until recently, age 65 was considered the “normal retirement
age,” that is, 65 was the age at which you could begin
collecting a full social security benefit and enroll in
Medicare.
You
may still enroll in Medicare at age 65.
However, your full social security benefit is now available only
if you have reached your “full retirement age,” or in the
parlance of social security, your “FRA.”
If
you were born in 1937 or earlier, your FRA is 65.
If
you were born from 1938 on, your FRA is determined by a schedule
based on your birth year. Depending on your birth year, your
full retirement age may be anywhere between 65 and 67 years of
age. Your full social security benefit will be reduced for each
month you begin collecting your benefit before reaching your FRA.
Conversely, you would be entitled to a greater social security
benefit if you retire between your FRA and age 70, when you must
begin to collect your social security.
Similarly, your Barnard retirement plan has provisions governing
when and how you may start your benefits. We suggest strongly
that you speak with a counselor at the company holding your
retirement investments regarding the timing of retirement
withdrawals. Contact information for both TIAA-CREF and
Fidelity Investments follows.
Early Retirement:
You
may be considering retiring prior to age 65. You may
certainly do so, but remember that while you can begin
collecting your social security benefit as early as age 62, if
you do, your benefit will be permanently reduced because you are
collecting in advance of reaching your FRA. Also, your benefit
will be further reduced if you continue to work, earn money over
a certain annual threshold amount and collect your social
security benefit prior to reaching your FRA. Keep in mind that
you will also need to understand how your benefits would be paid
out from your Barnard retirement plan if you retire early. In
addition, a decision to take early retirement will have an
impact on the cost of your medical benefits until you reach your
FRA. Please see the retiree health section of this document for
further information.
Phased Retirement:
Barnard administrative staff may wish to explore the possibility
of phasing into retirement. Phased retirements can be
beneficial to both you and to the College. A phased retirement
affords you an opportunity to retire from your work at the
College more gradually than traditional retirement and gives
your department time to hire and train a replacement or
restructure if necessary.
A
phased retirement could be accomplished by a mutual agreement
among you, your supervisor and Human Resources. These
agreements are subject to the operational needs of the College
and are negotiated on a case-by-case basis. A phased retirement
requires a written Agreement of Intent to Retire that
specifies: (1) a planned decrease in work load and
compensation, and (2) the intent to retire as of a specific
date, generally within two years.
A
phased retirement agreement could allow you to retain full
employee benefits and, depending on your age, you may be able to
supplement any decrease in your pay with monies from your
Barnard retirement plan. These monies could be withdrawn
without incurring a tax penalty when appropriate arrangements
are made with the investment company holding your retirement
account(s). If you are interested in considering phased
retirement, you should speak with the Human Resources
Department.
Faculty who wish to enter into a pre-retirement plan should
contact the Provost. Accommodations are possible regarding
waiving the provision about a return to teaching after an earned
paid leave (e.g. a sabbatical) and converting time toward
eligibility for a paid leave into a temporary reduction of
teaching load before retirement.
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Enrolling in Government Retirement Benefits
This information on government benefits is by necessity
brief and is subject to change. These matters can be
quite complex and are dependent on your individual
circumstances. Please consult the Social Security
Administration directly at the phone number and/or web
address provided below for complete information. If you are
working with a financial advisor to plan for your
retirement, it is recommended that you include medical care
in your discussions.
Social Security and Medicare Part A:
Contact the Social Security Administration by phone or online to
review the monthly benefit for which you will be eligible on a
given retirement date. The Social Security web site has a handy
calculator that will assist you in determining the benefit for
which you would be eligible, or you can discuss this with a
representative on the phone. Social Security representatives
are well trained and helpful. It is not an intimidating
process!
Social Security will also assist you with enrollment in Medicare
Part A (Hospital Coverage). Keep in mind that you are
eligible for Medicare Part A on the first of the month in which
you reach your 65th birthday. It is easy to
enroll in Medicare Part A on the telephone, and it is
recommended that you enroll when eligible, even if you are still
employed. There is no premium for Medicare Part A coverage.
You have paid for that through payroll deductions over the
course of your working years.
Medicare Part B (Medical Coverage):
If
you are covered currently by Barnard’s medical insurance for
active faculty and administrators, you will not need Medicare
Part B until you stop working and your current Barnard coverage
(for you and your spouse, if covered) ends. You will have an
Initial Enrollment Period (IEP) and, if you are working, a
Special Enrollment Period (SEP). We suggest strongly that you
speak with a Social Security representative about enrollment
dates that will apply in your particular circumstance as
enrollment periods can be somewhat complex and very specific.
If you are not covered by Barnard’s health insurance or other
private health insurance (through a spouse, for example) you
will also want to make certain you understand how to enroll in
Medicare Part B when you are eligible. As is the case for
Medicare Part A, eligibility for this benefit occurs on the
first of the month in which you reach your 65th
birthday, but please consult Social Security regarding specific
enrollment dates that apply in your circumstances.
Keep in mind that you will need Medicare Part B to enroll in
Barnard’s retiree health coverage, if you are eligible, or any
private retiree medical coverage you might be considering, such
as Medigap or Part D (prescription drug) coverage, so Part B
enrollment is very important.
There is a monthly charge for Medicare Part B. For the majority
of retirees, that premium will be $96.40 per month in 2009;
however, if your income in retirement will exceed certain income
levels, your premium could be higher. If you miss the Part B
enrollment deadline that applies to you, you could be subject to
financial penalties when you do enroll. It is very important
to enroll in Medicare Part B when you are eligible and your
employment circumstances warrant enrollment.
Here are the relevant telephone numbers and web sites for
further information about these important government benefits:
Social Security Administration – 1-800-772-1213
www.ssa.gov
Enrollment for both Social Security benefits and Medicare is
handled through the Social Security Administration.
Medicare – 1-800-MEDICARE
www.medicare.gov
Contact Medicare for general information and helpful online
search programs to identify types of private coverage, such as
Medicare Advantage, Medigap and Part D drug plans.
Lastly, the Human Resources Office can provide you with an
informative pamphlet about your Social Security and Medicare
rights and responsibilities. Request a copy of the pamphlet by
phoning or emailing Sollette Baker at x47345 (sbaker@barnard.edu)
or by phoning the HR Office at x42551.
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Information
About Barnard Retirement Benefits
In addition to the benefits to which you may be entitled from
the federal government, you may also be eligible to begin
drawing from the contributions that Barnard has made for you to
the Barnard College Retirement plan and those that you have set
aside through a Supplemental Retirement Account. Depending on
your age, years of service, and the health benefits coverage
that you have as an employee, you may also be eligible to
participate in Barnard’s postretirement medical program. The
details are provided below.
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Accessing Funds from the Barnard Retirement Plan
TIAA-CREF:
If
you have not already done so, we urge you to register on the
TIAA-CREF web site to secure regular access to your account(s).
The site provides several tools for your use in calculating
retirement financial scenarios. The web address is
www.tiaa-cref.org/barnard. In
addition, TIAA-CREF representatives visit campus regularly to
conduct retirement planning workshops and to provide one-on-one
counseling. You may also contact TIAA-CREF directly at
1-800-842-2776 to make an appointment with a counselor to
discuss retirement planning. There is no charge to you for this
service.
Fidelity Investments, Inc.:
As
of January 1, 2008, Barnard is also offering Fidelity as a
retirement investment option. You will have complete web access
to your fund accounts and planning materials through Fidelity’s
site. In addition, there are Fidelity workshops and one-on-one
counseling available on campus. Fidelity’s customer service
number is 1-800-343-0860 and their web address is
www.fidelity.com at work/barnard. As with TIAA-CREF, there
is no charge to you for Fidelity’s counseling services.
Look for mailings from Human Resources throughout the year with
information on campus workshops and private sessions for both
Fidelity and TIAA-CREF.
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Post-Retirement Medical Programs
In order to qualify for participation in any of Barnard’s
post-retirement medical programs, you (and your spouse, if
you want spousal coverage in retirement) must be enrolled in
Barnard’s health plan for active employees for at least a
year immediately preceding retirement. Retiree medical
coverage is not available to those active employees who have
been insured elsewhere while working at Barnard – for
example, through a spouse. The specific programs,
eligibility requirements, and related premiums are described
below:
Post-Retirement Medical Coverage for Retirees Aged 65 and over:
Retirees aged 65 and over who have worked at the College for 10
or more years, and are covered under Barnard’s active employee
plan at the time of their retirement are eligible to participate
in Barnard’s post-retirement medical programs.
Barnard provides medical coverage for retirees through a group
Medicare Advantage Plan from Oxford/United Healthcare, known as
Secure Horizons. For retirees who live outside of the plan’s
coverage region, as well as for those for whom the Secure
Horizons network is not ideal, the College provides a cash
subsidy to the individual retiree equal to the cost of Barnard’s
employer share of the Secure Horizons premium. The maximum
amount of Barnard College’s contribution toward an individual’s
retiree medical insurance is capped at $279.38 per month as per
the 1995 resolution by the Board of Trustees. If the premiums
for Secure Horizons were to rise above that amount, you would be
responsible for paying the difference between the subsidy and
the full premium.
The
options are described below:
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Secure
Horizons:
This plan replaces traditional Medicare and offers full,
comprehensive coverage including excellent prescription drug
coverage with no gap, or “doughnut hole,” (unlike standard
Medicare Part D prescription plans). In addition, the
Secure Horizons plan offers vision, hearing, dental care,
exercise and nutrition programs that are not available
through traditional Medicare. The plan is designed to offer
greater medical benefits if you use providers within the
Secure Horizons network. While an out-of-network benefit is
also available, the greater benefit is realized by staying
in-network. (Keep in mind that this is a group
Medicare Advantage plan for which Barnard pays a premium.
This plan offers benefits beyond those available with
individual enrollment in a Medicare Advantage plan.).
As a general reference for you,
the Barnard group Secure Horizons plan is very similar to
Oxford’s Plan A for active employees. While the Secure
Horizons plan does pay a lower benefit than Plan A for
services sought out-of-network, the Secure Horizons plan
offers the additional benefits of vision, hearing, dental
care, exercise and nutrition programs that our Oxford Plan A
does not offer. You may elect coverage for your spouse by
paying the full cost of this coverage.
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Opting out of Secure Horizons:
If you live and seek care within the Oxford service area but
want to stay with traditional Medicare and purchase your own
Medicare supplement plans (such as those offered by AARP)
you would receive a quarterly payment equal to the then
current premium of the Secure Horizons plan. Effective
January 2009, that subsidy is $734.76 per quarter ($244.92
monthly). Depending on the supplement plans you choose,
this subsidy will provide all or most of the cost of such
supplements. Once you have opted out of Secure
Horizons, you cannot re-enroll in the program.
If you will be residing outside of the Oxford
service area, you will receive the subsidy quarterly so that you
may purchase Medicare supplement plans or enroll in a Medicare
Advantage plan specific to your place of residence. There are
currently no national Medicare Advantage plans available that
Barnard can offer to its out-of-area retirees.
Post-retirement Medical Coverage for Retirees between the Ages of
62 and 65:
If
you are between age 62 and 65 when you retire, and you have
completed 10 years of service, you are eligible to participate
in Barnard’s post-retirement medical programs. From the time of
your retirement up until your 65th birthday, Barnard
will enroll you in its active employee plan or its closest
equivalent. You will be responsible for paying 50% of the
premium. Effective January 2009, half of the monthly premium
for Barnard’s active employee health coverage is $294.95 per
month. Once you turn 65, and become eligible for Medicare, you
must then switch to either of the retiree medical options
described above. If you choose not to participate in this
program when you retire, you will not be eligible to re-enter
Barnard’s postretirement medical program until you reach age 65
and have enrolled in Medicare Parts A & B.
Post-retirement Medical Coverage for Retirees under Age 62:
The College provides access to post-retirement medical coverage
for faculty and administrative employees who meet the “rule of
80”. At Barnard, this means that you must be between the ages
of 55 and 62, and have sufficient years of service that add up
to 80. For example, a 55 year old retiree would need 25 years
of service to qualify for post-retirement medical benefits.
From the time of your retirement until your 62nd
birthday, Barnard will enroll you in its active employee plan or
its closest equivalent. You will be responsible for paying 100%
of the premium. Effective January 2009, the monthly premium for
Barnard’s active employee health coverage is $589.90.When you
reach your 62nd birthday, your premium will be 50% of
the then current premium cost, as described above. If you
choose not to participate in this program when you retire, you
will not be eligible to re-enter Barnard’s postretirement
medical program until you reach age 65 and have enrolled in
Medicare Parts A & B.
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Benefits That End With Retirement
Please be aware that Aetna dental coverage, long-term
disability insurance, life insurance and accidental death &
dismemberment policies end when you retire. You may
continue your Aetna dental coverage under federal COBRA
regulations for up to 18 months after your retirement date,
if you pay the full cost of the coverage. If you are 65 or
older and you choose the Secure Horizons program, you will
receive limited dental coverage through that plan. The
Human Resources Office can supply you with information.
Please also note that benefits provided through voluntary
payroll deduction such as TransitChek and flexible spending
accounts will also end when you retire.
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Useful
Links for Retirees
www.ssa.gov – The official site of the Social Security
Administration.
www.medicare.gov – The official Medicare site.
www.tiaa-cref.org – Register on this site for access to your
accounts and for planning information.
www.fidelity.com – Register on this site for access to your
accounts and for planning information.
www.aarp.org – American Association of Retired Persons
www.aarphealthcare.com – Access to healthcare options
offered through the American Association of Retired Persons
www.n4a.org – The National Association of Area Agencies on
Aging
As with all Barnard’s benefit plans, those concerning
retirement are subject to formal plan documents, which are
available in the Human Resources Office. If there is a
discrepancy between the plan document and information
presented here, the plan document will govern. Barnard
reserves the right to alter or end benefit programs at any
time with or without prior notice.
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(REV.
01/07/09)
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