1) Q. How long do I have to submit comments?
A. Until December 31, 2007.
2) Q. What is the proposed date for the benefit change for active faculty and staff?
A. The proposed benefit change date is July 1, 2009.
3) Q. Is this really a proposed benefit change or is this change set in stone?
A. The proposed benefit change is just that—proposed. We want to give you time to understand the proposal and offer thoughtful comments and suggestions. Then in January, we will carefully consider all submissions. Only after that will final benefit changes be determined.
4) Q. When is the first time I can qualify to retire with any retiree health insurance benefit?
A. You must be at least age 55 and have at least 10 consecutive years of benefits-eligible service to qualify for Dartmouth’s retiree health benefits.
5) Q. What is the “Rule of 75”?
A. For an employee who meets the 55/10 minimum requirement, if her age plus years of benefits-eligible service add up to at least 75 she is eligible to receive a full College subsidy for her own health insurance premiums (there is a small additional charge for the Preferred Blue plan) in retirement.
6) Q. What happens to the “Rule of 75” under the proposed retiree health benefit changes?
A. The Rule of 75 will not exist after the retiree health benefit changes take effect in 2009 (proposed effect date: July 1, 2009). Thereafter, premiums will be paid on a cost-sharing model. Under the proposed plan, your College subsidy will be your combined age plus years of benefits-eligible service on July 1, 2009.
7) Q. I meet the Rule of 75 requirements or will meet them by June 30, 2009. What is the last day I may retire and receive fully subsidized (Blue Choice) retiree health insurance premiums?
A. Under the proposed retiree health benefit changes, the current plan and its Rule of 75 will remain in effect through June 30, 2009. On July 1, 2009 and after, the maximum possible health insurance premium subsidy will be 85% of the premium cost. If you plan to retire before July 1, 2009, please contact the Benefits office two months prior to your retirement so that you can complete all necessary paperwork.
8) Q. Does qualifying for retiree health benefits mean I’m entitled to take distributions from my retirement accounts without penalty?
A. No. Retiree health benefits and your retirement savings plans are two separate things. Regardless of when you retire, you must follow IRS rules on the proper timing of retirement fund distributions (withdrawals). Consult a tax professional or your retirement company (Calvert, Fidelity, TIAA-CREF) before taking a distribution.
9) Q. If I find a better deal on health insurance in retirement, may I leave the Dartmouth plan? May I come back to the plan later?
A. You may leave the Dartmouth health plan at any time. You may re-enroll in the plan during any annual Open Enrollment period.
10) Q. What is a retirement projection and how do I get one?
A. Retirement projections illustrate estimated monthly incomes and the lump sum value in a retirement plan as of a certain date. Projections are only available for employees who participated in the College's Defined Benefit Retirement Plan. Employees with balances in the Defined Benefit plan do not need to call the Benefits office to request a projection. They will receive a projection when the final retiree benefit changes are announced in early 2008.
11) Q. I am a long-time faculty member and I want to retire under the faculty's Flexible Retirement Option (FRO). When must I retire to get the full College subsidy available under the current plan?
A. Any eligible faculty member who signs up for FRO retirement during the annual spring sign-up period in 2009 will be eligible to receive the current College premium subsidy benefit when she separates from the College in 2012. Anyone who signs up for FRO after July 1, 2009 will receive the premium subsidy outlined in the proposed plan.
12) Q. I am not sure I’m ready to retire. What should I do?
A. Meet with your financial advisor if you have one. Or schedule an individual session with a representative from Calvert, Fidelity or TIAA-CREF. They are on campus regularly. Check the Human Resources website for appointment scheduling information.
New as of 11/19/07:
13) Q. Is there any plan to change the 7% special benefit?
A. No.
14) Q. How do I learn more about Medicare benefits?
A. The Medicare & You publication (see link on the “Other Resources” page of this website) offers lots of helpful information for those interested in learning more.
15) Q. Right now, on average, a regular, benefits-eligible employee’s benefits equal what percentage of his salary?
A. 38.5%
16) Q. Isn’t the hospital (DHMC) a department of Dartmouth College?
A. No. DHMC is a separate entity with different policies, practices, and employee benefits.
17) Q. I haven’t taken the College’s health insurance for several years. Am I entitled to join the plan after retirement?
A. Both active benefits-eligible employees and those retirees who were in benefits-eligible positions at the time of retirement are eligible to take Dartmouth health insurance at any annual Open Enrollment or at the time of a “qualifying event”—before or after retirement.
18) Q. Are the proposed benefit changes different for staff than for faculty?
A. No. The proposed retiree health plan changes are the same for both faculty and staff.
19) Q. Is there any plan to create an Early Retirement Option for staff similar to the Flexible Retirement Option currently in place for faculty?
A. There currently is no Early Retirement Option for staff under consideration.
20) Q. How will age and years of service be counted on July 1, 2009?
A. As the plan is currently proposed, an employee’s full age plus full years of service on July 1, 2009 will be that employee’s subsidy percentage (at the time she retires, having reached at least age 55 with at least 10 consecutive years of service). Currently, under the Rule of 75, age (including months) plus years of service (including months) are added to determine eligibility. Under the proposed plan change, that practice of including months will cease.
21) Q. Will HR have more staff to help those of us considering retirement?
A. Yes, in early winter 2008, after the final plan changes are announced, HR will have additional staff ready to counsel employees considering retirement. Until then, HR only has the capacity to assist those employees who know they will be retiring in the next 2-3 months.
New as of 12/11/07:
22) Q. I want to estimate how much money I’ll need to save in order to have enough to cover my health care costs in retirement. How can I do that?
A. Your retirement company representative is available to help you estimate how much you will need to save to cover your expenses in retirement, including health care. To schedule an on-campus appointment with the Fidelity representative, please call 800-642-7131. For an on-campus appointment with the TIAA-CREF representative, please log on to www.tiaa-cref.org/moc or call (800) 842-2004. You do not need to be a participant in a company’s plan in order to make an appointment with its representative. Because of the College’s Winter Break, our representatives will next be on campus in January.
23) Q. How many Dartmouth employees currently meet the Rule of 75?
A. Approximately 500.
