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.

1. Early Retirement Medical Insurance. Any employee who is covered under Furman’s group medical plan at the time of his or her retirement and who meets the eligibility requirements describe in Section C(1) below may elect to enroll in the Retiree Plan.

2. Early Retirement Medical Insurance Assistance. Any employee who is covered under Furman’s group medical plan at the time of his or her retirement and who meets the eligibility requirements describe in Section C(2) below, 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 or an entitlement.

1. To be eligible for the Early Retirement Medical Insurance, the employee must be at least 55 years old, have worked for at least ten continuous years at Furman University immediately prior to the proposed retirement date and the sum of the employee’s age and years of service must be equal to or greater than 75.

Notwithstanding the foregoing, Effective March 1, 2011, any employee who satisfies the following requirements shall also be eligible for the Early Retirement Medical Insurance:

a. Is involuntarily terminated due to the elimination of his or her job between March 1, 2011 and December 31, 2011,

b. Is within six months of his or her 55th birthday at the time of the involuntary termination; and

c. Has worked for at least ten continuous years at Furman University immediately prior to the date of the involuntary termination, and the sum of the employee’s age and years of service is equal to or greater than 75.

2. To be eligible for the Early Retirement Medical Insurance Assistance, the employee must be at least 55 years old, have worked for at least ten continuous years at Furman University immediately prior to the proposed retirement date and the sum of the employee’s 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.

3. Employees eligible for the Early Retirement Medical Insurance may continue their medical insurance coverage at the same level (i.e., employee-only, employee-plus-one or family). However, if they are also eligible for the Early Retirement Medical Insurance Assistance, the Medical Insurance Assistance will be:

a. For single employees – based on Furman’s medical insurance contribution for employee-only coverage.

b. For employees with spouses or domestic partners – based on Furman’s medical insurance contribution for employee-only coverage; unless the spouse or domestic partner provides certification that he/she is not eligible for medical coverage from another group health plan (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 3(b) above.

4. Employees will notify their department head and Human Resources 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 Human Resources Office for Early Retirement Medical Insurance Assistance, if eligible.

Notwithstanding the foregoing, employees who are eligible for Early Retirement Medical Insurance as a result of an involuntary termination for reasons other than misconduct shall not be required to notify their department head and Human Resources of their decision to retire by January of the year they intend to retire. However, they will be required to make a formal written request to the Human Resources Office for Early Retirement Medical Insurance and Early Retirement Medical Insurance Assistance, if eligible, at the time of their termination.

5. 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.

6. The approved Early Retirement 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 will be paid by Furman for the number of months until eligible for Medicare (up to 24 months).

7. The employee will complete paperwork in the Human Resources Office to enroll in the Retiree Plan, effective the first day of the month after the retirement date.

8. The retiree will receive an invoice from the Human Resources 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.

9. 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.

10. When eligible for Medicare, the retiree may elect to continue medical coverage under the Retiree Plan and will be responsible for paying the full premium for the Retiree Plan to retain coverage.

11. The retiree and any dependents that are covered under the Retiree Plan must enroll in Medicare Parts A, B and D as soon as they are eligible to enroll in Medicare.

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