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.