1. On The Road to Retirement
May 15, 2018

2. Retiree Classification
You have worked at Luther for at least 15 years
Ages 65 and older
You are eligible for certain benefits

3. What Benefits are Available If You are 65 or Older
Eligible for Humana Medicare Plan
Option to continue current dental plan for 18 months through Cobra
Option to port or convert current college-provided life insurance
Continued access to Legends/Regents Center, 10% discount at book shop, admission to athletic events, admission to Vesterheim Museum
Retirement Gift

4. Early Retiree Classification
You are retiring, and
Between 62 and 65 years of age
Have you worked at Luther for at least 15 years

5. Benefits Available If You Are 62 - 65
A special health care premium rate based on your current type (single, E+1, Family) and plan ($750 or high deductible plan)
Option to continue current dental plan
Option to port or convert current college-provided life insurance
Continued access to Legends/Regents Center, 10% discount at book shop, admission to athletic events, admission to Vesterheim Museum
Retirement Gift

6. What If I Am Under 62 or Have Less Than 15 Years of Service?
If you are under 62 years of age or less than 15 years of service, you can use CobraGuard for your current health and dental
Available for up to 18 months
The cost for health or dental is the Total Monthly Premium plus 2%
You will receive information from CobraGuard in the mail. You pay CobraGuard
Eligible for the same life insurance options

7. Health + Dental Care

8. Health Plans for Early Retirees

9. How Does The $750 Health Plan Work for Early Retirees?
Your health care premium would be 50% of the “Total Monthly Premium” for single coverage
For example, the 2018 Total Monthly Premium for the single coverage on the $750 PPO plan is $541 per month
Your portion would be $ per month in 2018

10. How Does The $750 Health Plan Work for Faculty?
If a faculty member has emeriti status, is between 62 – 65, and elects to participate in the Early Retirement Program
Salary tier level 1 monthly rates
If emeriti member under age 62
Salary tier level 2 rates
HR would be happy to explain further

11. What if I Want to Cover My Spouse ($750 PPO Plan)?
The additional amount to cover your spouse is as follows:
Assuming your spouse is not yet 65 years old and already on the plan
The Total Monthly Premium for E+1 coverage on the PPO plan is $965
HR would apply the 50% discount of $270.50
Your cost for E+1 coverage would be $694.50
($965 minus $ = $694.50)

12. How Does The High Deductible Plan Work?
Your health care premium would be 50% of the “Total Monthly Premium” for single coverage
For example, the 2018 Total Monthly Premium for the single coverage on the HDHP plan is $485 per month
Your portion would be $ per month in 2018

13. How Does The High Deductible Health Plan Work for Faculty?
If a faculty member has emeriti status, is between 62 – 65, and elects to participate in the Early Retirement Program
Salary tier level 1 monthly rates
If emeriti member under age 62
Salary tier level 2 rates
HR would be happy to explain further

14. What if I Want to Cover My Spouse (HDHP)?
The additional amount to cover your spouse is as follows:
Assuming your spouse is not yet 65 years old, so
The Total Monthly Premium for E+1 coverage on the HDHP plan is $860
HR would apply the 50% discount of $242.5
Your cost for E+1 coverage would be $617.50
($860 minus $242.5 = $617.50)

15. What if My Spouse is 65+ Even Though I’m Under 65?
Your spouse is eligible to participate in the college’s Humana Group Advantage Plan
They just need to have enrolled in parts A & B Medicare
The 2018 Luther group Humana premium for residents in NE Iowa is $86/month

16. What if I am over 65 at Retirement?
Make sure Medicare A & B are active the first of the month following your retirement
Complete the Humana enrollment form
The same is true for your spouse
This is also available for employees and spouses with less than 15 years of service at Luther!

17. When Can I Enroll in Humana If I Retired Between 62 – 65?
After retirement, you can enroll in the college’s Humana Group Advantage plan to be effective the 1st of the month in which you turn 65
The same is true for your spouse
This is also available for employees and spouses with less than 15 years of service at Luther

18. Delta Dental

19. Delta Dental 62-65 + Early Retiree Designation
If you are 62 – 65 and retiring early with at least 15 years of service you can continue your current dental coverage
Single coverage would be $32
Family coverage would be $73

20. Dental (65+ Or Not a “Retiree”)
You can continue your current dental coverage for up to 18 months through COBRA
CobraGuard manages our COBRA dental for non-retirees. CobraGuard receives a 2% fee for this service
Single coverage would be $ ($32 + 2%)
Family coverage would be $ ($73 + 2%)

21. HSAs and Flexible Spending Accounts

22. What if I am Contributing to an HSA and Medicare Eligible (65 or older)?
It is important to check with your financial advisor on when to stop contributions to your HSA
Most people become eligible for Medicare at age 65
Individuals that begin receiving Social Security benefits prior to age 65 are automatically enrolled in Medicare at age 65

23. If you are Medicare Eligible
Participation in any type of Medicare (A, B, C, D, Medicare Supplement) makes you ineligible to contribute to an HSA
However, you can continue to use your HSA for qualified medical expenses and for other expenses

24. You lose eligibility to contribute as of the first day of the month you turn 65 and enroll in Medicare
There are more rules if you are not enrolled in Medicare but your spouse is enrolled in Medicare A
HR can not “advise” people on Medicare and Social Security issues. It is always best to contact the Social Security office

25. Can I Contribute to My HSA?
Example: Sally turns 65 July 21 and enrolls in Medicare (and working). She is no longer eligible to contribute to her HSA as of July 1.
Her maximum contribution for that year would be 6/12 (she was eligible the first 6 months of the year) times the applicable federal limit (remember to include the catch-up)

26. Can I Remain HSA Eligible Past Age 65?
To be able to contribute to an HSA after age 65, you must not be enrolled in any part of Medicare. HSA rules make a distinction between being merely “eligible” for Medicare (keep HSA eligibility) and being “entitled” to or “enrolled” in Medicare (lose HSA eligibility)
You become enrolled in Medicare under Part A by filing an application or being approved automatically

27. Can I Remain HSA Eligible Past Age 65-continued
Social Security Administration automatically “enrolls” you in Medicare Part A when you begin collecting Social Security benefits. You would have to “decline” Part A to contribute to HSA
If you are receiving Social Security payments and are over 65, you are almost certainly enrolled in Part A

28. Social Security Administration
For more information you should contact either:
Your financial advisor
Social Security office in Decorah at 317 Washington Street, Decorah.
Social Security office in Waterloo at 3121 Greyhound Drive, Waterloo, IA
phone: (Call ahead!)

29. Flexible Spending Account (FSA)
Dates of service must normally be on or before your last date of employment in order to be eligible for FSA reimbursement
You have 90 days after your last date of employment to file reimbursement
There is an option to continue your flex account through December 31 with COBRA. Contact HR for more info

30. TIAA Your Retirement Account

31. TIAA Retirement Fund
Regardless of when you leave Luther – whether you are a retiree or not…
We encourage you to meet with a TIAA representative as needed
The TIAA representative comes to Luther approximately every two months and meets with individuals

32. TIAA Retirement Fund
The TIAA representative will be on campus May 23, 24, 25 for 2 ½ days to conduct individual consultations
A financial essentials workshop is being planned for Wednesday, May 23 in the morning
“Halfway There” - a mid-career retirement planning session 9 – 10 a.m.
CFL Recital Hall
Pre-register by calling or

33. Term Life Insurance

34. Term Life Insurance Everyone is eligible for this!
The term life insurance provided by the college will end 31 days after your termination date
HR will provide you with application forms and premium information for both “converting” and “porting” the insurance coverage
You may purchase any amount up to, but not exceeding the amount you had as an employee

35. Convert or Port? Conversion means:
You change your group term life coverage to an individual whole life policy, which builds cash value
You pay the premium at individual rates
The right to convert your policy is guaranteed by law
Your rate will be different when you convert the policy from a group to an individual policy
After that, you will pay the same premium for the life of the policy

36. Or,
Purchase a single-premium convertible one-year term life policy that must then be converted to whole life or dropped. If it is converted after the one year, it will be at your then-current age
You may purchase either of these options without having to provide evidence of insurability
You may purchase any amount up to, but not exceeding the amount you had as an employee

37. Portability means:
Take your group term life coverage with you and pay for it at group rates
The coverage does not build any cash value
This option is also called “porting” your coverage
Also, because life premiums are based on age - your premiums will automatically increase every 5 years after you port

38. Luther ID
Continued access as either a ‘retiree” or “early retiree”:
The Legends Fitness Center and Regents Center for you and your spouse
10% discount at the book store
Free access to athletic events
Free admission to the Vesterheim museum
Check out books/videos at Luther’s library
Invitations to special events on campus

39. Helpful Links for HSA’s and Medicare

40. HSA Links
Links to Medicare information relating to costs and HSA can be found on the HR website:
plan-info/medicare/

41. New to Medicare
Winneshiek Medical Center is hosting a free "Welcome to Medicare" seminar from 6 to 8 p.m. Tuesday, May 22
This two-hour seminar, offered by the Winneshiek Medical Center Senior Health Insurance Information Program (SHIIP) counselors, will be held in WMC's lower level conference rooms
The free seminar covers Medicare Part A and Part B benefits, the prescription drug benefit (Part D), Medicare Advantage plans and Medicare supplement insurance
Registration is required by May 14. register online at or call

42. What’s Next?
You and/or your spouse are always welcome to stop by our office to ask questions, pick up forms, etc.
Or just to say Hi!!
HR is located on the lowest level of Main
The main HR phone extension is 1134
Marsha is at extension 1415
Thank you for coming!