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Self-Select Voluntary Separation Program (SSVSP) 1.

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Presentation on theme: "Self-Select Voluntary Separation Program (SSVSP) 1."— Presentation transcript:

1 Self-Select Voluntary Separation Program (SSVSP) 1

2 Self-Select Voluntary Separation Program All active, regular, full-time and part-time (50% time or more) employees are eligible to apply. Inactive employees, temps, terms and those currently in phased retirement are not eligible. Not everyone who applies will be accepted. Up to 80 employees may be selected. Lab management in its sole discretion makes the decision to accept or reject an application. 2

3 Self-Select Voluntary Separation Program You can apply from May 3 until May 24, 2012 You may rescind your application up to May 31, 2012 Employees will receive e-mails from HR on June 6 or 7 informing them of acceptance/rejection of SSVSP application Employees will receive acceptance packages or an explanation for disapproval from HR on June 12 Let us know if you will not be here on June 12 3

4 Self-Select Voluntary Separation Program You will be required to sign and not later revoke a General Release and Waiver in order to be eligible for severance. You can take the SSVSP but not sign the waiver but then you will not receive severance. You can participate in the SSVSP and still retire and be eligible for retiree medical. 4

5 Self-Select Voluntary Separation Program Accepted employees will be separated between June 26, 2012 and July 13, 2012 based on business needs. If you are thinking about retiring, consider scheduling a meeting with TIAA CREF or Fidelity to discuss your financial situation and evaluate retirement readiness. You will be scheduled for an exit interview and meeting with benefits on or near you last day of work. 5

6 COBRA/DWMBP Medical insurance may be continued under Displaced Worker Medical Benefit Program (DWMBP): Dental coverage is available through COBRA COBRA ends after 18 months – DWMBP ends when you have obtained other coverage COBRA election forms are mailed to your home within 15 days after end of employment DWMBP Rates Year 1Same as for active employees Year 250% of COBRA rate Year 3 and after100% of COBRA rate 6

7 Flexible Spending Accounts Charges submitted for reimbursement must be for services while employed with Fermilab Claims must be submitted by the quarter following your employment termination date Extended filing period does not apply If you enroll in an FSA with a new employer, be aware of the $5,000 IRS maximums for dependent care. 7

8 403(b) Review current contribution May have deductions taken from lump sum vacation payment and/or final paycheck Severance may not be contributed to the plan May contribute up to the IRS annual maximum of $17,000 If age 50 or older may contribute additional $5,500 Complete special election form prior to final paycheck 8

9 Retirement Eligibility for Retirement:  Hired on or after 10/1/2008 - Age 55 with at least 15 years of continuous service  Hired before 10/1/2008 - Age 55 and at least 3 years of continuous service and sum of age and service at least equal to 65  Retiree Medical Coverage  May be elected for retiree and/or spouse  If retiring from Fermilab but working for new employer, coverage must be deferred within 30 days of retirement 9

10 Before Retiring Attend TIAA-CREF or Fidelity individual sessions – Estimate your expenses, net worth and post-retirement income needs – Review your 401(a) and 403(b) plan investments Review current Fermilab benefits Review options for continuing benefits If approaching or over age 65, contact local Social Security office Evaluate Medicare options 10 TIAA-CREF (866) 843-5640 May 18 May 22 May 23 Fidelity (800) 343-0860 May 22

11 Retirement Expense Planning Living Expenses for Workers vs. Retirees 11 All Workers/Pre-retirement Average Income: $74,147 Average Expenses: $53,218 n=76,067 Retirees Average Income: $35,779 Average Expenses: $36,111 n=21,457 Bureau of Labor Statistics: Consumer Expenditure Survey 2010 – Table 53

12 Sources of Income Workers vs. Retirees 12 All Workers/Pre-retirement Average Income: $74,147 Retirees Average Income: $35,779 Bureau of Labor Statistics: Consumer Expenditure Survey 2010 – Table 53

13 Medicare What is Medicare ? Medicare is a Health Insurance Program for people age 65 or older Medicare provides coverage for disabled people under age 65 People of all ages with End-Stage Renal Disease (permanent kidney failure treated with dialysis or a transplant) Medicare is administered by the Centers for Medicare & Medicaid Services (CMS) Decisions on Eligibility, Cost and Covered Services is made by CMS 13

14 Types of Medicare Plans Medicare Part A provides coverage for hospitalization Medicare Part B provides coverage for physician visits, laboratory & x-ray, and other outpatient care Medicare Part C is also known as a Medicare Advantage plan. This type of plan takes the place of all other types of Medicare, and is offered by private insurance companies approved by Medicare Medicare Part D provides prescription drug coverage 14

15 Medicare Enrollment Enrollment in Part A & Part B is required by the Fermilab Retiree Medical Plan If you enroll in the Fermilab Retiree Medical Plan you should not enroll in Part D. The Fermilab Retiree Medical Plan provides your drug coverage For most retirees, the Fermilab Retiree Medical Plan takes the place of a Medigap policy For most retirees, a Medicare Advantage Plan is not a cost effective choice if also enrolled in the Fermilab Retiree Medical Plan 15

16 Medicare Enrollment 16

17 Medicare Enrollment 17

18 Medicare Part A Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare- covered employment The Part A premium is $451.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment 18

19 Medicare Part B The standard Medicare Part B monthly premium is $99.90 in 2012 If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $99.90 per month There will be a late-enrollment penalty if you do not enroll in Medicare Part B during your designated enrollment period: – During Initial Enrollment Period, or – Special Enrollment Period (for those who retire after age 65) 19

20 Medicare Part B Social Security will use the income reported two years ago on your IRS income tax return to determine your premium. – For example, the income reported on your 2010 tax return will be used to determine your monthly Part B premium in 2012. – If your income has decreased since 2010, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria. 20

21 Income Related Monthly Adjustment Amount (IRMAA) The Internal Revenue Service supplies your tax filing status, your adjusted gross income, and your tax-exempt interest income to the Social Security Administration to determine if you have an income related monthly adjustment amount (IRMAA) The Social Security Administration will add your adjusted gross income together with your tax-exempt interest income to get an amount called the modified adjusted gross income (MAGI). The chart that follows shows the Part B monthly premium amounts based on MAGI. These amounts change each year. 21

22 Medicare Part B Tax Return Filing Status Single MAGI Tax Return Filing Status Joint MAGI 2012 Part B PremiumYearly Income $ 99.90 $85,000 or less$170,000 or less $139.90 $85,001-$107,000$170,001-$214,000 $199.80 $107,001-$160,000$214,001-$320,000 $259.70 $160,001-$214,000$320,001-$428,000 $319.70 Above $214,000Above $428,000 Premiums and income ranges are different than those above for those who are married but file individual income tax returns. To find more information about the income-related monthly adjustment amounts or to apply for Medicare Part A or B, please visit or call Social Security at 1-800-772-1213 22

23 Medicare Part D Medicare prescription drug coverage is available to everyone with Medicare – Plans are administered by private companies approved by Medicare – Plans vary in cost and drugs covered If you enroll in the Fermilab retiree medical plan, you will receive your drug coverage through our plan. You should not enroll in both the Fermilab Retiree Medical plan and Medicare Part D. 23

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