THE GEORGE WASHINGTON UNIVERSITY Retirement …

[Pages:22]THE GEORGE WASHINGTON UNIVERSITY

Retirement Planning Guide

Contents

3 Introduction

4 Are You Eligible to Retire?

5 Retirement Timeline

6 What Happens to Benefits at Retirement?

7

Retirement Plans

8

Medical, Dental and Vision Insurance

8

Castlight

8

Health Savings Account (HSA)

8

Flexible Spending Accounts (FSAs)

9

Health Advocate

10 Basic Life and Accidental Death and Dismemberment (AD&D) Insurance

11 Optional Life and AD&D Insurance

11 Disability Insurance (Short- and Long-Term)

12 Tuition Benefits

12 Legal Plan

12 Accrued Leave

13 Continuation of Medical, Dental and Vision Insurance

14 For Retirees and Dependents Under Age 65

15 For Retirees and Dependents Over Age 65

16 COBRA Coverage

16 Continued Coverage Upon a Retiree's Death

17 Medicare Benefits

17 What is Covered

17 Enrollment

18 Cost

18 Limitations in Coverage

18 Medigap Insurance

19 Medicare Advantage vs. Medigap

20 Contact Information

2 | Table of Contents

Introduction

The purpose of this guide is to provide necessary information to benefits eligible faculty and staff who are beginning to consider, or are currently in the process of planning, retirement from the George Washington University.

In this guide, we will delve into a general overview of what happens to benefits at retirement, including information on continuation of coverage through GW, and provide a timeline to help simplify the process of retirement planning.

Administration and Medicare, as applicable, for more comprehensive information regarding your benefits. Contact information for benefit carriers and agencies are provided on page 20.

Please note: The information in this guide is not intended to advise you on which particular retirement choices are most appropriate for you and your family. Those decisions should be made by you, in consultation with your family and financial advisors.

Specific information on GW retiree benefits ? including coverage options and premium rates ? may be found in the Retiree Open Enrollment Guide, available at .

In addition to reviewing the information in this guide, you should consult directly with insurance carrier representatives, the Social Security

3 | Introduction

Are You Eligible to Retire?

GW faculty and staff are eligible for retirement under the following circumstances:

Reach age 65 (no minimum service

requirement)

Reach age 60, with a minimum of 10 years of continuous full-time

service

Reach age 55, with a minimum of 20 years of continuous full-time

service

4 | Are You Eligible to Retire?

Retirement Timeline

Age 59 ?

You are eligible for in-service withdrawals from your 403(b) Retirement Plan account and from any matching contributions in your 401(a)

Retirement Plan account.

Age 64 + 8

mos You are eligible to apply for Medicare.

If you are still working for GW and covered under a GW medical plan, you do not have to enroll in Medicare

until you plan to retire.

Approx. 90 days before retirement

Make an appointment with your retirement investment representative to clarify any

questions you may have about your retirement accounts, including current fund allocation,

accumulated balances and distribution options. If you are retiring at age 62 or older: Contact your local Social Security and Medicare offices to arrange for the start of your Social Security Retirement Income. You may call to request an appointment at 1 (800) 772-1213. Informational booklets and a local office locator may be found on the Social Security Administration website at . Staff members: Inform your supervisor of your approaching retirement. Faculty members: Contact Faculty Personnel or your Department Chair to discuss your approaching retirement.

Age 62

Did You Know?

As an active employee, beginning the year you turn age 50, you

are eligible to make a "catch-up" contribution of $6,000 to GW's 403(b) Retirement Plan. If you participate in the GW

Health Savings Plan (HSP) and have a Health Savings Account (HSA), the year you turn age 55, you become eligible to contribute an additional

$1,000 HSA catch-up contribution.

You are eligible for in-service withdrawals from any base contributions in your 401(a) Retirement Plan account.

Age 70 ?

If you are no longer working for GW, you must begin taking Required

Minimum Distributions (RMDs) from your 403(b) and 401(a) retirement

accounts.

5 | Retirement Timeline

What Happens to Benefits at Retirement?

The George Washington University offers a wide variety of benefits and programs to support faculty and staff during their employment at the university. Some of these benefits will be discontinued upon retirement, while others will continue throughout the retirement years.

Important!

Please see the Retirement

Timeline on page 5 to learn more.

Retirement Plans

GW and employee contributions to the retirement plans ends upon retirement from the university. Prior to your retirement, you should contact your investment provider(s) to request an analysis of the payment options available to you upon retirement, as well as any necessary forms for distribution. Rules regarding the transfer or withdrawal of retirement funds vary. You should consult with your provider(s) for more information.

Investment representatives with Fidelity Investments, TIAA and The Equitable will provide you with the necessary forms that you must complete in order to begin receiving your retirement funds. Upon request, they may also provide you with illustrations of the options available to you at retirement.

In most cases, your investment provider(s) will be able to complete your distributions without additional authorization from GW Benefits. Please return completed forms to your provider(s) for processing; include the entire form (not just the signature page). If you have questions regarding how to complete the distribution form, please contact the appropriate investment representative. Allow two to three days for processing by the provider.

If you need additional assistance, please contact GW Benefits.

7 | What Happens to Benefits at Retirement?

Medical, Dental and Vision Insurance

Coverage under group medical, dental and vision insurance ends on the last day of the month in which you retire. For example, if you retire on May 15, your active medical, dental and/or vision coverage will continue until May 31. At the time of your retirement, you, your spouse/domestic partner and eligible dependents who are currently covered under your active plan(s) will have the option of continuing coverage via GW's retiree medical, dental and vision plan offerings. If you elect not to continue your medical coverage at the time of retirement, you will not be eligible to participate in the GW retiree medical coverage offerings in the future. For more information on retiree health plan benefits, please see the Continuation of Medical, Dental and Vision Insurance section on page 13.

Please note: You will receive a COBRA notice from PayFlex for your medical, dental and vision plans upon termination of employment with GW. If you are planning to continue medical, dental and/or vision benefits under the GW retiree benefit offerings, you may disregard this COBRA notice.

Castlight

Complimentary access to the healthcare transparency tool Castlight ends upon retirement from GW.

Health Savings Account

After retirement, you may continue to access your Health Savings Account (HSA) funds, tax-free, to pay for medical expenses and premiums for yourself and eligible dependents. Note: As a GW Retiree Health Savings Plan participant, you may continue to contribute to an HSA as long as you meet certain criteria.

Flexible Spending Accounts

Participation in Flexible Spending Accounts (FSAs) ends on your last day of employment at GW. If you are retiring this year, claims for eligible expenses incurred prior to your retirement date must be submitted to PayFlex by April 30 of next year.

You may continue participation in the Health Care FSA (HCFSA) during retirement through COBRA for the remainder of the plan year in which you retire; however, payments (including an administrative fee) will be on an after-tax basis. Note to COBRA participants who pay HCFSA premiums for the full calendar year: Funds remaining in the HCFSA as of December 31 will carry over and be available for use until March 15 of the following year (known as the 75-day FSA grace period).

The Dependent Day Care FSA (DCFSA) cannot be continued after retirement. However, DCFSA participants may submit claims for eligible expenses incurred prior to December 31 of the year they retire, up to the contributed amount, regardless of retirement date.

8 | What Happens to Benefits at Retirement?

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