EMPLOYEE BENEFITS

Overview

What happens when you get married? What happens when you adopt or have a child? What happens when your dependent child no longer needs/is eligible for coverage? What happens when you begin a leave of absence or a sabbatical? Domestic Partner (Spousal Equivalent)

Preparing to Retire

Overview Retiree Medical Plan Medicare Information Retirement Plan Income Other Retiree Benefits

Terminating Employment COBRA

Retiree Medical Plan

Health Plan Benefits

You will be an MIT Retiree if, when you leave the Institute, you are age 55 or older, and have completed 10 years of MIT Retirement Plan eligible service after age 45.* The following is a summary of your Massachusetts Institute of Technology Health Plan Benefits.

* Due to the academic year, the standard of ten years of service is met after 9 years and 8 months.

Health Insurance

Eligibility for MIT Retiree Medical Benefits

In order to be eligible for retiree medical benefits from the Institute:

You must be at least age 55
You must have 10 or more years of retirement plan eligible service after age 45 **
You have retired from the Institute

** To satisfy eligibility requirements for retiree medical benefits, an employee who has less than 10 years of MIT retirement plan eligible service may receive credit for up to 5 years of service, after age 45 for equivalent service at another non-profit organization. However, such service at another non-profit entity will not count for purposes of increasing MIT’s share of the cost coverage. For example, for a retiree with 5 years of service at another non-profit entity after the age of 45 and 10 years of retirement plan eligible service at MIT after the age of 45, MIT’s share would be 50% not 60%.

Grandfathered Eligibility

You were eligible for retiree health insurance benefits on July 1, 1995 if, on that date, you were at least age 55 and had at least 10 years of service or you were at least age 65. Under these grandfathered eligibility rules, if you and your spouse/partner are under age 65, the cost is the same as the cost to active MIT employees. If you and your spouse/partner are age 65 or over, MIT pays the full cost of Blue Cross and Blue Shield's MEDEX Supplement and subsidizes the other Medicare supplement plans up to the cost of MEDEX.

As an MIT Retiree, you, your spouse/partner and eligible dependents qualify to elect to participate in one of MIT’s health insurance plans. Your coverage options are dependent upon your age at retirement.

Health Insurance If You Retire Before Age 65

If you retire before age 65, you will continue to be covered by one of the health plans available to active MIT employees.
Once you reach age 65, Medicare Parts A and B will become your primary insurance. You may add to that coverage your choice of one of the Medicare supplement plans offered by MIT.

Generally, three months before the month in which you reach age 65, the MIT Benefits Office will send you a letter reminding you to enroll in Medicare Parts A and B. You will also receive a packet of materials describing the Medicare supplement plan options and the forms needed to enroll as of the first day of the month in which you reach age 65.

Health Insurance If You Retire On Or After Age 65

If you retire on or after age 65, Medicare Parts A and B will become your primary insurance. You may add to that coverage your choice of one of the Medicare supplement plans offered by MIT.

Health Insurance For Your Spouse/Partner

Your spouse/partner’s health insurance coverage depends on your spouse/partner’s age in relation to your age. If your spouse/partner is under age 65, regardless of your age, your spouse/partner may continue to be covered by one of MIT’s active health insurance plans.

If Your Spouse/Partner Is Under Age 65 When You Retire

If your spouse/partner is under age 65 at the time of your retirement, your spouse/partner will remain in an active MIT health plan. If you are over age 65, you must enroll in a Medicare supplement plan and your spouse/partner’s coverage will change from family coverage to individual coverage. Retirees and spouses/partners without dependent children will change from family coverage to two individual plans. (Note: If you have dependent children, they will continue to be covered and family coverage will continue.)
Generally, three months before the month in which your spouse/partner will reach age 65, he or she will receive a letter from the MIT Benefits Office reminding him or her to enroll in Medicare Parts A and B. Your spouse/partner will also receive a packet of materials describing the Medicare supplement plan options and the forms needed to enroll as of the first day of the month in which he or she reaches age 65.

If Your Spouse/Partner is Age 65 Or Older When You Retire

If your spouse/partner is age 65 or older when you retire, your spouse/partner must have Medicare Parts A and B as primary medical coverage. MIT will offer one of the Medicare Supplement Plans as additional coverage. Your spouse/partner is not obligated to have the same supplemental coverage as you.

Retiree Cost of Health Insurance

Under Age 65

Any cost will be deducted from your MIT monthly pension check unless you defer receipt of your MIT Basic Plan Benefit.

MIT’s share of the cost of coverage will be based on your years of retirement plan eligible service with the Institute after age 45.

MIT’s share will equal 50% for retirees with 10 years of such service after age 45;
MIT’s share will increase 2 percentage points for each additional year of such service beyond the initial ten years of required service to a maximum of 70% for retirees with 20 or more years of such service after age 45 and;
Partial years of such service will be prorated at .167% per month.

The following chart illustrates the Institute’s and retiree’s cost sharing by years of service.

Years of Service after age 45	MIT Share	Retiree Share
20	70%	30%
19	68%	32%
18	66%	34%
17	64%	36%
16	62%	38%
15	60%	40%
14	58%	42%
13	56%	44%
12	54%	46%
11	52%	48%
10	50%	50%

Changing from Family Coverage to Two Individual Coverage Plans

A retiree and spouse/partner who are under age 65 with dependent children have family coverage until either reaches age 65 and/or becomes eligible for Medicare.

Retirees and spouses/partners without dependent children will change from family coverage to two individual plans. This may result in lower costs for retirees with longer service, while preserving the same level of benefits.

Over Age 65

Cost sharing for retiree health plans:

MIT’s share will equal a percentage of the cost of MIT Group MEDEX.
This percentage will be based on your years of retirement plan eligible service after age 45, will be prorated for partial years, and is identical to the percentages that apply to retirees under age 65, as explained above.
You will pay the remainder of the cost of your coverage.
The dollar amount MIT pays will change as the cost of MIT Group MEDEX changes.

NOTE: While MIT anticipates that retiree medical benefits will continue, MIT reserves the right to amend, suspend, modify, interpret, or discontinue retiree medical benefits at any time.

2008 MIT Retiree Health Insurance Rates (Non-Grandfathered Group)

Age 65 and over (Non-Grandfathered Group): MIT's share will equal a percentage of the cost of MIT Group Medex. This percentage will be based on your years and months of retirement-plan eligible service after age 45. You will pay the remainder of the cost of your coverage. Refer to cost-sharing chart in your MIT Retiree Benefits Information booklet.

PLAN NAME	FULL PREMIUM
Medex	$277.00
Tufts Medicare Preferred (formerly known as Secure Horizons)	$153.00
Tufts Medicare Complement	$313.00
Managed Blue for Seniors	$421.41

Under Age 65 (Non-Grandfathered Group): Your cost will be based on your years and months of retirement-plan eligible service after age 45. Refer to the cost-sharing chart.

FULL MONTHLY COST
Health Plan	Individual	Family
BCBS Blue Choice	NA	NA
BCBS PPO	$617.00	$1,604.00
Trad’l MIT Health	$440.00	$1,144.00
Flexible MIT Health	$516.00	$1,342.00
Network Blue NE	$460.00	$1,196.00
Tufts Health Plan	$496.00	$1,290.00

2008 MIT Retiree Health Insurance Rates (Grandfathered Group)

The Rates below are applicable to MIT Retirees who; were born before July 1, 1930 and were retirement plan eligible or if you were born before July 1, 1940 and completed 10 years of retirement plan eligible service before July 1, 1995.

MIT’s Medicare supplement plans have recently announced new rates. MIT currently subsidizes the cost of each of the plans up to the cost of the Medex plan. If the plan you choose requires that you pay a premium, the new monthly rate will take effect beginning with your January 2008 pension check or billing statement.

PLAN NAME	FULL PREMIUM	MIT PAYS	MEMBER PAYS
Medex II	$277.00	$277.00	$0.00
Tufts Health Plan Medicare Preferred (formerly Secure Horizons)	$153.00	$153.00	$0.00
Tufts Medicare Complement	$313.00	$277.00	$36.00
Managed Blue for Seniors	$421.41	$277.00	$144.41

Medicare Supplemental Plan Comparison Chart
Please note that Secure Horizons is now Tufts Health Medicare Preferred

Under Age 65 (Grandfathered Group): Your cost is the same as active employees.

	Monthly Cost for Faculty/Staff		Monthly Cost for Support/Service
Health Plan	Individual	Family	Individual	Family
BCBS PPO	$284.00	$795.00	$274.00	$770.00
Trad’l MIT Health	$132.00	$400.00	$122.00	$375.00
Flexible MIT Health	$208.00	$598.00	$198.00	$573.00
Network Blue NE	$152.00	$452.00	$142.00	$427.00
Tufts Health Plan	$188.00	$546.00	$178.00	$521.00

Forms & Publications