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Questions & Answers

A. General

1. What are the goals of the ERIP-2013?

The goals of the ERIP-2013 are to provide opportunities for units to reduce salary/wage and associated benefit costs, to redirect positions to focus on higher priorities, and to avoid or minimize future involuntary reductions in personnel.

2. If I apply for the ERIP-2013, am I guaranteed approval?

The ERIP-2013 is a voluntary separation program that requires University approvals. The University does not guarantee that every application to participate in the ERIP-2013 will be approved.  See Review and Approval Process for more information.

3. What are the ERIP-2013 incentive benefits?

ERIP-2013 Participants will receive:

  • A one-time Income Replacement payment:
    • Academic and Staff employees who are potential recipients of 18/20 Retirement Plan or IU Replacement Plan benefits will receive an amount equal to two times annual base salary (10-month appointments will receive two times their 10-month base salary)
    • All other Staff employees will receive an amount equal to 6-months base salary/wages
    • All other Academic employees will receive an amount equal to annual base salary, with 10-month appointments receiving 10-months base salary
    • Income Replacement Payments are calculated based on the employee’s base salary/wages on September 1, 2013, for December 31, 2013, separations or on February 1, 2014, for May 31, 2014, separations. 
  • All ERIP-2013 Participants who are enrolled as the employee (not as a dependent) in an IU-sponsored medical plan on September 1, 2013, for December 31, 2013, separations or on February 1, 2014, for May 31, 2014, separations will be provided a health reimbursement account (HRA). 
  • ERIP-2013 Participants may continue in an IU-sponsored medical plan until Medicare age (65); and, if have IU Retiree Status, may continue in a Medicare Supplemental medical plan upon reaching age 65.
  • IU Retiree Status benefits for those who meet age and IU service requirements.
  • Pay to Staff employees for unused paid time off and compensatory time in accordance with normal IU policies.
B. Eligibility Criteria

1. Who is eligible?

Full-time Academic and Staff employees of Indiana University are eligible to apply for the ERIP-2013 if, as of June 30, 2013, the employee

Is at least 60 years old, and

Has at least 15 years of full-time service with the University

2. Who is not eligible?

The following employees and individuals are not eligible to apply for or to participate in the ERIP-2013:

  • Employees who are eligible to begin receiving their benefits under the IU 18/20 Retirement Plan and/or the IU Replacement Retirement Plan, on June 30, 2013. (For the 18/20 Plan, benefits may start as early as age 64 until age 70; and for the IU Replacement Retirement Plan, benefits may start after reaching age 64.)
  • Employees who are potential participants in the IU Replacement Retirement Plan, are at least age 64 as of June 30, 2013, and would be vested in the benefits provided by that plan on June 30, 2013
  • Employees who have signed an agreement with Indiana University to participate in the IU Phased Retirement Program
  • Employees who are using PTO or Vacation accruals to bridge to an already-specified separation date arranged prior to July 1, 2013
  • Employees who have already signed a formal separation agreement with Indiana University
  • Employees who have been given notice prior to July 1, 2013, of their involuntary termination from Indiana University
  • Employees who have participated in any other early retirement incentive at any time in the past
  • Part-time Academic and Staff employees (“part-time” means an appointment of less than 100% FTE)
  • Other individuals who are not eligible include, but are not limited to: Hourly/Temporary employees, Graduate Assistants, Medical Residents, Visiting Scholars, and postdoctoral fellows
C. The Effective Date of Separation

1. What is the effective date of separation under the ERIP-2013?

December 31, 2013, or May 31, 2014

2. Who decides which date applies?

Eligible employees must indicate a preferred separation date (December 31, 2013, or May 31, 2014) at the time of the submission of the application for ERIP-2013. However, the applicable department head will determine the actual separation date, based on the date that is in the University’s best interest.

3. Can I leave earlier than the approved separation date?

To receive the ERIP-2013 benefits, employees must leave on the approved separation date.  ERIP-2013 benefits are not available if the separation occurs on any other date.

4. Can I use up my vacation or PTO time before leaving?

With department head approval, employees may use vacation or PTO time before leaving the University up to the annual limits stated in the personnel policies.

5. If I take time off before my separation date, do I have to return to work on my last day?

The University Staff policy that requires a person to be at work on his or her last day will be waived for the ERIP-2013. With department head approval, employees separating under ERIP-2013 may use a vacation or PTO day on the day of separation. 

6. Before I leave, can I use more vacation or PTO than is permitted under current policies?

The annual limits on the use of vacation time or PTO will remain in effect.  The limits are stated in the personnel policies.

D. The Income Replacement Payment

1. How is the Income Replacement Payment calculated?         

    • Academic and Staff employees who are potential recipients of 18/20 Retirement Plan or IU Replacement Plan benefits will receive an amount equal to two times annual base salary (10-month appointments will receive two times their 10-month base salary)
    • All other Staff employees will receive an amount equal to 6-months base salary/wages
    • All other Academic employees will receive an amount equal to annual base salary, with 10-month appointments receiving 10-months base salary
    • Income Replacement Payments are calculated based on the employee’s base salary/wages on September 1, 2013, for December 31, 2013, separations or on February 1, 2014, for May 31, 2014, separations. 
    • For salaried employees (e.g. Academic and Professional Exempt Staff), this amount will be calculated based on monthly base salary. 
    • For non-exempt employees (e.g. Professional Overtime Eligible Staff and Support and Service Staff), this amount will be 26 times weekly base wages.
    • Base salary/wages do not include overtime, supplemental pay, summer pay, call-back pay, shift differentials, administrative supplements, professorships, or any other non-base salary or wages.  

2. What can I use the Income Replacement Payment for?

The payment may be used in any way that the Participant wishes.

3. When is the Income Replacement Payment paid?

It will be paid in the month following the employee’s separation date.

4. Can I avoid paying taxes on the payment by putting the money into a retirement savings account or a tax deferred annuity?

  • In accordance with regulations from the IRS and the Indiana Public Employees Retirement Fund (PERF), no portion of this lump-sum payment is eligible for salary deferral under the IU TDA Plan or the IU Retirement Savings Plan, nor is it considered to be “compensation” for purposes of calculating the University's contribution to the IU Retirement Plan or to PERF. 
  • Employees who are not already maximizing their tax-deferred contributions to the IU TDA Plan and/or the IU Retirement Savings Plan may be able to allocate tax-deferred contributions to these plans from base compensation received during the months prior to separation. More information about the IU TDA Plan and the IU Retirement Savings Plan is located at hr.iu.edu/benefits/supp_retire.

5. Do I receive PERF or IU Retirement Plan contributions on the Income Replacement Payment?

PERF and IU Retirement Plan contributions are not made on the Income Replacement Payment.

6. What taxes will be withheld from the Income Replacement Incentive payment?

The Income Replacement Incentive payment will be paid in a single lump-sum, less all deductions for local, state and federal taxes legally required to be withheld. Taxes will be withheld at normal rates, except for the federal tax, which will be withheld at a flat 25 percent. (Normally, federal tax withholdings vary based on the employee's income bracket but for this one-time payment the rate is a flat 25 percent.)

Applicable tax withholdings for most participants will be:

Federal: 25.0%
IN State:   3.4%
Social Security:   6.2%*
Medicare:   1.45%
Local: varies** See list of Indiana counties on IN.gov Web site (PDF)

 

*Income above $113,700 is not taxed by social security in 2013.

**Local taxes are determined by the county in which the employee works and lives; there is a resident and non-resident rate for each county.

E. The Health Reimbursement Account (HRA)

1. What is a Health Reimbursement Account (HRA)?

The HRA component of ERIP-2013 is an IU-sponsored benefit account that allows Participants to use the account balance for certain IRS-eligible health expenses that are not covered by insurance.  Participants must be enrolled as the employee (not as a dependent) in an IU-sponsored medical plan on September 1, 2013, for December 31, 2013 separations or on February 1, 2014 for May 31, 2014 separations.

2. How much do I receive?

  • On an annual basis, for a period of five years, except as provided in the paragraphs below, the University will credit an amount to an HRA on behalf of the ERIP-2013 Participant.  The amount of the HRA credit depends on the employee’s age and IU-sponsored medical plan membership level on September 1, 2013 for December 31, 2013 separations or on February 1, 2014 for May 31, 2014 separations.  For years that the participant is under Medicare age (65), the annual amount will be:
    • Employee Only                             $7,400
    • Employee with Child                 $14,600
    • Employee with Spouse            $17,900
    • Family                                          $20,300
  • At the beginning of the annual benefit period after the ERIP-2013 Participant turns age 65 (eligibility for Medicare), the University will instead credit an amount to an HRA on behalf of an ERIP-2013 participant equal to $7,400 each year.  If the ERIP-2013 participant is eligible for Medicare at the time of the associated ‘as of’ dates (September 1 for December 31 separations and February 1, 2014 for May 31st, 2014 separations), then the first contribution to the HRA will equal $7,400.
  • University contributions to the HRA will cease if, before the end of the five year period, the ERIP-2013 Participant:
    • becomes enrolled in a medical plan through another employer (as the employee),
    • becomes enrolled as a dependent on a spouse/domestic partner’s IU medical plan while the spouse is employed at Indiana University, or
    • the date the Participant dies.

3. When is the amount credited to my HRA?

University contributions to the ERIP-2013 participant’s HRA will begin during the month following separation, and then annually thereafter. 

4. Is the money paid directly to me?

The money is credited to the Participant’s HRA, not directly to the employee.

5. Is the money in the HRA taxed?

The HRA is not considered taxable income. See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

6. What expenses can be reimbursed through my HRA?

  • The ERIP-2013 Participant can use the HRA to reimburse health expenses within the meaning of Section 213(d) of the Internal Revenue Code on behalf of the Participant, her or his spouse, and her or his eligible dependents. Examples of health expenses that qualify for HRA reimbursement:
      • COBRA premiums
      • Other After-Tax Health Insurance premiums
      • PPO $900 Retiree plan premiums
      • Medicare part B and D premiums
      • IU Blue Retiree plan premiums
      • *NEW* Medicare Supplement plan (Medigap) premiums
      • Medicare Advantage Plan (part C) premiums
      • Deductibles and co-payments
      • Routine care/physical exams
      • Transportation for medical services
      • Lab fees
      • Stop-smoking programs
      • Hearing aids and related expenses
      • Prescriptions
      • Dental care and orthodontia
      • Eye Glasses and Contacts
      • Acupuncture
      • Nursing Home or Services

      *For HDHP PPO & Health Savings Account participants, reimbursements are limited to HDHP COBRA premiums, Medicare premiums, Medicare Advantage Plan premiums, IU Blue Retiree Medicare Complement plan premiums, COBRA dental premiums and services and vision premiums and services, until after the HDHP deductible is met.  The HRA cannot be used for medical care costs or prescriptions until the HDHP deductible is met for the year.

  • For a complete list of health expenses that qualify for reimbursement refer to IRS Publication 502 Medical and Dental Expenses.
  • The IRS does not allow the use of HRA funds for expenses associated with a domestic partner, unless the partner qualifies as a dependent under IRS regulations.
  • Some expenses not allowed by the IRS include: non-prescription drugs and medicines, cosmetic procedures, health club dues, expenses covered by an insurance or government program, etc.
  • Eligible expenses must be incurred on or after the effective date of the HRA.  For example, if the last day of employment is December 31, 2013, the HRA effective date will be January 1, 2014.

7.  Who can I use my HRA funds for?

Reimbursements under an HRA can be made to the following persons.

  1. ERIP-2013 Participants
  2. Spouses and dependents of Participants.
  3. Any person the Participant could have claimed as a dependent on their return except that:
    1. The person filed a joint return,
    2. The person had gross income of $3,800 or more, or
    3. The Participant and spouse if filing jointly could be claimed as a dependent on someone else's tax return.
  4. The Participant's child under age 27 at the end of the tax year.
  5. Spouses and dependents of deceased Participant.

Additional resources and information can be found in IRS Publication 502, Medical and Dental Expenses.

* The IRS does not allow the use of HRA funds for expenses associated with a domestic partner, unless the partner qualifies as a dependent or spouse under IRS regulations.

8. Are my Medicare Part B and Part D premiums qualified medical expenses reimbursable from my HRA?

Yes, Medicare Part B is a supplemental medical insurance and premiums participants pay for Medicare Part B are a medical expense.  Check the information received from the Social Security Administration to find out the premium.

Additionally, Medicare Part D is a voluntary prescription drug insurance program for persons with Medicare A or B.  Participants can include as a medical expense premiums paid for Medicare D.

9.  Are Medicare Supplement (Medigap) Plan premiums qualified medical expenses?

*NEW*
Yes, Medicare Supplement or Medigap Plan premiums are eligible for reimbursement from the HRA.  Any co-payments, deductibles or expenses not covered by Medicare and the Medigap plan are also eligible expenses.

A Medigap policy (also called “Medicare Supplement Insurance”) is private health insurance that’s designed to supplement Original Medicare. This means it helps pay some of the health care costs (“gaps”) that Original Medicare doesn’t cover (like copayments, coinsurance, and deductibles). If you have Original Medicare and a Medigap policy, Medicare will pay its share of the Medicare-approved amounts for covered health care costs.

Every Medigap policy must follow Federal and state laws designed to protect you, and the policy must be clearly identified as “Medicare Supplement Insurance.” Medigap insurance companies in most states can only sell you a “standardized” Medigap policy identified by letters A through N. Each standardized Medigap policy must offer the same basic benefits, no matter which insurance company sells it. Cost is usually the only difference between Medigap policies with the same letter sold by different insurance companies.

IU’s Blue Retiree Medicare Complement plan is NOT a medigap plan.  The HRA can be used to reimburse the premiums for this plan.

10.  Are the IU Blue Retiree Medicare Supplement Plan premiums qualified medical expenses?

Yes, IU’s Blue Retiree Medicare Supplement plan premiums are eligible to be reimbursed from the HRA.

11. Are Medicare Advantage Plan (Plan C) premiums qualified medical expenses?

Yes, Medicare Advantage Plan premiums are eligible to be reimbursed with your HRA funds.

A Medicare Advantage Plan (like an HMO or PPO) is another Medicare health plan choice you may have as part of Medicare.  Medicare Advantage Plans, sometimes called “Part C” or “MA Plans”, are offered by private companies approved by Medicare.  If you join a Medicare Advantage Plan, you still have Medicare.  However, you’ll get your Part A (Hospital Insurance) and Part B (Medical Insurance) coverage from the Medicare Advantage Plan, not Original Medicare.

12. How do I access the money in my HRA?

  • Mail, fax, or submit claims online to Nyhart, the plan administrator, in order to receive reimbursement for expenses already paid (see How to submit claims); or
  • Use the IU HRA debit/Visa card to pay for expenses at the time of service. Participants can use the card at any physician’s office, medical facility, pharmacy, or other merchant that accepts Visa (see How to use the debit/Visa card).  Participants may still be required to substantiate some purchases with receipts, so the HRA card does not eliminate the need to keep and submit receipts.
  • If Participants receive a bill for services, they can pay the bill by writing the card number on the invoice and mailing it in, or by providing the card information over the phone. Participants may also use the card for mail order pharmacy service.

13. When do I have to submit claims?

Claims for health expenses incurred while participating in the plan can be submitted for reimbursement at any time while still participating in the plan. Claims will be paid from the HRA up to the amount accumulated in the account at the time the claim is submitted.  Claims cannot be reimbursed if the expense was incurred prior to the date participation began. There will be a 90-day claim deadline after the five year term to file claims for services incurred before the end of the five year term. After the claim deadline, any remaining balance in the HRA is forfeited.

14. If I have more expenses in one year than is available in my HRA, can I get reimbursed in the following year once IU credits my HRA again?

Yes.  Save the original claim submission documentation for your records but Nyhart will automatically release the reimbursement for claims that have been submitted but have not been reimbursed once the HRA has been credited again.

15. Will I forfeit my HRA balance if I don’t use it all during the year?

Any amount remaining in the HRA account at the end of a year will carry forward and can be used in subsequent years to pay for eligible health expenses; provided, however, that unused contributions will be forfeited at the end of the associated five year period (December 31, 2018, or May 31, 2019) or, if earlier, the date that the participant becomes enrolled in a medical plan through another employer (as the employee), is enrolled as a dependent on a spouse’s/domestic partner’s IU medical plan while the spouse/domestic partner is employed at Indiana University, or the date the Participant dies.

16. What happens if I don’t use all of my HRA balance within five years?

At the end of the five year period beginning with the retirement date, any amounts remaining in the HRA will be forfeited.  For example, if a Participant retires on December 31, 2013, s/he may use the HRA to pay for qualified health expenses incurred through December 31, 2018 by submitting claims by March 31, 2019.

17. What happens if I am or will turn age 65 and become eligible for Medicare while participating in ERIP?

  • All participants enrolled as the employee in an IU-sponsored medical plan on September 1, 2013, for December 31, 2013 separations or on February 1, 2014 for May 31, 2014, separations will be provided an HRA, regardless of age.
  • Those who are age 65 or older at the commencement of ERIP-2013 will be credited $7,400 in their HRA each year. 
  • Those who turn age 65 during the five years as a participant in ERIP-2013 will receive a contribution amount based on the medical plan membership level for each year that they are under age 65, then $7,400 for the years that the participant is 65 or older.

18. If I die before the end of the five year period, what happens to my HRA?

  • If the Participant dies after separating from the University, but before the date that funds would otherwise be forfeited, the HRA account can be used by the Participant’s spouse to reimburse health expenses within the meaning of Section 213(d) of the Internal Revenue Code. If there is no spouse at the time of the participant’s death, the HRA account can be used by an IRS qualified dependent.
  • No additional funds are contributed to the HRA after the ERIP-2013 Participant has died.  If there is no spouse or dependent at the time of the Participant’s death, the HRA funds will be forfeited.
  • After the death of an ERIP-2013 Participant, a change of name on the HRA account to a spouse or dependent is not automatic. The surviving spouse or dependent will need to contact University Human Resources within 60 days following the Participant’s death to initiate the process.

19. If my marital or family status changes, does the amount credited to the HRA change?

University’s HRA contribution amounts will not change during the five year benefit period even if the ERIP-2013 Participant has a family status change, (e.g. a marriage) during that period.

20. Why does the HRA benefit not cover my domestic partner?

The IRS does not allow the use of HRA funds for expenses for a domestic partner unless the partner qualifies as a dependent under IRS regulations or a spouse*.

* A spouse means one by marriage, either opposite-sex or same-sex, legally entered into in one of the 50 states, the District of Columbia, or a U.S. territory or a foreign country. Spouses qualify for preferential federal tax treatment of health care benefits, but may not qualify for preferential state tax treatment depending on their state of residency.

Note: While Domestic partners and their children are eligible for IU-sponsored health care plan coverage, registered domestic partnerships, civil unions or similar formal relationships recognized under state law are not recognized by the IRS for preferential tax treatment. HRA funds cannot be used for the domestic partner's health expenses unless they qualify as the employee's tax dependent or spouse.

21. What happens to my HRA if I get another job that has medical care benefits?

  • When the ERIP-2013 participant becomes employed elsewhere and is enrolled in a medical care benefit through their employer, the Participant will no longer be considered an ‘Eligible Individual’ and will receive no additional contributions to the HRA .
  • The ERIP-2013 participant will have a run-out period (corresponding to the period from the termination of his eligibility through the last day of the 12-month Coverage Period in which the Participant’s eligibility ends) in which to incur Qualifying Medical Expenses.

22. What happens if my new job does not have medical care benefits?  Will I continue to receive the HRA contributions for the remaining years in the five year period?

In this circumstance, the HRA contributions will continue if the participant does not have medical care coverage.

23. What happens if I move to my spouse’s IU medical plan?

  • When the ERIP-2013 Participant becomes covered under a spouse’s IU medical care plan, the Participant will no longer be considered an ‘Eligible Individual’ and will receive no additional contributions to the HRA
  • The ERIP-2013 Participant will have 90 days, after they are no longer deemed an ‘Eligible Individual,’ in which to submit claims for reimbursement of qualified expenses to Nyhart in order to use any remaining funds in their HRA account.
  • Any funds in the HRA account after 90 days are forfeited. 

24. What happens if my spouse is employed at another employer and I enroll as a dependent on my spouse’s NON-IU medical plan?

In this circumstance, the HRA contributions will continue if the participant is covered under a spouse’s NON-IU medical care coverage.

F. Medical and Dental Plan Options

1. What do I need to know about signing up for my medical benefits under ERIP-2013?

  • ERIP-2013 participants who are enrolled as the employee in an IU-sponsored medical or dental plan on the date of separation may elect to continue in plan coverage for themselves and any covered spouse and dependents.
  • If a Participant or dependents are under age 65, the plan in place on September 1, 2013, for December 31, 2013 separations or on February 1, 2014, for May 31, 2014 separations is the one for which the Participant is eligible to continue through COBRA coverage after leaving the University. 
  • While on COBRA, each year the Participant will be sent Open Enrollment materials with the available medical plan options.  A Participant may at that time elect to change coverage to another IU medical plan, change coverage level, or waive medical coverage. 
  • When COBRA coverage has been exhausted, and if the Participant and/or spouse and children are still under age 65, they can elect to move to the Under 65 - PPO $900 Deductible medical plan.
  • If the Participant did not have IU Retiree Status on December 31, 2013 or May 31, 2014, s/he is no longer eligible for medical coverage under IU medical plans once the participant has reached age 65.
  • If the participant had IU Retiree Status on December 31, 2013 or May 31, 2014, s/he may elect to participate in the IU Blue Retiree Medicare Supplement plan once the participant has reached age 65. If a covered spouse is under age 65 at the time s/he elects the IU Blue Retiree Medicare Supplement plan, he or she can be covered under the Under 65 – PPO $900 Deductible medical plan until reaching age 65 and then elect the IU Blue Retiree Medicare Supplement plan.

2. What will happen if I am in IU’s High Deductible Health Plan (HDHP)/Health Savings Account (HSA) on the date of separation?

  • Those separating December 31st and are age 65+, there are no conflicts. Your primary insurance for 2014 would be Medicare. If you have IU Retiree Status you can elect the IU Blue Retiree Medicare Supplement plan.
  • For those separating either December 31st or May 31st and are age <65, in January/June you can elect COBRA (continuation of the HDHP) or you can go directly to the Retiree $900 Deductible plan.  If you go directly to the Retiree $900 plan at separation, the pro-rated information below would apply. If you remain on the HDHP you are eligible to contribute to your HSA.  Please Note:  If you are contributing to an HSA while on HDHP COBRA, the HRA can be used for HDHP COBRA premiums, Medicare premiums, Medicare Advantage Plan premiums, COBRA dental premiums and expenses and vision premiums and expenses but cannot be used for medical care costs or prescription expenses until the HDHP deductible has been met for the year.
  • For those separating May 31st and are age 65+,  or  age <65 and going directly to the Retiree $900 deductible plan at separation will need to take into consideration that your contribution maximum to your HSA will be pro-rated based on the number of months that you had HDHP coverage.  You would only be eligible to contribute 5/12ths of the 2014 annual IRS contribution maximum.
    • Employee Only Coverage:
      • 2014 Annual Max:            $4,300.00 (includes Catch-up contribution)
      • Pro-Rated Max (5/12):     $1,791.67 (IU’s contribution + employee’s contributions)
    • Employee + One or More Dependents Coverage:
      • 2014 Annual Max:            $7,550.00 (includes Catch-up contribution)
      • Pro-Rated Max (5/12):     $3,145.83 (IU’s contribution + employee’s contributions)

3. How much will the options for IU medical plan coverage cost?

Rates are listed below for the 2013 and 2014 plan years.  2013 and 2014 medical plans are separate and different coverage levels may be selected for each plan.  IU reserves the right to change rates at any time.

2013
PPO $400 Deductible
Monthly Premiums for 2013
One participant $   626.26
One participant and child(ren) $1,240.52
Participant and spouse $1,519.39
Participant and family $1,725.19
PPO $900 Deductible
Monthly Premiums for 2013
One participant $   543.77
One participant and child(ren) $1,084.66
Participant and spouse $1,325.99
Participant and family $1,505.86
HDHP PPO
Monthly Premiums for 2013
One participant $   277.68
One participant and child(ren) $   553.89
Participant and spouse $   677.13
Participant and family $   768.98
IU Health Quality Partners Exclusive Provider
Monthly Premiums for 2013
One participant $   545.49
One participant and child(ren) $1,088.06
Participant and spouse $1,330.16
Participant and family $1,510.61
2014
PPO $500 Deductible
Monthly Premiums for 2014
One participant
$   688.26
One participant and child(ren)
$1,363.33
Participant and spouse
$1,669.81
Participant and family
$1,895.98
PPO $900 Deductible
Monthly Premiums for 2014
One participant
$   594.88
One participant and child(ren)
$1,186.62
Participant and spouse
$1,450.63
Participant and family
$1,647.41
HDHP PPO
Monthly Premiums for 2014
One participant
$302.40
One participant and child(ren)
$603.19
Participant and spouse
$737.39
Participant and family
$837.42
IU Health Quality Partners Exclusive Provider
Monthly Premiums for 2014
One participant
$   599.48
One participant and child(ren)
$1,195.79
Participant and spouse
$1,461.84
Participant and family
$1,660.16

 

4. How much will the options for IU dental plan coverage cost?

Rates are listed below for the 2013 plan year.  The 2013 dental plan is separate and different coverage levels may be selected for each plan.  IU reserves the right to change rates at any time.

2013
Dental
Monthly Premiums for 2013
One participant $  29.52
One participant and child(ren) $  53.15
Participant and spouse $  69.33
Participant and family $101.12
2014
Dental
Monthly Premiums for 2014
One participant
$  30.22
One participant and child(ren)
$  54.42
Participant and spouse
$  70.99
Participant and family
$103.55

 

5. What happens after COBRA ends?

  • After COBRA coverage has expired, the Participant and covered spouse may then elect to participate in the PPO $900 Deductible Medical Plan until Medicare age (age 65).  The participant will be responsible for paying the then-full premiums.
  • Participants and covered spouses who have reached age 65 or older with IU Retiree Status may enroll in the IU Blue Retiree Medicare Supplement plan, and continue in the plan by paying the plan’s premiums.
Anthem Blue Retiree Plan
Monthly Retiree Premiums for 2014
One participant
(Retiree or surviving spouse)
$186.61
Retiree and Spouse $373.16

 

6. Can I use my HRA funds to pay for the premiums, deductibles, and co-pays?

HRA funds can be used to cover premiums, deductibles, co-pays, and any medical expense within the meaning of Section 213(d) of the Internal Revenue Code.

Please Note If you are contributing to an HSA while on HDHP COBRA, the HRA can be used for HDHP COBRA premiums, Medicare premiums, Medicare Advantage Plan premiums, COBRA dental premiums and expenses and vision premiums and expenses but cannot be used for medical care costs or prescription expenses until the HDHP deductible has been met for the year.

7. If I have a family status change during the five years I receive HRA contributions under the ERIP, will the amount contributed change?

University’s HRA contribution amounts will not change during the five year benefit period even if the ERIP-2013 Participant has a family status change, (e.g. a marriage) during that period.

8. What happens if I have a family status change under COBRA?

  • A Participant may add and remove family members to medical coverage with a qualifying family status change or during Open Enrollment while covered under COBRA.
  • If a Participant elects the Under Age 65 – PPO $900 Deductible medical plan s/he may cover a spouse or children already on the plan, but will not be able to add dependents to the coverage.

9. I have more questions about my medical care plan options.  Who do I speak to?

For additional questions please contact University Human Resources at the following email addresses: 

  • COBRA questions: Linda Ross at or 812-855-7833
  • IU Retiree Status questions: Karen Hill at or 812-856-4459
  • HRA questions: Danielle Abplanalp at or 812-855-3825
  • General health care plan questions:
G. IU Retiree Status

1. What is IU Retiree Status and why is it important?

IU Retiree Status is recognition given to IU employees who separate from the University after having achieved a combination of a specified age and years of service.  An individual with IU Retiree Status is eligible for certain IU benefits which are separate from retirement income benefits. See the table of age and years of service necessary to obtain IU Retiree Status.              

2. What are the IU Retiree Status benefits other than qualifying for ERIP-2013?

An ERIP-2013 Participant who satisfies the age and service requirements for IU Retiree Status on the separation date will be provided the following additional benefits as long as each plan continues to be offered by the University:

  1. Term life insurance paid by the University equal to $6,000
  2. IU Tuition Benefits paid by the University then-current as provided to full-time employees
  3. Continuation of coverage under an IU-sponsored medical plan by paying the then-current full premium:
    • COBRA continuation in any plan
    • PPO $900 Deductible plan until Medicare age 65
    • Blue Retiree Medicare Supplement plan at age 65 and older
  4. IU Voluntary Benefits

3. I currently do not qualify for IU Retiree Status, but I do qualify for ERIP-2013.  Will I receive IU Retiree Status?

IU Retiree Status requirements must be met on the date of separation.  It is not granted if the age and service requirements are not met on that date.

H. Starting Retirement Income Benefits

1. Will Indiana University make contributions to PERF or to my IU Retirement Plan based on my Income Replacement Payment? 

The Income Replacement Payment is not considered compensation and contributions will not be made to PERF or the IU Retirement Plan based upon it. 

2. Do I have to start drawing my Social Security benefits or my retirement plan income if I leave under ERIP-2013?

Participants do not have to start drawing these benefits if they leave under ERIP-2013 and depending on the personal situation, it may be more beneficial to do so at a later time.  However if a Participant is 70 years old or older s/he may be subject to additional requirements for both Social Security and retirement plan benefits. Please, consult with Social Security, PERF, Fidelity, and/or TIAA-CREF.

3. Will I have enough time to apply for PERF or Social Security benefits since both require up to 90 days or more to process?

One benefit that the Income Replacement Payment provides is time for Participants to transition into retirement and to make decisions as to when it is most advantageous to apply for retirement benefits such as PERF or Social Security.

4. I have questions about my Social Security, PERF, or IU Retirement Plan benefits.  Who do I contact?

Social Security  Contact the local Social Security Administration Office
PERF  1-888-526-1687
TIAA-CREF 1-800-842-2273
Fidelity 1-800-343-0860
University Retirement Program Services in University Human Resources

 

5. I don’t have my PERF ID and/or password, where can I get this information?

If this information has been misplaced, call PERF at 1-888-526-1687 to request a new mailing. When calling, continue to hold the line until a phone representative answers the call.

6. Will Indiana University purchase PERF service credit for me?

Indiana University will not purchase PERF service credit for those who are approved for ERIP-2013.

I. Payment to Staff Employee for Unused Paid Time Off and Compensatory Time

1. What payment will I receive for my unused paid time off when I separate?

ERIP-2013 Participants who are Staff employees will receive a lump-sum payment for accrued but unused paid time-off benefits and compensatory time as of their separation date, in accordance with normal University policies and the same as any other separating employee. The brief summary below identifies the types of paid time-off benefits and compensatory time applicable to different categories of staff employees:

  • Professional Staff
    • Holidays
    • Bonus Holidays, if applicable with PB plan status
    • PTO hours
    • Vacation for PB plan status, up to 200 hours plus number of hours earned in a year
    • Honorary Vacation up to 480 hours, if applicable
    • Sick Bank hours at 25% pay from 152 hours through 312 hours and 50% pay for all hours above 312, if covered by the IU Retirement Plan with 11.25% contributions and if qualified for IU Retiree Status (no pay from 1 hour through 151 hours)
    • Compensatory time for PAO and PAU Staff
  • Support and Service Staff
    • Holidays
    • Vacation hours balance up to a maximum of 872 hours for 30 or more years of IU service.  Based on years of service and University policy
    • Income Protection hours at 25% pay from 152 hours through 312 hours and 50% pay for all hours above 312, if qualified for IU Retiree Status (no pay from 1 hour through 151 hours)
    • Compensatory time

2. Where can I learn more about the pay for unused time off?

More information about pay for unused time off can be found in the University’s Separation Pay Policy.

3. Is pay for unused time off in addition to the ERIP-2013 benefits or does it reduce my ERIP-2013 benefits?

The amount of pay for unused time off is determined under IU’s Personnel Policies. It is in addition to ERIP-2013 and does not reduce ERIP-2013 benefits.

J. Applying for ERIP-2013

1. How do I apply for the ERIP-2013?

  • Applications for ERIP-2013 are to be made on the online application available from July 22 to August 19, 2013 at midnight.
  • When the application form is submitted, the applicant is indicating a desire to voluntarily separate from Indiana University in exchange for ERIP-2013 separation incentive benefits and other considerations described in the ERIP-2013 Plan Document (PDF).

2. I don’t have a computer at home or work, how can I apply?

There are public access computers throughout the University on all campuses which can be used to apply for ERIP-2013 online.

3. I don’t know how to use a computer, is there a paper application?

Employees who need assistance completing the online application should go to their campus Human Resources Office.

4. I would like to withdraw my ERIP application.  How do I do so?

  • To withdraw the application before signing the Separation Agreement, complete the online withdrawal form.
  • Applicants may withdraw their application at any time up to seven days after signing the Separation Agreement by completing the online withdrawal or sending a notice of revocation VIA CERTIFIED U.S. MAIL, ADDRESSED TO:

    University Human Resources Attn:  ERIP-2013
    400 E. Seventh Street
    Room E165
    Bloomington, Indiana  47405

    AND POST-MARKED NO LATER THAN ON THE 8TH DAY FOLLOWING THE DATE OF EMPLOYEE'S EXECUTION OF THE AGREEMENT.

K. ERIP-2013 Review Process

1.  Is acceptance of my application automatic?

Departments and campus administration will review and approve applications based on meeting the following institutional objectives:

  • Reduction in salary/wage and associated benefit costs
  • Redirecting positions to focus on higher priorities
  • Avoiding or minimizing future involuntary reductions in personnel

2. What are the approval steps?

  • University Human Resources will first review the ERIP-2013 application to confirm the employee’s eligibility to participate.
  • ERIP-2013 applications require the following approvals:
    • Initial Reviewer
      • Regional Campus:  the Chancellor
      • IUB or IUPUI Campus:  the RC Head (e.g. Dean)
      • UA units and IU School of Medicine:  the applicable Vice President
    • 2nd Level Reviewer
      • Regional Campus:  the VP for Academic Affairs
      • IUB or IUPUI:  the Campus Provost/Chancellor
      • UA units and IU School of Medicine:  President's office
    • Final Reviewer
      • President’s Office for all
  • If the Initial Reviewer approves the application, then he or she is responsible for providing a statement demonstrating how the ERIP-2013 separation will meet the above institutional objectives, including a statement explaining how any planned replacement will also meet those objectives.
  • Any reviewer may deny the ERIP-2013 application.

     
3. When will I know if my application has been accepted or denied?

In September 2013, applicants will be notified whether or not their application has been approved. If approved, applicants will be provided a Separation Agreement to sign.

4. My application has been denied.  May I ask that it be reconsidered?

If the Initial Reviewer disapproves the ERIP-2013 application, the employee may request reconsideration by that reviewer, who may approve the ERIP-2013 application or uphold the initial decision. There is no further consideration if the Initial Reviewer upholds the initial decision.

5. I have changed my mind and do not want to retire.  How can I withdraw my application?

  • To withdraw the application before signing the Separation Agreement, complete the online withdrawal form.
  • Applicants may withdraw their application at any time up to seven days after signing the Separation Agreement by completing the online withdrawal or sending a notice of revocation VIA CERTIFIED U.S. MAIL, ADDRESSED TO:

    University Human Resources Attn:  ERIP-2013
    400 E. Seventh Street
    Room E165
    Bloomington, Indiana  47405

    AND POST-MARKED NO LATER THAN ON THE 8TH DAY FOLLOWING THE DATE OF EMPLOYEE'S EXECUTION OF THE AGREEMENT.

L. The Separation Agreement

1.  What is the Separation Agreement and why do I have to sign it?

It is a legal document whereby the employee voluntarily separates from the University; unconditionally releases the University from claims; and receives the benefits provided by the ERIP-2013. It is necessary that both the employee and the University fully understand the terms of the agreement and the signatures are necessary to confirm the understanding.

2. What happens if I do not sign the Separation Agreement?  Do I still get the ERIP-2013 benefits?

If the Separation Agreement is not signed, then the ERIP-2013 benefits will not be received.

3. How do I get a copy of the Separation Agreement and when do I sign it?

A copy of the Separation Agreement is included in the ERIP-2013 Plan Document (PDF) which was sent to all eligible employees.  After the application approval process has been completed, University Human Resources will send the employee another copy of the Separation Agreement with instructions on signing and returning it.  University Human Resources will send it based on the employee’s separation date.

4.  Should I seek legal advice before I sign the Separation Agreement?

The Separation Agreement requires the employee to acknowledge that he or she has had the opportunity to review the Agreement with an attorney before signing it.

5. I have changed my mind.  How do withdraw the signed Separation Agreement?

An employee has seven calendar days after signing the Separation Agreement to withdraw from the agreement by completing the online withdrawal or sending a notice of revocation VIA CERTIFIED U.S. MAIL, ADDRESSED TO:

University Human Resources Attn:  ERIP-2013
400 E. Seventh Street
Room E165
Bloomington, Indiana  47405

AND POST-MARKED NO LATER THAN ON THE 8TH DAY FOLLOWING THE DATE OF EMPLOYEE'S EXECUTION OF THE AGREEMENT.

M. Miscellaneous Questions

1. I am currently on an FMLA covered leave of absence and I meet the requirements of IU Retiree Status.  Am I eligible?

All employees, including those on any type of approved leave of absence, who meet the ERIP-2013 requirements, are eligible to apply. 

2. I have told my department that I am going to retire October 31st.  Can I withdraw that notice and apply for ERIP-2013?

An employee may withdraw a previous notice of separation and apply for ERIP-2013 if he or she meets the eligibility requirements.  

3. What are my retirement options if my ERIP-2013 application is denied?

An employee may continue to work or separate under the provisions of the existing personnel polices if the ERIP-2013 application is denied.

4. Can I come back to work for Indiana University?

  • An ERIP-2013 Participant cannot be employed in any University position for 30 days following separation under the plan. 
  • An ERIP-2013 Participant cannot be employed in any IU Staff or Academic position with an appointment of 75% FTE or more for 5 years following separation under the plan.
  • If the ERIP-2013 Participant initiates income benefits from PERF or any IU-sponsored retirement plan, there must not be a written or oral agreement or understanding at the time of separation that the participant will be rehired by the University in any position.

 


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