Is there anyone who can make sense of this.. its quite confusing to me, and the stupid HR lady i talked to has NO CLUE.. It reads to me, that i i get a certain credit to help with medical premiums if i retire etc.. However, what confused me with this was its not connected to our companies typical retiree medical that states you need to be 50 years old... The way i read this, as long as i have 10 years in service, this is what i get when i leave...
If this is correct, i could leave anytime and still get something retiree benefit medical wise... I dont have to wait till im 50, which means that i dont need to wait, since i will be at my Target FIRE accumulation within 18 months.. at 47 years old WHOOhooo.. if im reading this right
from my work HR retiree medical site.
If you were hired April 1, 2004 or later
Full-time and part-time employees hired April 1, 2004 or later by a XX employer who offered coverage in the XX Retiree Medical Plan are eligible to participate in the XX Retiree Reimbursement Account Program. Note: One of the XX employers who do not offer coverage in the XX Retiree Reimbursement Account Program is XX GBS Americas. Eligible employees of this company who are/were hired on or after April 1, 2004, will be eligible only for the medical portion of the XX Retiree Medical Plan.
A retiree reimbursement account (RRA) is designed to help eligible retirees who are not eligible for a reduced premium contribution pay for any qualifying medical expense. If you are eligible to participate in the XX Retiree Medical Plan when you leave XX, your accumulated RRA credits can be used to reimburse you for any “qualifying” medical expense. A medical care expense under an RRA will be considered to be “qualifying” if it meets federal tax law standards. Examples are health plan premiums, deductibles, coinsurance and copays.
You will receive an annual “credit” in your RRA based on your age and years of service, with the term “annual” meaning the plan year. This “credit” is actually a bookkeeping entry, and there is no vested ownership in such entries by any participant. You do not make any contributions to your RRA, and it accrues no interest.
Once your RRA is depleted, you will no longer be eligible for reimbursement of any qualifying expenses; however, this would not impact your eligibility for coverage under the medical portion of the XX Retiree Medical Plan.
Annual credits accumulated from your date of hire range from $7,500 to $10,500 as shown in the chart below. Your points determine the amount of your annual credit.
Points = Age + Years of Service
Annual Credit
Less than 40
$7,500
41 – 50
$8,250
51 – 60
$9,000
61 – 70
$9,750
71 or more
$10,500
Note: Monthly prorating applies when you are hired by, or if you leave, BXXin the middle of a plan year. In order to get credit for a month, you must work the entire month in order to obtain credit. For example, if your final day of work is January 31, you will receive credit for January, but if your final day of work is January 15, you will not receive that month's credit. Also, the monthly credit will be based on your above point calculation as of the end of the month, even if the applicable point calculation changes in the middle of the month.
