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What
is the Emeriti Health Solutions Program?
Emeriti Health
Solutions is a new benefit program that provides tax advantaged
savings accounts to help employees pre-fund medical expenses in
retirement along with several retiree health insurance options
that will complement Medicare and fill the gaps in coverage.
Why
is this an Important Benefit?
Medicare currently
covers between 50-60% of healthcare costs in retirement and that
means reitrees must pay the remainder. According to actuarial
projections, a couple retiring at age 65 in 2006 could expect
to spend $175,000 for healthcare costs over their life expectancy,
while a couple retiring in 25 years could expect to spend $560,000.
The earlier
you start saving and pre-funding retirement expenses the better.
Who
is Eligible to Participate?
Regular
faculty and staff, who are at least age 21, with appointments
of .5 FTE or greater.
What
are My Benefits:
Two Tax
Advantaged Savings Accounts:
- Employer
Contribution Account: Beginning at age 35 and following
completion of one year of employment, Seattle Pacific University
contributes the same monthly amount to all eligible participant accounts.
As of July 1, 2007, the amount was $67/mo. Employer contributions, earnings and distributions are completely
tax free. You must call 1-866-Emeriti to assign eligible
dependents to your account.
- Employee
Contribution Account: Beginning January 1, 2007, eligible
employees may elect voluntary contributions to an employee savings
account. Employee contributions are made on an after-tax basis
via payroll deductions. There is no limit to the amount you
can contribute to your employee contribution account. Participants
may continue contributions following retirement or termination
of employment. Earnings and distributions are tax free. Employees
must call 1-866-Emeriti to enroll in payroll deductions.
Savings
accounts may be used to pay for retiree health insurance premiums
and/or reimburse participants for qualified out-of-pocket
medical expenses in retirement. Accounts valued at less than
$5,000 may be used to reimburse qualified medical expenses
upon termination of employment. Accounts greater than $5,000
may be used to reimburse qualified medical expenses beginning
at age 55. Both employer contribution and employee contribution
savings accounts are serviced by Fidelity Investments.
Emeriti
Health Insurance:
Employees
who retire from SPU at age 60 with seven (7) years of continuous
service or age 65 with five (5) years of continuous service
are eligible for coverage under the Emeriti insurance. This
program provides access to Medicare supplement and dentala programs
that are specifically designed to meet the insurance needs of
retirees, beginning age 65 and above, with no health underwriting
requirements. A pre-65 medical insurance program is also available
to spouses and dependents of eligible retirees. Aetna Life Insurance
Company is the provider of these insurance plans.
Does
the Emeriti Program Replace the University's 401(a) or 403(b) Accounts?
No, the Emeriti
Accounts are completely separate.
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