Management Retiree Mailing Re: Medicare supplemental plan changes

[Brown Widow]

Did everyone receive that packet in the mail yet? I don't see it being discussed. It will be a voucher system to buy your own supplemental policy instead of what was current practice.

I'm not Medicare age, but they made it clear that under-Medicare age retirees/spouses would be receiving information on health care plans soon.

This has me very nervous. Am wondering if anyone has heard what the non-Medicare changes will be? Being in a group plan, we all had the same coverage for the same cost. If we are cut loose, those with pre-existing conditions will not have any DDB go as far if we have to seek our own health insurance.

Thank you for any information.

Brown Widow

 

[longupser]

Does anyone know how bad the changes to UPSers retiree health plan is ?
. Management insurance costs have been getting worse since 1993.

 

[longupser]

Very sorry for your loss. May I ask how old your husband was ? UPS has told us the aveage UPS Management retiree is dead by 61 !!!!

 

[hembone]

Very sorry for your loss. May I ask how old your husband was ? UPS has told us the aveage UPS Management retiree is dead by 61 !!!!

I believe "brown widow" is just a term because UPS management has to work so many hours they are never home. I hope I'm right.

 

[cheryl]

Did everyone receive that packet in the mail yet? I don't see it being discussed. It will be a voucher system to buy your own supplemental policy instead of what was current practice.

I'm not Medicare age, but they made it clear that under-Medicare age retirees/spouses would be receiving information on health care plans soon.

This has me very nervous. Am wondering if anyone has heard what the non-Medicare changes will be? Being in a group plan, we all had the same coverage for the same cost. If we are cut loose, those with pre-existing conditions will not have any DDB go as far if we have to seek our own health insurance.

Thank you for any information.

Brown Widow

My mom also received one of these mailers last week and she is concerned about it. She wasn't able to figure out exactly what was changing so I'm going over to read through it in the next day or 2 and see if I can help her figure it out.

Very sorry for your loss. May I ask how old your husband was ? UPS has told us the aveage UPS Management retiree is dead by 61 !!!!

My UPSer dad died at 57.

 

[preload1]

Very sorry for your loss. May I ask how old your husband was ? UPS has told us the aveage UPS Management retiree is dead by 61 !!!!

Incorrect. The average management retiree is dead at 62 not 61. Seven years after you retire at 55. I retired at 56 1/2 in 2010 after 30 years. Tick, tick, tick, tick.

 

[Brown Widow]

I checked back once and saw no responses, so forgive me for the late answer. I am a widow and my UPS-retiree husband passed away at age 70. It sounds like he was lucky, although you couldn't prove it by me. I've always wondered how many pass away from specific cancers due to exposure to diesel fumes.

Received the Medicare supplement packet mailing. What the heck? They are only allocating less than 2000.00 to purchase insurance in some RRA (??) account? What is happening here? I don't even know what this account is as we had a defined dollar benefit when my husband retired.

I'm not Medicare age, so have not received my packet yet, but this doesn't bode well for anyone.

Someone please tell me I've misunderstood the packet. Has UPS changed that much over the years that they are throwing their retired employees and spouses to the wolves?

 

[Brown Widow]

Addendum to my previous post:

Talked with the agency (Aon Hewitt Navigators) who are doing the phone conferences with Medicare aged management retirees. It IS as I suspected. UPS is putting a flat amount of 1974.00 into an RRA for both Medicare Supplemental policies and Medicare Part D. The person I spoke with said there are many plan options, but acknowledged that this is a dramatic benefit cut for management retirees. I don't know that this is dramatic for someone from this year to the next, but it sure is a change from the benefits my husband had when he was alive. Sad to think that the cost of his care while fighting cancer may now be a drain on others in a similar situation, under this new system. I hope there really will be decent options for a good plan at that amount of money.

Wanted to update all who may be interested. So it goes....

 

[Catatonic]

Incorrect. The average management retiree is dead at 62 not 61. Seven years after you retire at 55. I retired at 56 1/2 in 2010 after 30 years. Tick, tick, tick, tick.

Actually, the last time I talked with someone with access to the numbers, it was 73 years of age and an average of 17 years of paid defined benefits. That was about 8 years ago so I would guess the age at death is a little older now.
Still seems to be a bit low compared to the average age of death for the rest of the US.

So don't be listening to the tick, tick, tick. Get out there and find something you love to do and make that your purpose in life.

 

[lhugh]

Well so far my experience suck with this whole thing. Aon set up an appointment, but never called. I finally go in touch with my 'counseler' whose lack of knowledge is apparent, but I can't contact anyone at Aon or UPS to get any information or to get me in touch with a knowledgable counseler. I do kno it is probably a death sentence for me - my co pay on my prescription will go from $80 per qtr to $800 per month....not quite what was promised when I was putting in 17 hour days. Like to hear some other experiences ya'll have had.

 

[island1fox]

Incorrect. The average management retiree is dead at 62 not 61. Seven years after you retire at 55. I retired at 56 1/2 in 2010 after 30 years. Tick, tick, tick, tick.

Wow,
Do not know where these numbers are coming from but I am 62 , retired at 55 and if I may say so myself I am in excellent physical condition.
I eat and drink in moderation, exercise regularly and stay on top of yearly physicals.
I worked and lived in numerous Regions and Districts and know hundreds if not thousands of partners who were older, in worse physical shape that have been long retired.
While I have many interests I enjoy reading the retiree pulication every month"Legacy" There is a monthly list of all new retirees as well as those who have "retired " from this earth. While I have seen a very few names of the people I knew---there are huge numbers of people that have to be well into their 70's, 80's and nineties. I have seen many UPS retired people get "younger " as they are no longer under the extreme stress.
I certainly have a tough time believing in the 61 or 62 number as the average.
Bottom line for sure --eventually we all go !!

 

[FracusBrown]

Someone please tell me I've misunderstood the packet. Has UPS changed that much over the years that they are throwing their retired employees and spouses to the wolves?

Yes. No need to exclude current employees. It's sad to say, but everyone not protected by a union is getting shafted.

 

[RoyalFlush]

Can retirement benefits be reduced after vesting?

 

[Catatonic]

Can retirement benefits be reduced after vesting?

Short answer - Yes.

Specific question?

 

[RoyalFlush]

Short answer - Yes.

Specific question?

http://aging.senate.gov/crs/pension7.pdf
[FONT=PalatinoLinotype,Bold]

1. Anti-cutback Rule​

[/FONT]

ERISA Section 204(g) prohibits plan amendments that eliminate or reduce benefits alreadyaccrued by plan participants.​

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58 This prohibition is commonly referred to as the “anti-cutbackrule.”59 Benefits subject to the anti-cutback rule include basic accrued benefits, as well as anyearly retirement benefits, “retirement-type” subsidies, and other optional forms of benefits that anindividual who has met certain requirements (as defined by the plan) is eligible to receive.However, the anti-cutback rule does not prevent a plan from freezing accrued benefits, reducingthe rate at which benefits will accrue in the future, or eliminating future benefit accruals​

altogether.

 

[rod]

Can retirement benefits be reduced after vesting?

You've never heard the old saying about the only 2 things in life that are guaranteed are Death and Taxes? Have you been living under a rock?

Do you live under a rock? - GEICO Commercial - YouTube

 

[Catatonic]

http://aging.senate.gov/crs/pension7.pdf

1. Anti-cutback Rule​

ERISA Section 204(g) prohibits plan amendments that eliminate or reduce benefits alreadyaccrued by plan participants.​

58 This prohibition is commonly referred to as the “anti-cutbackrule.”59 Benefits subject to the anti-cutback rule include basic accrued benefits, as well as anyearly retirement benefits, “retirement-type” subsidies, and other optional forms of benefits that anindividual who has met certain requirements (as defined by the plan) is eligible to receive.However, the anti-cutback rule does not prevent a plan from freezing accrued benefits, reducingthe rate at which benefits will accrue in the future, or eliminating future benefit accruals​

altogether.

The pension then is what you were referring to - I have not heard of defined pension benefits being cutback unless the pension funds became insolvent.

The UPS Retiree Health Plan is not a pension benefit and is not covered by ERISA and it changes almost constantly.

 

[rustyr95]

you should be nervous.they have outsourced retiree healthcare to aon-hewitt. they can not handle the job. they blow off appointments and give a lot of lip service, that's the only service they give. my ups coverage expires on 01/01/2012 and in six weeks they havn't even processed my application. i guess when january comes i won't have coverage. shame on you ups.

 

[cheryl]

My mom is a widow of a UPSer, non union. She is in the US and in her mid 70's.

Her insurance this year was dropped from UPS medigap full coverage to UPS will give you $1247 US and you can go out onto the free market and buy your own insurance.

Tony and I read through the info she was sent and sat in on the phone calls from aon. We basically just tried to assist her with the transition. Tony and I both thought that the aon reps were knowledgeable and that the process went fairly smoothly. A couple of my mom's friends got very confused by the aon phone calls and called Tony to ask which type of policies we had chosen.

My mom's friends were really frustrated by the entire process. If you're not really comfortable with the explanations from the aon rep you get, or dealing with computers, faxes and email, the transition may be extremely confusing and annoying.

This is just my own personal observation of what I believe my mom's friends thought about the whole aon medigap insurance transition. Your mileage may vary.

 

[Dahl Messenger]

I have given up on AON, they had very little expertise. AON had only 3 of 10 in state Medicare authorized companies signed up. These appeared to be the most costly. I have signed up with another in-state company, and can only hope that I don't have trouble getting my spending account money which will be held by AON. Though more coverage, it will be costing me aprox 2500 a years for me and my wife in 2012.....wonder what that number will be in 10 years......least we can get some pressure from those working to have UPS ante up a little more each year................