If you are working when you turn 65, you have the option to purchase Part B (and A if you don’t have enough quarters of contribution). If you choose NOT to purchase, you have until 8 months after you stop working past age 65 to get Medicare A & B without penalty. If you wait beyond those 8 months, you will incur a penalty when you finally do apply for Medicare B.
My in-laws had Medicare A & B, as well as federal health insurance as FIL was federal retiree. It really helped with dialysis and hospital bills. They were glad to have all the coverage they did. We are following suit and got H’s Medicare B within 8 months after he stopped working, as well as continuing the federal health insurance. H got Medicare A shortly after he turned 65.
H has some friends who have opted to just rely on their federal insurance and NOT get Medicare B–it is a choice. They are staying as healthy as they can. We figure medical costs is something we prefer to have more coverage instead of less.
Additionally, if you don’t have a Rx drug plan at least as good as Medicare D, you can be subject to a late enrollment penalty with that as well, if you decide you want to purchase it. Your insurer/employer is required to provide you with a letter explaining whether any insurance you have with them is as good as Medicare D, exempting you from having to buy a separate coverage and avoiding the penalty. http://www.medicare.gov/part-d/costs/penalty/part-d-late-enrollment-penalty.html
Hope the above is helpful. Some HR departments are a bit muddled in all of this, but it isn’t too confusing if you carefully read the pertinent rules, laws & regs. They are written pretty clearly.
I researched Medicare a LOT before H turned 65. He continued to work for years after that, so it confused his insurer who would deny his claims and say that Medicare B SHOULD be primary. I’d have to call them and say that he only had signed up for Medicare A because he was still working and the insurer remained primary. It was many months of bouncing medical bills, but the providers knew it wasn’t our fault. Once H was on Medicare B, things got less confusing for providers (tho I still do not qualify for Medicare and am covered solely by our medical insurance).
Dental plan is not covered by Medicare but it’s a good idea to spend the FSA money the year before retirement to fix your teeth. This year my husband has high dental activities, all of a sudden a lot of teeth have problems. Luckily, I changed to high benefit plan and did put some money to FSA this year in anticipation.
Federal employee plans have as good or better Rx than Medicare D, as far as I can tell. We have been very pleased with our FEHB plan and get a letter from our insurer/HR confirming that our plan meets or exceeds Medicare part D.
I can’t believe this thread is on the fifth page, horrors!
My union is putting on a retirement seminar this week, that I’m attending. I’ve heard people say to start going to these at least five years before you intend to retire. How can it all be so complicated?
Every time I go to the seminars I am more confused. busdriver-“I can’t believe this thread is on the fifth page, horrors!?” confused- what are your referring to?
@rockymtnhigh, I was referring to the fact that it had slipped onto the fifth page of the café. I don’t think I’ve seen it off the first or second page since it was started. Gotta keep it current!
I guess maybe you have to go to many seminars to finally get it. Or perhaps if they just put a decent guide in print, that would be helpful.
You know I kid you! :) And I admire Jack Bogle greatly.
@busdriver11 , in all seriousness, if you work for a large corporation, the “relevant documents” that determine your retirement decisions are either in the employee handbook or the Summary Plan Description(s), much as it might pain one to read them.
Edited: I realize that you are referring to a retirement planning step-by-step guide. But reading that when you have company documents to read first might not make sense.
Okay, you got me with Mr. Rogers. My D and I adore him. I was beside myself when he died while she was in grade school and still watching the reruns of his show. I still occasionally ask her to sing “Tree, tree, tree.”
I think, in my companies case, there are a number of ways to make your actual retirement better for yourself. This is information that the company would not be interested in providing. I think they provide the standard instructions of what to do, but not ways to game it. The union is pretty informative in that respect. For example, retire Oct 14th, you get no additional vacation. Retire Oct 15th, you get the entire years worth of vacation (a large difference in your final check). Not that the company is trying to hide that information, but I don’t know that they are interested in making sure that you know it.
I am hoping they have a guide that is written in plain English, and spells out the important stuff. I fear that the companies guide (like many of our documents) is dry reading, unclear, and open to interpretation.
@busdriver11, having the union as your advocate is a great advantage. The example you provide sounds like an accrual issue. And, maybe some understand it, and some do not.
Also, no employer will spell out ways in which employees can game anything. But they will be held liable if they misrepresent information or omit something. Additionally, you’ll note the “subject to change” language in all employer documents.
Another good place to look would be relevant descriptions in the Annual Report and its related documents. The 10-K will have material agreements filed as exhibits.
Specific retirement pertaining to the company is very useful. Like one company I’ve worked at, if I take 100% spousal benefit and my spouse goes before I do, my benefit will revert back to 100% single annuity and not joint annuity. I had to ask tons of questions to get that out of the class that I normally wouldn’t have gotten reading through the plan. That’s if I don’t fall asleep first while reading it.
And to add to @DrGoogle 's point, the time you can best figure out the questions TO ask of your employer’s representative is after you’ve slogged through the documents and uncovered a tidbit like the pay-for-vacation-accrued issue. Maybe that’ll take 5 years, maybe not.
Also, it’s possible that there is a forum for your co’s current and prospective retirees. I was helping a friend’s husband when he was negotiating a separation agreement last year and he was not aware that there is such a place for his company. If it’s a large enough employer, you might be able to find one.
