Overview of Post-Retirement Medical Benefits (PRMB)

The information on this site represents the most current information related to Post-Retirement Medical Benefits (PRMB) at The University of Vermont. If you have specific questions about your situation, please e-mail prmb@uvm.edu. If you are considering retirement, call the HRS Employee Information Center at 656-3150 to schedule an appointment with an Employee Advisor.

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This site communicates information regarding Post-Retirement Medical Benefits (PRMB) for non-represented faculty and staff. In addition to the overarching principles listed below, please note that there is a great deal of clarifying information that is conveyed through the Typical Scenarios as well as in the answers to Frequently Asked Questions.

For a full picture of post-retirement medical benefits at UVM, see the menu at left. If you have questions after reading through the material on this site, feel free to drop a note to prmb@uvm.edu.

Note: Take a look at the Worksheet designed to help non-represented faculty and staff get an idea of their individual cost for post-retirement medical benefits.

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Important: Faculty and staff who are contemplating retirement should make an appointment with an HRS Employee Advisor by calling 656-3150. Those who have retirement savings account(s) through the University should also call their plan provider(s) and set up a time to discuss their financial future.

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Key PRMB Principles

The latest details of the University's Post-Retirement Medical Benefits plan and cost share formulas are described below. Note that the current plan continues eligibility for coverage to spouses of eligible staff.

• Non-Represented Faculty and Staff who, by June 30, 2014, meet the post-retirement medical benefit eligibility criteria in place on their date of hire, and retire on or before June 30, 2014, are eligible to participate in the University's post-retirement medical benefit under the cost-sharing formula in effect on June 30, 2011. (See the clarification below regarding the nature of coverage.)


• Non-Represented Faculty and Staff who, by June 30, 2014, meet the post-retirement medical benefit eligibility criteria in place on their date of hire, but do NOT retire on or before June 30, 2014, will be eligible to participate in the University's post-retirement medical benefit when they do retire, and their premium contribution will be based on their age as follows: those with pre-65 coverage will pay the percentage of premium indicated in Table 1; those with post-65 coverage (the University's Medicare Supplement Plan) will pay the percentage of premium indicated in Table 2.


• Non-Represented Faculty and Staff who were hired on or before December 31, 2011 who do NOT meet the post-retirement medical benefit eligibility criteria in place on their date of hire by June 30, 2014, will be eligible, when they reach age 65 and 15 years of benefits-eligible service, to participate in the University's Medicare Supplement Plan at the premium contribution rate indicated in Table 2. Individuals in this category who choose to retire before age 65 will be eligible for pre-65 coverage, but they will be responsible for 100% of the premium. At age 65, these individuals will become eligible for the University's Medicare Supplement Plan, but they will be responsible for 100% of the premium.


• Non-Represented Faculty and Staff who, by June 30, 2014, do NOT meet the post-retirement medical benefit eligibility criteria in place on their date of hire, but will have reached 15 years of benefits-eligible service by June 30, 2014, will be eligible for the University's post-retirement medical benefit when they reach age 62, and they will be responsible for 50% of the premium. At age 65, these individuals will become eligible for the University's Medicare Supplement Plan, and will pay the percentage of premium indicated in Table 2.


• Non-Represented Faculty and Staff who are hired on or after January 1, 2012 will be able to participate in the University's Medicare Supplement Plan when they reach age 65 and 15 years of benefits-eligible service, but they will be responsible for 100% of the premium. These new employees will be eligible for a Voluntary Employee Beneficiary Association (VEBA) plan, which (after one year of service) will include an annual contribution from the University of $1,150 per year.


• Currently-retired employees will continue to be eligible to participate in the University's post-retirement medical benefit under the cost-sharing formula in effect on June 30, 2011.

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Clarification: It should be understood that retired, non-represented faculty and staff who reach age 65 are no longer eligible for the Active Plan, but may be eligible for the University's post-65 Medicare Supplement Plan.

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Voluntary Employee Beneficiary Association (VEBA)

The VEBA is a tax-exempt savings account with investment options similar to a 403(b) account. The following guidelines will apply:

• VEBA proceeds may, after age 55, be used to pay health insurance premiums and eligible medical expenses.
• Staff will be eligible to retain the University’s contributions and associated earnings after 15 years of service.
• Staff may contribute their own after-tax dollars to a VEBA, if they so desire. (Personal contributions and associated earnings belong to the employee and are transferable.)
• The University will not make any VEBA contributions for spouses, but the proceeds of the account may be used for dependent health insurance premiums and eligible medical expenses.
• Staff who were hired on or before December 31, 2011 may contribute to a VEBA, but the University will not make contributions on their behalf.
• More information on the VEBA will be available once a plan vendor has been selected.

Last modified May 04 2012 08:48 AM