Your Guide To Retirement

1. Your Guide To Retirement Human Resources Benefits Department

2. AGENDA Introduction Retiree Benefits Prudential (401K/457) RRB (Railroad Retirement Board) MTA Defined Benefit Pension Plan WELCOME Tracy-Ann Jeffers Gladys Rodriguez Carmen Williams Glenn Phillips Theresa Jasey Bryan Shortino Margaret Henry Barbara Roche

3. Quotes The question isn’t at what age I want to retire, it’s at what income. – George Formen Don’t simply retire from something; have something to retire to. – Harry Emerson Fosdick

4. Retiree Medical Benefits

5. Retiree Benefits In which Retirement Plan are you enrolled in? The MTA Defined Benefit Pension Plan or Employer 401K Plan “ Formerly The Vanguard Plan”

6. Minimum age and service required to receive Retiree Medical Benefits MTA DB PLAN 55/10 60/10 55/30 Employer 401K * 60/15 55/30 * Formerly The Vanguard Plan

7. Retiree BenefitsVesting You must have at least 10 years of either MNR service or a combination with other MTA Agency Service to be eligible to receive retiree medical benefits Military Buyback, NY City or Other State Agency service does not apply towards medical vesting

8. Retiree Medical Benefits You must be enrolled in a medical plan prior to retirement to be eligible to continue coverage as a retiree Metro-North will pay 100% of the medical premium

9. Retiree Benefits Who is eligible to be covered: Spouse/Domestic Partner Children between the ages of 19 – 25 with student verification Children between the ages of 19 – 25 without student verification if you are enrolled in Connecticare or HealthNet. * Eligibility coverage for overage dependents is subject to change in 2011.

10. Retiree Benefits Prior to Age 65 What happens if I become disabled? If you become disabled prior to Age 65 You MUST enroll in Medicare Part A and B effective the first month it is offered to you

11. Retiree Benefits Prior to Age 65 Medicare Part A and B will become the primary insurance and your medical plan will become your secondary insurance

12. Retiree Benefits Prior to Age 65 What if my dependent becomes disabled prior to 65 or is disabled at the time of my retirement? If your dependent becomes disabled prior to age 65 or is disabled at the time of your retirement your dependent must enroll in Medicare Part A and B.

13. Retiree Benefits Prior to Age 65 Medicare will become the primary insurance and your medical plan will become the secondary insurance for your dependent

14. Retiree Medical Benefits at Age 65 Non Represented Employees If you are 65 at the time of retirement your medical coverage will continue, however you must enroll in Medicare Part A and B.

15. Retiree Medical Benefits at Age 65 Non Represented Employees Medicare will become your primary coverage and your medical plan will be secondary.

16. Retiree Medical Benefits at Age 65 Non Represented Retirees All medical bills are submitted to Medicare first and then to your medical plan second You do not need to enroll in Plan D

17. Retiree Medical Benefits at Age 65 Represented Employees If you are 65 at the time of retirement your, benefits will end at the end of the month in which you retire. You must enroll in Medicare Part A and B.

18. Retiree Medical Benefits at Age 65 What happens to my coverage when I reach age 65? Represented Employees Retiree medical coverage will end at the last day of the month you attain age 65

19. Retiree Medical Benefits at Age 65 Represented Employees You must purchase a supplemental plan to supplement Medicare Part A and B You must also purchase a prescription plan known as Part D

20. Retiree Medical Benefits at Age 65 Medicare Part A covers inpatient hospital admission Medicare Part B covers Major Medical expenses

21. Retiree Medical Benefits at Age 65 Represented Employees ONLY If your spouse is less than age 65, when you lose coverage, your eligible dependents will have two options:

22. Retiree Medical Benefits at Age 65 Enroll in HIP of NY (an HMO), available in the counties of NYC, Westchester, Nassau or Suffolk. 100% of the cost will be paid by Metro-North; OR 2. Enroll in a health plan of your choice. You must pay for the coverage first and then submit proof of payment every month. MNR will reimburse up to the amount it would have paid for HIP

23. RETIREE BENEFITS DENTAL AND VISION BENEFITS

24. Retiree Benefits Dental/Vision Represented Employees Your dental/vision benefits will end at the end of the month in which you retire You may elect to continue coverage under COBRA Consolidated Omnibus Budget and Reconciliation Act (COBRA)

25. Retiree Benefits Dental/Vision Represented Employees COBRA COVERAGE You can elect to continue dental and vision for up to 36 months You will be required to pay the entire premium plus a 2% administrative fee Consolidated Omnibus Budget and Reconciliation Act (COBRA)

26. Retiree Benefits Dental/Vision The 2010 COBRA cost of dental coverage: Individual coverage $ 51.60 Family coverage $120.87 The 2010 COBRA cost of vision coverage: - Individual or Family $10.85 COBRA rates are subject to change yearly

27. Retiree Benefits Dental/Vision You can elect either dental, vision or both under COBRA Also you can elect to continue individual or family coverage.

28. Retiree Benefits Dental/Vision Non-Represented ONLY Dental/Vision will continue for you and your eligible dependents

29. Retiree Life Insurance Benefits LIFE INSURANCE

30. Retiree Life Insurance Benefits Non Represented Group life insurance is reduced to $5,000 You will given the opportunity to convert the balance of your active group life insurance to an individual policy

31. Retiree Life Insurance Benefits Represented Employee If you are enrolled in the EMPLOYER 401K PLAN “ Formerly The Vanguard” Your retiree life insurance is $2,000 You will be given the opportunity to convert the balance of your active life insurance to an individual policy

32. Retiree Life Insurance Benefits A family member should notify the Benefits Department at 212-340-2217, upon your death

33. ONCE YOU HAVE RETIRED Notify the Benefits Department if you Change your address

34. ONCE YOU HAVE RETIRED If you have a life event. You must call the Department of Civil Service for the appropriate forms. Examples of a life event: marriage, divorce, death of spouse/domestic partner, newly acquired dependent, etc.

35. EMPLOYER 401K Retirement is at age: 60/15 55/30 62/5 All disbursements are governed by the IRS regulations.

36. RETIREMENT

37. RETIREMENT DON’T FORGET TO: Contact the Railroad Retirement Board to let them know you are retiring.

38. Who to call If you have any questions concerning your retiree benefits, call 212-340-2217 for the following: Retiree Medical Information COBRA Information Death Claims – Life Insurance Dependent Insurance Reimbursement

39. Who to Call MTA DB Pension Plan 646-376-0244 Prudential 877-756-4682 Employer 401K 401K/457 Plans RRB 877-772-5772

40. Keep Busy in Retirement Some questions to ask yourself: What hobbies do I enjoy or want to learn about? Do I want to volunteer? Do I want to travel? Do I want to move or downsize to a condo or apartment? Do I want to relocate or stay local?

41. Quotes Now its time to have FUN…sure we have aches and pains but there is still so much we can do to live life as its meant to be in retirement.

42. It’s Time to Start Planning