Retiree Health Coverage Payments

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Re: Retiree Health Coverage Payments

Postby mjpugh » Wed Apr 19, 2017 8:32 am

I just want to understand correctly:

Avaya does not pay for ANY healthcare (either directly or through a healthcare reimbursement account) one you are 65. Is that correct?
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Re: Retiree Health Coverage Payments

Postby Vbaumwald » Wed Apr 19, 2017 8:40 am

That was my understanding as well.... I am about to turn 61 and was hoping the HRA would continue till 65 but then I thought everything stopped as well..but I'd love to hear others confirm the same understanding...at least for management..I realize craft may be different because of union contracts
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Re: Retiree Health Coverage Payments

Postby daglover » Wed Apr 19, 2017 10:34 am

I am almost 67......when I turned 65...Avaya dropped my health coverage....they did pay a small ($500) towards my part b medicare....but that was it.
My wife was still covered as she was younger. We kept and still have dental coverage and my life insurance. This year I received my first $500 for 2016.
Last enrollment period they dropped my wife from the health care and offered us both an HRA. The HRA covers the cost of my supplemental and my part d
drug coverage. My wife picked up health care at her job as Avaya's One Exchange was way out of line price wise.

Another note about the bankruptcy, just because Avaya stated they want to continue the qualified pensions does not mean the court well allow it. The creditors can demand they be discontinued. Don't count those chickens till they're hatched......
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Re: Retiree Health Coverage Payments

Postby mjpugh » Wed Apr 19, 2017 10:59 am

Very Interesting.

I am 66 and retired as a salaried employee in 2006.

At that time Avaya offered a health care benefit of 75% max (I had 31 years) of the THEN CURRENT premium. My husband was employed at the time, so we moved all our insurance to his company. It was much less expensive.

A few years ago at annual enrollment time, I got a letter stating that changes were being made to the health care benefits and if I didn't enroll in Avaya health care, I could not ever enroll.

As I recall it went on to say that once you turned 65 Avaya medical coverage would end for all because competitive rates are available in the health care exchange market. It referenced OneExchange and Towers Watson.

When I turned 65 I tried to use Towers Watson as a resource for Medicare supplement providers and gave up. Avaya said I was eligible to use their site, but Towers Watson never authorized me. I gave up and just found my own coverage.

I do not get ANY subisdy for Medicare Part B or Part D.

I hope others will share their situation/experience so that I can understand what the real policy is.

Does anyone have a copy of the letter I am referring to? Not sure if I can track down the one they sent me.
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Re: Retiree Health Coverage Payments

Postby cer » Wed Apr 19, 2017 11:07 am

As a salaried employee, last June @64yo I took a package that included medical coverage until Feb and was told Avaya no longer provides health insurance once you turn 65. Dental and Vision plans are no longer available. They offer an annual amount of approx $1000. Fortunately I took the lump sum from the Avaya Salaried Savings Plan and am owed nothing from Avaya. My cobra payments are $650 from Feb-May when medicare begins.
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Re: Retiree Health Coverage Payments

Postby financegrunt » Wed Apr 19, 2017 11:18 am

To daglover.

Concerning your comment, “Another note about the bankruptcy, just because Avaya stated they want to continue the qualified pensions does not mean the court well allow it. The creditors can demand they be discontinued. Don't count those chickens till they're hatched”

You are totally incorrect in your understanding as to how qualified pension plans may be terminated and/or are handled in a federal bankruptcy proceeding.

Before you make “pronouncements” that will just unduly raise the anxiety of some retirees please take the time to research and understand the process which includes The Employee Retirement and Income Security Act, enacted in 1974 and commonly referred to as “ERISA, and the critical role of the Pension Benefit Guaranty Corporation.

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Re: Retiree Health Coverage Payments

Postby daglover » Wed Apr 19, 2017 11:52 am

to financegrunt: I hope you are right....but the judge has the final say......if the PBGC takes over the pensions, nobody well be happy, especially those who were offered and accepted early retirement.......
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Re: Retiree Health Coverage Payments

Postby djblondin » Wed Apr 19, 2017 12:07 pm

per PBGC, since my pension accumulation was frozen in 2003, it's actually fully covered by PBGC limits (though certainly for the sake of others, I hope it doesn't come down to PBGC). I don't have health care coverage thru Avaya since I had to invoke immediately upon leaving in 2013 -- and had coverage through my next employer.
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Re: Retiree Health Coverage Payments

Postby nennikathi » Thu Apr 20, 2017 6:59 pm

When I attempted to sign up for the 2016 coverage year I was denied coverage by the fine folks at ____ (fill in the blank as to who was handling it at the time). Because I live in another country and had a mail forwarding address they refused to accept my money for 2016 (I have lived away since 2009 and they were QUITE happy to receive the premiums with no outlay on their part whatsoever for 7 years). I assumed I would be responsible for the penalty for not having health insurance (my husband had turned 65 in 2015 and I would turn 65 in 2016) from Jan to April. My accountant advised it would not be that substantial as I would have coverage through Medicare in May. Well, when I received my 1095C Avaya claimed they had me covered the entire year. No penalty on my part (and no real outlay on theirs). Still, I cannot use my Medicare here so would need to return to the US for medical coverage, but medical is fairly inexpensive here and (knock wood) I am still in good health.
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