Bush signs railroad pension legislation
                   Retirement Insurance Information

Railroad Retirement and Survivors' Improvement Act of 2001
Bill # S.697

Changes to the Railroad Employees National Early Retirement

Major Medical Benefit Plan (GA-46000)

Recent changes to the Railroad Retirement Act will allow employees who are 60 years old with 30 or more years service to retire at age 60 with no reduction in their Railroad Retirement Board annuity.  An important consideration for anyone thinking about retirement is health coverage after retirement.
New Eligibility Rules  Along with the changes in the Railroad Retirement Act, the labor organizations representing railroad employees have negotiated a change in the eligibility rules under the Railroad Employees National Early Retirement Major Medical Benefit Plan (GA-46000), administered by United Healthcare.
Prior to January 1, 2002, GA-46000 required an employee to retire on or after reaching age 61. After this date, you can retire at age 60 and will be eligible for coverage under this plan if you meet the following eligibility requirements.

For Age Annuitants: 
You apply for a 60/30 annuity for which you are eligible
On or after the date you reach age 60, or Anytime during the three months before  your 60th birthday, provided you continue working into the month before the month  in which you turn age 60.

On the day before you apply for your annuity. you must be covered (other than under COBRA) under the Railroad Employees National Health and Welfare Plan.

 For Disability Annuitants   You have a current connection with the railroad industry, You have applied for a disability annuity to which you are entitled, You are covered under the Railroad Employees National Health and Welfare Plan (other than by COBRA) on the day before the latest of the following dates:

The date you reach age 60,
The date you became disable,
The date your railroad service equals 30 years.

 

In addition to the changes in eligibility rules, the lifetime maximum under GA-46000 will be adjusted each year by the medical cost component of the Consumer Price Index. The Lifetime Maximum for 2002 will be $79,000.

If you retire and are eligible for GA-46000, you can also purchase supplemental coverage under GA-23111, Plan E. Generally, Plan E pays 70% of the expenses not paid under GA-46000 and has a lifetime maximum of $200,000. The current premiums for Plan E are $120.00 per month for the employee and $120.00 per month for all eligible dependents. Adjustments to cost of Plan E are generally effective June 1st of each year.

Enrollment Is Necessary.

When you retire, your railroad will not report you to United Healthcare as a retiree eligible for GA-46000. You must enroll yourself and your family with United Healthcare. You can do this in two ways: You can purchase GA-23111, Plan E: Your eligibility for GA-46000 will be verified when your enrollment for that coverage is processed. 10 cards for both GA-46000 and GA-23111 will be sent to you. A booklet explaining the Plan E benefits and an enrollment form can be obtained by calling United Healthcare. You can complete and return the "Retiree and Dependent Information"
form found in the center of the GA-46000 employee booklet. Your eligibility will be verified and a GA-46000 10 card will be sent to you. You can obtain a GA-46000 booklet from your employer or by contacting United Healthcare at 1-800 842-5252.
If you have any questions about your eligibility for GA-46000 or the benefits provided under the Plan, call United Healthcare at 1-800 842-5252