The University of New Mexico offers eligible 65+ retirees the
following benefits in addition to retirement benefits available under
the ERA Defined Benefit plan or the Alternative Retirement Plan. To
access these benefits, a potential retiree must meet the criteria of University
Administrative Policy 3600, Section 2.3
Recent Benefit Changes
UNM is presently faced with a large unfunded post-retirement benefit liability for retiree post-retirement benefits, which, if not corrected, will grow each year. This increasing liability will jeopardize UNM's financial stability, and could lead to the complete elimination of retiree health benefits if not immediately addressed. The faculty, staff, and retiree members of the Retiree Health Care Task Force were charged with the task of preparing recommendations to reduce UNM's unfunded liability for retiree post-retirement benefits.
After careful consideration, the Retiree Health Care Task Force recommended, and the Regents approved, an increase in the contributions of Pre-65 and Post-65 retirees to post-retirement benefits.
This memo contains important information about the changes that will impact Post-65 retiree benefits, effective July 1, 2013:
- Basic Life Insurance Contribution Changes
- UNM-Sponsored Medicare Plan and Dental Plan Contribution Changes
Basic Life Insurance Contribution Changes
Currently, UNM retirees contribute 40% toward the cost of their total premium for Basic Life Insurance benefits. Effective July 1, 2013, that percentage of contribution for Post-65 retirees will increase to 60% retiree contribution. UNM will continue to contribute to UNM Basic Life Insurance premiums, but at a reduced rate of 40%.
UNM-Sponsored Medicare Plan and Dental Plan Contribution Changes
Post-65 retiree changes will phase in over a three-year period to an allocation of 70% retiree contribution and a 30% UNM subsidy of premiums by the third year.
Post-65 Retiree Contribution Table
| Year | Contribution % Post-65 retirees |
|---|
| 1 (FY 2014) | 60% retiree contribution |
| 2 (FY 2015) | 65% retiree contribution |
| 3 (FY 2016) | 70% retiree contribution |
Contribution percentage changes go into effect JULY 1, 2013.
Please see revised rate schedule below:
Information Sessions
For more information about these changes, please attend one of the following informational sessions listed below:
Session 1
- Wednesday, May 1, 2013
- 2:00 pm - 3:30 pm (Continuing Ed, Room C)
Session 2
- Wednesday, May 8, 2013
- 2:00 pm - 3:30 pm (Continuing Ed, Room C)
Medical Benefits for 65+ Retirees
Retirees who are going to be 65+ at the time of retirement should
coordinate enrollment onto Part B of Medicare with Retirement Services.
Upon receipt of the Medicare card showing part A and part B, a retiree
can schedule an appointment with Retirement Services to enroll in a
UNM-sponsored Medicare plan. All 65+ retirees are responsible for paying
57% of the total premium for all benefits elected into retirement
covering themselves and any eligible dependents.
Medical Insurance Carriers
The University of New Mexico offers the following Medicare plans to
qualified retirees over the age of 65:
- Lovelace Senior Plan
- Presbyterian Senior Plan
- United Healthcare Medicare Prescription Drug Plan
- AARP Preferred Medicare Supplement Plan
Medical Insurance Rates
The rates for the UNM Medicare plans are outlined in the annual 65+
Open Enrollment guide below:
Dental Benefits for 65+ Retirees
Retirees who are 65+ retain the same dental plan as when they were
under 65, but the percentage of contribution toward total premium is
higher. All 65+ retirees are responsible for paying 57% of the total
premium for all benefits elected into retirement covering themselves and
any eligible dependents, including Dental coverage.
The Delta Dental program is a nation-wide insurance company. You may
utilize any dental provider outside of NM that is contracted with Delta
Dental. When using a provider outside of NM, the provider should contact
the NM Delta Dental office to confirm your coverage and the claims must
be submitted by the provider to the NM Delta Dental Office. Contact the
Delta Dental office when accessing services outside of NM to insure
proper coordination and processing of claims.
Dental Insurance Rates
The rates for the 65+ Dental Rates are outlined in the annual 65+
Open Enrollment guide below:
65+ Retiree Life Insurance Benefits
UNM Offers term life insurance through Standard Insurance Company. In
order to retire with life insurance benefits from UNM, an employee must
be enrolled in the life insurance benefit for one year immediately prior
to retirement. The amount of coverage available at 65 is a fixed
coverage amount. UNM contributes 43% toward the total cost of premiums
for Basic coverage. Supplemental Life insurance is 100% paid by the
retiree.
Basic Coverage Available to the 65+Retiree
The basic life insurance benefit for 65+ retirees is $4000.00.
Additional Coverage Available to the 65+Retiree
Additional life insurance, or or "tiers" of coverage beyond the basic
coverage are available to UNM retirees. Additional life insurance is 100%
paid by the retiree. Tier 1 and Tier 2 levels offer an additional $2000
in coverage to a maximum total coverage under both Basic and
Supplemental coverage of $10,000.
Calculation of Premiums for 65+ Life Insurance coverage
The premium charged for Standard Life Insurance for 65+ retirees is
calculated by the following formula:
Standard Premium per unit x level of coverage/1000 x retiree
% of contribution
Premiums for 65+ Life Insurance coverage
- Basic: 1.78 x $4000 coverage/1000 x
57% = $4.06 Basic
- Tier 1: 1.97 x $2000 coverage/1000 x 100% = $3.94
Supplemental Premium
- Tier 2: 1.97 x $6000 coverage/1000 x 100% = $11.82
Supplemental Premium
Cancellation of coverage
UNM Life Insurance can be cancelled anytime by contacting Standard
Life Insurance company at (800) 759-8702.
