Why is Loyola implementing two different retiree health care funding options?
A7: Loyola continues to offer one retiree health plan. The change that we’re implementing gives eligible employees a choice about how this benefit is funded—either through the subsidy option or the account option—depending on your retirement date. In summary, all employees who retire on or before June 30, 2006 will be subject to the subsidy approach, and all employees who retire on or after July 1, 2006 will be subject to the account approach. However, the substantive plan does not change as a result of the new funding options. We intend to continue providing pre-65 coverage until retirees become eligible for Medicare at age 65. At that point, Medicare becomes the primary insurer, so the cost structure for Loyola’s retiree health plan will change (e.g., post-65 premiums are lower than pre-65 premiums).
