Coverage upon eligibility for Medicare Sample Clauses

Coverage upon eligibility for Medicare. Retired Employee Becomes Medicare Eligible. When a retiree and his/her spouse both become Medicare-eligible or when a retiree without a spouse becomes Medicare-eligible, in lieu of retiree health insurance the Township will provide an annual reimbursable amount not to be rolled over from year to year of $1,632.00 for single and $3,264.00 for a couple into a health reimbursable account which may be used for all medical expenses allowed under law. This payment shall be pro-rated in the calendar year when the payment first begins with the $1,632.00/$3,264.00 payment being based on a full calendar year.

Coverage upon eligibility for Medicare a. The Township has the right to unilaterally change the contract with respect to the health insurance offered to Medicare eligible retirees under Article 31, Section 8. b. If annual Medicare savings under this new plan exceeds $100,000 compared to current retiree health care costs, the Township will make a one-time $1,000 cash distribution spread over the following schedule: $500 in January of 2017 and $500 in January of 2018. c. If annual Medicare savings are between $50,000 and less than $100,000, the payout in 2017 and 2018 will be reduced to $250 per year. d. The Township will use the balance for the net savings from this modification to the retiree health care plan to accelerate the payment towards unfunded OPEB liabilities and investigate providing additional wellness benefits for full time employees. e. This Medicare savings distribution will not extend beyond the life of this contract that expires on December 31, 2018.

Coverage upon eligibility for Medicare