Cairo Association of Teachers - Newsletter



CAT Tracks for January 9, 2004
MEDICARE OPTION

This edition of CAT Tracks is for teachers who have been continuously employed by the same employer since March 31, 1986. (Those of you hired after that date are already paying for Medicare coverage.) I attended the monthly IEA meeting in Marion this past Wednesday, and we were provided the following information and encouraged to alert our members...


MAKING THE MEDICARE SELECTION

Every teacher who has taught in the same school system prior to March 31, 1986 to the present will have one opportunity to opt individually into the Federal Government Medicare System or remain outside of that system. In order to assist those involved in making that decision:

TRS WILL HOST AN INFORMATIONAL MEETING ON MEDICARE SELECTION

(The advantages and disadvantages of choosing to enroll in the Medicare System)


WHERE: MARION HIGH SCHOOL

WHEN: JANUARY 26, 2004 at 4:30 P.M.


BALLOTS WILL BE MAILED TO ELIGIBLE VOTERS ON FEBRUARY 16, 2004

BALLOTS MUST BE RETURNED BY MAY 15, 2004

It is an important healthcare decision for all who have taught in the same school system prior to March 31, 1986 until the present. It is your opportunity to get the facts and get your questions answered.


OPPORTUNITY TO SELECT MEDICARE

Date of Selection (Referendum) Period - Ballots will be mailed on February 9th, with the election period to begin February 16 and run through May 15, 2004. All ballots must be postmarked by May 15, 2004 to be valid.

Eligible Members - TRS members continuously employed by the same employer since March 31, 1986 are eligible to make an irrevocable, one-time, individual election to prospectively participate in Medicare. Teachers who were hired after March 31, 1986, already participate in Medicare. Each employer certified to TRS the names of teachers that are eligible to participate in the referendum. This certification was the sole responsibility of the employer.

Informational Materials - TRS will send to eligible teachers educational materials by January 15, 2004. In addition, the Social Security Administration will be sending teachers that are participating in the referendum a letter detailing the quarters that each teacher has earned up to a given date.

Informational Meetings - TRS will be conducting 11 regional meetings throughout the state from January 26 through February 9. Times and places of these meetings will be publicized in the TRS materials and website - http://www.trs.state.il.us/.

Cost - Those who wish to make a 1.45 percent contribution to earn Medicare credit will select "Yes." The employer will match the employee contribution. The employer cannot refuse coverage for individuals who elect to take coverage.

Effective Date - Payroll deduction for the contribution will begin July 1, 2004 and members will begin earning Medicare credit as of this date. Those selecting "NO", or not responding, will continue to be exempt from the Medicare contribution. Individuals that do not have their ballot postmarked by May 15, 2004 will also be determined as electing not to participate in Medicare. Under federal law, all decisions will be irrevocable.

Medicare Qualifications - In order to qualify for Medicare you must accumulate 40 credits. An individual can obtain a maximum of 4 credits in one year. Credits are accumulated by the amount of salary ($900 for each quarter of Social Security in 2004) earned not time spent in a participating position.

Additional Medicare information: 1-800-633-4227 or http://www.medicare.gov

Questions to consider when reviewing informational materials:

  • How many Medicare credits have I already earned?
  • When do I plan to retire?
  • How many years before I reach Medicare age?
  • If married, will I qualify for Medicare through my spouse?
  • Will I be able to obtain health insurance coverage when I retire?