AT&T MANAGEMENT RETIREE SURVIVOR INFO (Draft)
You can download this information as a Microsoft Word document.NOTE: This document is based Karl Pfeffer’s Lucent document.
The AT&T updated information is deemed reliable, but not guaranteed.
This is NOT an official AT&T document.
QUICK REFERENCE SUMMARY
1. DEATH NOTIFICATION
2. DEATH BENEFIT
3. BASIC LIFE INSURANCE COVERAGE
4. PENSION
5. HEALTH INSURANCE
6. PRESCRIPTION DRUG PROGRAM:
7. DENTAL
8. RETIRED EMPLOYEE CARE ACCOUNT (RECA)
9. SAVINGS PLAN & STOCK
10. LONG TERM CARE
11. TELEPHONE TOLL DISCOUNT PROGRAM
12. SOCIAL SECURITY / MEDICARE
SURVIVOR BENEFIT INFORMATION
1. DEATH NOTIFICATION
The following two organizations should be notified of the death of the retiree. They will send the survivor appropriate forms to get the death benefits shown in Section 2, and will notify COBRA to send you the proper forms to continue your medical insurance, which is discussed in Section 5. The survivor should also get forms to send for the Basic Life Insurance benefit, which is discussed in Section 3.
2. DEATH BENEFIT
The retiree’s beneficiary will receive a death benefit from AT&T equal to the retiree’s compensation in the year of retirement. This includes salary plus any AT&T and team and performance awards. This information can be obtained from the data, which was provided in the pension calculation. In addition, the Pension Service Center (PSC) will provide a letter including this information by calling the above number.
The death benefit is taxable. However, the benefit could be taken over a 5-year period, instead of in a lump sum, thereby decreasing the tax due in any one year.
"Beneficiary" includes:
NOTE: If retiree doesn’t have a mandatory beneficiary, the pension plan will not pay a death benefit. If the retirement occurred after 1/1/98, check that you have this benefit.
When a death of a retiree is reported, a counselor will assist the survivor in obtaining the appropriate forms for all benefits and also will provide appropriate information.
3. BASIC LIFE INSURANCE COVERAGE
The basic life insurance coverage is based on the retiree’s total annual pay at the time of retirement rounded to the next higher $1,000. It includes annual base pay and bonuses, incentives, and merit awards. It does not include overtime pay or differentials.
As an example, based on $43,000 salary at time of retirement (Death benefit raised to next highest $1,000).
Basic Life Insurance decreases by 10% / yr. for 5 years.
Up to age 66 -- $ 43,000
@ 66-67 -- $ 38,700
@ 67-68 -- $ 34,400
@ 68-69 -- $ 30,100
@ 69-70 -- $ 25,800
@ 70 & above -- $ 21,500
A copy & latest updates of the Life Insurance Plan can be obtained by calling 1-800-972-9863 and requesting "Retiree Summary Plan Description Booklets".
Obtain claim form from BDEC or Metlife (1-800-434-7876) and attach an original death certificate.
Upon receipt of the claim form and an original death certificate, a Total Control Account (TCA) will be established. This will take approximately 1 month to set up. The proceeds will be put into an account, which will earn interest, until all the proceeds are withdrawn. The survivor will be given the equivalent of a checkbook, which can be used to withdraw from the account. The entire amount can be withdrawn as soon as the account is set up, or portions can be withdrawn.
The proceeds of the Basic Life Insurance are not taxable, as it is considered to be insurance. However, if the proceeds are left in the account, any interest earned on the balance in the account will be taxable.
4. PENSION
At the time of retirement, the retiree may have had the option of a pension buy out or a monthly pension. If the monthly pension payments were selected, then the retiree had to either select a survivor pension option, or not select the survivor pension option.
If the survivor pension option was selected, the retiree’s pension was reduced by 10%, and the survivor’s pension would be 50% of the reduced pension. For example, if the retiree’s pension was calculated to be $30,000, the pension would be reduced by $ 3,000, to $ 27,000. The survivor would in this case receive a pension of $ 13,500, for life. (If the survivor passed away first, the retiree’s pension would revert back to $ 30,000).
If the survivor option was selected, notify the Pension Service Center of the retiree’s death.
If the retiree opted to decline the survivor option, and instead, used the money which would have been deducted from the pension (in this case 10% of $30,000, or $3,000 or $250/Mo.) to purchase a Universal Life Insurance Policy (or some other investment), the survivor would not be eligible for an AT&T pension. However, the proceeds of the insurance, if invested properly, most likely would yield an annual income equivalent to the amount of the pension. In addition, the insurance money would now also be available to the survivor’s adult children, which would not have been the case if a survivor option had been chosen. In this case, the survivor should notify their private insurance company of the retiree’s death to receive the death benefits.
5. HEALTH INSURANCE
The Health Insurance Plan depends upon: 1) Medicare eligibility; 2) retiree’s age and date of retirement; 3) current age; 4) residing in a POS area; and 5) in an HMO or a Medicare HMO option. These options are listed in the Medical Expense Plan- Summary Plan Description booklet.
A copy & latest updates of the Medical, Dental, and Life Insurance can be obtained by calling 1-800-972-9863 and requesting "Retiree Summary Plan Description Booklets".
Note that 6 months after the retiree’s death, AT&T no longer provides health coverage for the survivors except through the provisions of COBRA. COBRA will permit the survivor to purchase the AT&T Plan for 36 months and then a group plan will be offered for purchase by the survivor.
Call COBRA at 800-277-4038 if you don’t get forms from BDEC within a month after they are notified of retiree’s death.
You may want to explore the use of the various Medigap policies available to substitute for COBRA and/ or the group plan offered. Typically the COBRA and group plan offers more comprehensive coverage but may be more expensive.
Medigap insurance is designed to supplement Medicare’s benefits. By federal law, the benefits of each of the 10 plans, A-J, offered in any state must be the same. Plan A is the "basic" benefit package. Each of the other nine plans (B through J) includes the basic package plus a different combination of additional benefits.
Each state must allow the sale of Plan A, and all insurance companies must offer Plan A, but they don’t have to offer all of the plans. As you shop for a Medigap policy, each company’s products are alike, so they are competing on price, service, and reliability. Medigap policies are "fee-for-service" plans; they generally pay the same supplemental benefits regardless of your choice of health care provider. If Medicare pays for a service, wherever provided, the standard Medigap policy must pay its regular share of benefits.
Contact: Social Security at 1-800-772-1213 for a brochure explaining the Medigap options and coverage.
6. PRESCRIPTION DRUG PROGRAM:
For survivors, the prescription drug plan is included in the health coverage.Medications used on a regular basis can be ordered through the mail pharmacy. The doctor should write the Rx for a 90-day supply, with 3 refills. The order can be paid by check or credit card. When ordering, the medications can be charged to a credit card account (which can be established with Medco so you don’t have to list a credit card with each order), and refill & renewal stickers will be included with the order. The refill sticker will show how many refills remain and the date when it can be reordered. On the last refill, you will get a label which the doctor can paste on a signed prescription form and then mailed to Medco after the renewable date. Prescriptions can also be ordered over the phone and the Internet. Instructions to do this are in the information provided by Medco.
7. DENTAL
8. RETIRED EMPLOYEE CARE ACCOUNT (RECA )
This plan is no longer provided by AT&T.
9. SAVINGS PLAN & STOCK
10. LONG TERM CARE
The survivor should notify Metlife at 1-800-638-7394 of the death of the retiree if you have the AT&T Long Term Care Plan or notify your long term care insurance company to cancel the retiree’s insurance and decide if the survivor would like to continue to retain their insurance).
11. TELEPHONE TOLL DISCOUNT PROGRAM
12. SOCIAL SECURITY
EXAMPLE ( Retiree & Survivor both eligible, receiving benefits and medicare)
| Current monthly benefits | Retiree | Spouse |
| before deductions | $800.00 | $400.00 |
| 2002 Medicare B Deduction | $ 54.00 | $54.00 |
| Amt. Deposited in bank | $746.00 | $346.00 |
| After retiree’s death | $0.00 | $746.00 |
Survivor must notify Social Security of death.
Contact: 1-800-772-1213
The amount paid by Social Security in the month of death must be returned to Social Security. For example, if person dies in July, the payment made in Aug. must be returned. Notify bank of death, they will return check.
Survivor will receive the amount that retiree was receiving from Social Security or the amount from their own account if higher.
Survivor will receive a lump sum payment from AT&T equivalent to 6 months reimbursement for the Medicare Part B deduction from Social Security, which is $54.00 in 2002. There will be no further reimbursement of the Part B deduction after this lump sum payment.
Survivor will receive a burial expense of $ 255.00 from Social Security. Normally, the funeral director will make these arrangements.
ADDITIONAL SURVIVOR INFORMATION
A LISTING OF IMPORTANT PAPERS, WOULD PROBABLY AID THE SURVIVOR IN HANDLING DETAILS. THE FOLLOWING IS A SUGGESTED OUTLINE FOR DOCUMENTS AND INFORMATION THAT MIGHT BE HELPFUL TO A SURVIVOR.
INSURANCE POLICIES
CREDIT CARDS & BANK ACCOUNTS
LIST OF CURRENT MONTHLY BILLS -- INCLUDE THE FOLLOWING:
HOME INFORMATION -- INCLUDE THE FOLLOWING:
WILLS AND POWER OF ATTORNEY -- LIST THE FOLLOWING:
MISCELLANEOUS
END of DOCUMENT