Social Security

You may start drawing your Social Security retirement benefit as early as age 62 in most cases, but a reduction factor will be applied and income limits exist if you begin drawing your benefit prior to your Full Retirement Age. Full Retirement Age is determined by your year of birth (see Exhibit D).

You should contact your local Social Security office approximately three months prior to when you would like your benefit payments to begin. Most offices will require an appointment if you wish to apply for benefits in person. You may also go online at www.ssa.gov or call 1- 800-772-1213 to apply for benefits.

If you are applying for benefits and are at least Full Retirement Age, there are no income limits if you continue working. Meet with a local Social Security agent to discuss your benefit options and when it may be best for you to apply for and start taking your benefits.

Medicare

Medicare has three parts:

• Part A: Hospitalization and skilled nursing coverage. Most Americans have paid in enough Medicare taxes that Part A is premium free. You should enroll in Part A when you are first eligible.
• Part B: Outpatient and physician coverage. There is a monthly premium for Part B which you will pay (if you are already drawing Social Security benefits, the Part B premium will be deducted from your Social Security check). There is a standard monthly premium, but the premium can be higher based on income. As long as you are covered under a JMU health plan and actively working, you do not need to enroll in Part B until you retire.
• Part D: Prescription drug coverage. Part D plans are administered by independent insurance companies and there is a monthly premium for Part D plans.

As long as you are covered under a JMU health plan as an active employee, you do not need to enroll in Part D until you retire.

If you or a covered spouse are Medicare eligible at retirement, you will no longer be able to remain covered under the COVA Care or COVA HealthAware plans and will be required to enroll in a Medicare coordinating plan upon retirement.

If you or a covered spouse will turn 65 after retirement and you remained enrolled in the State Retiree Health Benefit Program, you will be automatically enrolled in the state’s Medicare coordinating plan, Advantage 65 + Dental/Vision effective the first of the month in which you turn 65 unless you specify otherwise. You should apply for Medicare Part A and B three months prior to your 65th birthday or at least within your initial enrollment window to avoid late enrollment penalties (See Exhibit C).

If you remain employed and work beyond age 65, you should apply to enroll in Medicare Part A (premium free hospitalization coverage) three months prior to your 65th birthday. You will wait to enroll in Medicare Part B (outpatient and physician coverage) when you decide to retire.