CWC recognizes that as an employee draws closer to retirement age, life circumstances may permit or require them to consider retirement prior to meeting the criteria for Medicare coverage eligibility. The ability to maintain health insurance coverage during this gap of time can be a considerable obstacle in the employee’s decision to retire. It is during this gap that CWC may assist a valued and long-time employee with an option to bridge the gap in health insurance coverage until such time when the employee meets Medicare coverage eligibility requirements.

To serve the interests of both the college and the employee, an incentive to aid separation from employment when employees are within five years of Medicare coverage eligibility, the college may provide an annual payment to retiring employees until they reach medicare eligible age to assist with continued insurance coverage  while at the same time realizing a cost savings in salary expenditures.

A.  The purpose and intent is to provide for monetary savings to the institution while also allowing assistance with health insurance premiums for employees who voluntarily separate from the college earlier than when the employee would normally qualify for Medicare benefits.  

B.  This incentive is intended to:

1.  create an institutional savings derived between the salaries of the retiree and new hire; and,

2.  assist an employee in need of possible retirement options by bridging the gap between full-time employment and retirement, allowing employees to maintain much needed health insurance coverage during their life transition.

C.  Approval of this benefit is contingent upon economic benefit to the college based upon replacement considerations and the best interests of both the college and the employee.  During challenging financial times (e.g., Reduction in Force 7.2.16), the President/Cabinet may choose to not offer this incentive.

A.  Applicant must have a minimum of fifteen (15) years of continuous benefited service at Central Wyoming College at the time of application; and
B.  Applicant must attain an age five years or less prior to Medicare coverage eligibility before receiving the benefit; and
C.  Applicant must not yet be eligible for Medicare coverage; and
D.  To ensure that the purpose above is met and is mutually beneficial to the employee and college:

1.  Application by the employee constitutes recognition of a benefit; and
2.  The Director-HR must render an opinion that it is likely that the college will derive an economic or other benefit should the application be granted; 

and 
E.  Fund 10 Applicants are eligible. Non-Fund 10 (i.e. WPBS, Auxiliary and Grants) are either ineligible due to the nature of their funding source, or that funding source will need to supply the funding for the benefit.
 

In any given year, the President may limit the number of application approvals.  If the President does so, and more eligible applicants apply and meet the criteria listed above than the limit for that year allows, the applicants with the most months of continuous service to the college at the time of application deadline will be approved.
 

A.  The retiree must annually provide to the college documentation indicating that they are enrolled in a qualifying health insurance policy  to continue to receive annual payments.  What constitutes qualifying health insurance coverage for this purpose and what documentation is required will be listed in the implementation process for this procedure; and
B.  These payments cease the year after the retiree reaches Medicare coverage eligibility.  The final annual payment will be prorated by month to when the retiree is eligible for Medicare coverage; and  
C.  If the retired employee becomes re-employed in a benefited position at CWC, any future annual CWC Health Insurance Bridging payments cease; and
D.  If the retired employee becomes deceased, any future annual CWC Health Insurance Bridging payments cease; and
E.  If the insurance coverage documented by the retiree is through a family member employed by CWC and covered by the college’s health insurance program, the annual benefit paid to the retiree will be reduced by the annual difference between the college’s paid portion of “single” coverage and “single and spouse coverage”.   

A.  The annual payments are determined by a set amount for each year of continuous benefitted employment at CWC.  Each year the President will determine that set amount per year of employment.  The amount is fixed for all employees regardless of classification.  Specifics of the calculation will be included in the implementation process for this procedure.
B.  This annual payment amount will remain at this figure for the term of each individual application granted.  
C.  The annual payments will be paid directly to the retired CWC employee and will be reported to the IRS as required by law.
D.  The college contribution calculation of annual payments caps at 30 years of service.
E.  The college contribution will not exceed the actual annual premium cost for the employee for single-retiree coverage less the EGI-provided monthly allowance based upon years of service.

A.  No later than March 1 of each year, the President (or designee) will notify all benefitted college employees, and include in the implementation process for this procedure, whether or not this Health Insurance Bridging contribution will be offered for employees choosing to retire in the following fiscal year.  
B.  If the President (or designee) decides the Health Insurance Bridging contribution will be offered the following fiscal year,  s/he will at the same time of the general notification in 1 above, also:

1.  Specifically notify eligible employees that they meet the requirements to be considered for this benefit, the annual amount of the benefit for that employee, and how the college will report these payments to the IRS; and,
2.  Include in the implementation process:

a.)  The date applications are due for employees choosing to apply for this benefit, and such date will not be less than six weeks from the notification date;
b.)  The date the college will notify employees if the college has granted their application;
c.)  The credit for each year of continuous full-time service toward continuing state of Wyoming health insurance coverage used by the college that year in calculating the annual payment; and
d.)  If the number of approved applications will be limited for the upcoming fiscal year, and if so at what number.

Should an applicant decide to delay retirement after this benefit has been approved, they must reapply to be considered again at a later date.