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Certified Retiree Health Coverage Considerations If Retiring Before Aged 60

EARLY RETIREMENT CONSIDERATIONS

CERTIFIED RETIREE – A Certified Retiree is a writer who is at least 60 and has 68 qualified quarters. These writers can opt to retire under the Pension Plan and receive the same health coverage as working writers, at no cost other than the standard annual deductible, co-insurance and dependent premiums (if applicable), until they reach 65 and Medicare kicks in as their primary health insurance (more information about Medicare and how it affects writers’ health coverage can be found here).

WRITERS UNDER M60 YEARS OF AGE LOOKING TO USE EXTENDED COVERAGE POINTS TO BRIDGE THE GAP UNTIL CERTIFIED RETIREE COVERAGE BEGINS – The Pension and Health Plans were designed with the unfortunate truth in mind that employment is often sporadic and that as a writer ages it often becomes more difficult to obtain work. The Extended Coverage program allows writers to bank points so that they can have health coverage (up to five years) even when they don’t qualify through work. However, upon retirement, all Extended Coverage Points are forfeited (except in the following circumstance set forth below).

There is a small group of writers who are near retirement age, will qualify for Certified Retiree status at 60, and plan to take their pension early. If a writer with Extended Coverage Points wishes to take their pension before age 60, they may use their Extended Coverage Points to cover the gap until they turn 60. If they do not have enough Extended Coverage Points to keep them insured for all the years until 60, then they will have to obtain COBRA coverage or third-party insurance.

WORKING WRITER WITH ACTIVE COVERAGE – You can be a working writer, receive pension distributions, and still have Active Writer coverage from your employment if you earn at least the minimum to continue to qualify for Active Coverage. If you are a writer in this situation who has elected retirement even though they are employed, and then find yourself unemployed, you can use any Extended Coverage Points available. Once the Extended Coverage Points are exhausted, you will have to pay for COBRA extensions, opt for ACA coverage, or obtain other third-party health coverage solutions.

A FEW EXAMPLES

Example Retirement Age Qualified Quarters Points Comments/Options
Has enough points to use until age 60 55 68 50
  • Retire at age 55 and use 50 points* to extend coverage for 5 years until age 60.
  • CRH begins the first day of the month after you turn 60.
Does not have enough points to use until age 60 58 68 10
  • Retire at age 58 and use 10 points* to extend coverage for 1 year until age 59.
  • -or- Use Low Option** plan to extend coverage for 1 year and 3 months until age 59 1/2.
  • You will be offered COBRA for the remaining months until age 60.
  • CRH begins the first day of the month after you turn 60.
At least age 60 with points 60 68 50
  • Retire and forfeit all points. CRH begins the first day of the month after you turn 60.
* 2.5 points per Quarter
** 1.5 points per Quarter, Low Option plan (See SPD for details) Points do not apply to Named Employers/Guild Staff/Fund Staff

EMPLOYEES OF A NAMED EMPLOYER

If someone works for the WGA East, WGA West, CBS, or the Pension and Health Plans (PWGA) – what are called Named Employers – they receive the same health coverage as writers, but with one important difference: they do not accrue Extended Coverage Points. Thus, if someone working for a Named Employer elects to retire before 60 and has 68 qualified quarters of employment, they will need to fill the “gap” years by paying for COBRA extensions, opting for ACA coverage, or obtaining other third-party health coverage solutions.

FINAL THOUGHTS

To learn more about Extended Coverage go the PWGA website, open the Participant Guide, and check out Section VII – Qualifying for Health Fund Coverage.

The Writers-Guild Industry Health Fund’s primary mission is to be a trusted guide for writers. If a writer is considering retiring early the best thing to do is contact the PWGA Pension Department, set up an appointment, and we will sit down and help the writer understand their options, so they make the best decision for themselves and their family. Writers are welcome to bring along their own financial advisor should they desire.

The Pension Department can be reached at:

(818) 846-1015 / (800) 227-7863
(Press 1, then press 4)
Email: [email protected]

If you’re not certain how many qualified quarters you have, you can check on the PWGA website.

You can also contact the Eligibility Department at:

(818) 846-1015 / (800) 227-7863
(Press 1, then press 2)
Email: [email protected]