The University understands that health care costs and the escalation of those costs can be unpredictable. To help with paying for medical coverage, the University established a credit-based system that it provides to eligible retiring faculty and staff called the Defined Dollar Benefit (DDB) Program.
The credits that each eligible retiring faculty and staff member receive monthly may be used toward the reimbursement of retiree medical coverage. The credits are also provided to the eligible spouse or domestic partner. Credits cannot be used toward the cost of dental or vision coverage or toward the cost of Medicare premiums.
The credit amounts are reevaluated annually with an effective date of January 1 to correspond with the federal government’s Medicare renewals and are increased in accordance with the medical component of the general consumer price index, up to five percent (5%). For the rest of 2024, and throughout calendar year 2025, DDB credits will remain the same as the previous year at $401 per month.
Detailed information about this program can be found in the DDB Plan.
How to Use the DDB Program
Defined Dollar Benefit Calculator
The Defined Dollar Benefit calculator may be used to determine your eligibility date for the DDB program. Eligible faculty and staff hired prior to July 1, 2004 must be at least 62 years of age. Faculty and staff hired on or after July 1, 2004 must have their age and service equal 85 to qualify for this program.
Scenarios of Coverage Levels with Cost-Sharing Information
Plans and DDB availability vary depending on your age (as the retiree) as well as your spouse's/domestic partner's age and whether or not you have dependents that also may need to be covered. To better understand what coverage is available to you, review this table of scenarios with coverage levels and cost-sharing information.
Spouse and Domestic Partner Eligibility
Your eligible spouse is the person to whom you are married at the date of retirement. This means that if you marry or remarry after retirement, that spouse is not covered by the program.
Your eligible domestic partner is the person for whom an approved affidavit is on record at the University as the partner of record at the time of retirement. As above, the same concept applies, if you register a domestic partner after you retire, that person is not covered by the program.
DDB for Surviving Spouses/Domestic Partners
The eligible spouse/domestic partner of a deceased retiree will have continuation of coverage for three months following the end of the month in which the retiree passes away. The credits for the deceased retiree are dissolved.
Continuation of coverage refers to your ability to continue with the same cost share for coverage (if applicable) for a surviving spouse/domestic partner between the ages of 62 and 65 or accrue the Defined Dollar Benefit credits for those waiving University coverage. Surviving spouses/domestic partners age 65 and older will continue to accrue credits for three months following the end of the month in which the retiree passes away.
After three months, the surviving spouse/domestic partner may elect to continue group coverage through the University; however, they will then become responsible for paying the full cost of the premium. However, they can use the remaining credits in their own account to pay the premiums until they are depleted. Coverage will end if the spouse/domestic partner fails to pay the monthly premium.
A surviving spouse becomes ineligible for coverage when they remarry. A domestic partner becomes ineligible when they establish a new domestic partnership or get married.