Changes

At retirement, the employee must decide how much coverage to take into retirement (an employee cannot increase coverage in retirement except as noted below):

At retirement, the employee must decide how much coverage to take into retirement (an employee cannot increase coverage in retirement except as noted below):

*Under Basic, the employee may choose 75% Reduction, 50% Reduction, or No Reduction.  Under 75% Reduction, at age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after his/her 65th birthday, until reaching 25% of original coverage, and remaining at that level for life.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The 50% Reduction option reduces coverage by 1% per month until reaching 50% of original coverage, while the No Reduction option does not reduce coverage, but both options require additional premiums for as long as those options are chosen; under these options a retiree has only two other choices: reduce to 75% Reduction or discontinue Basic coverage.

*Under Basic, the employee may choose 75% Reduction, 50% Reduction, or No Reduction.  Under 75% Reduction, for retirees under age 65 the coverage remains in the full amount until age 65.  At age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after an employee's 65th birthday, until reaching 25% of original coverage, and remaining at that level for life.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The 50% Reduction option reduces coverage by 1% per month until reaching 50% of original coverage, while the No Reduction option does not reduce coverage, but both options require additional premiums for as long as those options are chosen; under these options a retiree has only two other choices: reduce to 75% Reduction or discontinue Basic coverage.

*Under Option A, the benefit will reduce at age 65 by $200/month until reaching $2,500.  Premiums must be paid until age 65 after which coverage is free for life.  There is no other alternative except to discontinue Option A coverage.

*Under Option A, the benefit will reduce at age 65 by $200/month until reaching $2,500.  Premiums must be paid until age 65 after which coverage is free for life.  There is no other alternative except to discontinue Option A coverage.

*Under both Option B and Option C, the employee may choose either Full Reduction or No Reduction.  However, the employee may choose to leave some multiples at No Reduction and others at Full Reduction, and if the employee retired before age 65 get a second chance to change between the options for any and all multiples.  Under Full reduction, at age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after his/her 65th birthday, until reaching zero.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The No Reduction option does not reduce coverage but requires additional premiums for as long as the option is chosen; otherwise the only alternative is to discontinue Option B and/or Option C coverage.

*Under both Option B and Option C, the employee may choose either Full Reduction or No Reduction.  However, the employee may choose to leave some multiples at No Reduction and others at Full Reduction, and if the employee retired before age 65 get a second chance to change between the options for any and all multiples.  Under Full reduction, for retirees under age 65 the coverage remains in the full amount until age 65.  At age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after his/her 65th birthday, until reaching zero.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The No Reduction option does not reduce coverage but requires additional premiums for as long as the option is chosen; otherwise the only alternative is to discontinue Option B and/or Option C coverage.

All AD&D coverage ceases at retirement.

All AD&D coverage ceases at retirement.