INCENTIVES FOR RETIREMENT IF AGE 55 OR GREATER

OR 30 YEARS OF SERVICE

• If you are age 55 (with at least 5 years of service) or you have 30 years of service, you must retire by April 1, 2010 to receive $10,000 and severance pay. 
• If you turn age 55 (with at least 5 years or service) or you attain 30 years of service between April 1, 2010 and January 1, 2013, and you retire within 60 days of becoming eligible, you will receive severance pay. 
  
  

  RETIRE JANUARY 1, 2010 or

  RETIRE FEBRUARY 1, 2010

  • Old Medical Insurance Plan ($38 X years of service = monthly credit toward insurance premium until age 65; post age 65 cap = $187 monthly credit)
  • Old Dental and Vision Plan (Pay old COBRA monthly premium amount; 18 mos. max.)
  • Must have 10 years of service for medical, dental and vision benefits
  • Severance at old pay rate
  • $10,000
  • $350 per month for the greater of 3 years or age 62 (if age 55 by June 30, 2007 and 5 years vesting)

   

  RETIRE MARCH 1, 2010

  • Old Medical Insurance Plan ($38 X years of service = monthly medical credit toward insurance premium until age 65; post age 65 cap = $187 monthly credit)
  • New Dental and Vision Plan (Pay new COBRA monthly premium amount; 18 mos. max.)    
  • Must have 10 years of service for medical, dental and vision benefits                      
  • Severance at new pay rate
  • $10,000
  • $350 per month for the greater of 3 years or age 62 (if age 55 by June 30, 2007 and 5 years vesting)

   

  RETIRE APRIL 1, 2010

  • New Classic Medical Insurance Plan (Pay monthly premium amount; benefit is $4,000 X years of service in RHCA; Medicare supplemental insurance paid out of any balance in RHCA)
  • New Dental and Vision Plan (Pay new COBRA monthly premium amount; 18 mos. max.)
  • Must have 10 years of service for medical, dental and vision benefits
  • Severance at new pay rate
  • $10,000
  • $350 per month for the greater of 3 years or age 62 (if age 55 by June 30, 2007 and 5 years vesting)

   

  RETIRE MAY 1, 2010 TO JANUARY 1, 2013

  • New Classic Medical Insurance Plan (Pay monthly premium amount; benefit is $4,000 X years of service in RHCA; Medicare supplemental insurance paid out of any balance in RHCA)
  • New Dental and Vision Plan (Pay new COBRA monthly premium amount; 18 mos. max.)
  • Must have 10 years of service for medical, dental and vision benefits
  • Severance at new pay rate (If you begin retirement within 60 days after either attaining age 55 (with 5 years of service) or 30 years of service (whichever comes first)

   

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  INCENTIVES FOR VOLUNTARY LAYOFF

  • Must volunteer by February 2, 2010 and be laid off by January 1, 2013
  • Severance at new pay rate
  • $10,000
  • No recall rights
    
    

    INVOLUNTARY LAYOFF PRIOR TO JAN. 1, 2013

    Within 9 months after being laid off, but before you are recalled, you must select in writing on Company form either:

         (1)  Severance pay and $10,000 with no recall rights; or

         (2)  Decline separation payments (no severance or $10,000) and retain recall rights at

               Tier 1 rate

    NOTE:  If you fail to notify the Company within 9 months of your selection, you automatically retain recall rights and get no separation payments