Shell Retiree Health Insurance Pre-2006?

Watch my previous video for those hired in 2006 or later.

Full Transcript:

I started with Shell in 2005. When can I retire?

Today we look at health insurance for Shell employees that started with Shell before 2006. In the previous video, we talked about the cohort that started between 2006 and 2016. So, if you fall into that group, I encourage you to watch that video.

Now, for those of you that started with Shell before 2006, we’ll talk about your eligibility and your benefit. The eligibility is the same. You still need to reach at least age 50 and have at least 80 points.

Now, your points, of course, are calculated by your age and your years of service. The benefit, however, is where this plan varies. The benefit is great and will pay up to 80% of the cost of the PPO. So, for those of you that reach this full maximum, it will feel like your health insurance is the exact same as when you were working.

Now, this benefit is based on your years of service. So, if you have 30 years of service, Shell will pay the full 80% cost. Now, for those of you with less years of service, the factor decreases by 5% per year. You can see the full table in the Shell summary plan description, and I’ve also placed it on the screen.

Now let’s walk through a hypothetical case study. Let’s look at Jane. In this case, Jane is also 45 years old. And Jane also wants to retire in ten years at the age of 55. Now, Jane hired on with Shell in 2005. So, Jane qualifies for this plan as she hired on before 2006. In ten years, Jane will be 55 years old and will have 28 years of service. Therefore, Jane will have 83 points, meaning the point threshold and the age threshold. And of course, Jane is already on Shell’s health insurance at retirement.

Now, as Jane will have 28 years of service, we then need to go look at the table to calculate her benefit. Shell will pay 80% of the PPO times the factor of 90%. So, Jane has Shell paying 72% of her health insurance premium.

And therefore, Jane is responsible for the other 28%. This is an excellent benefit as Shell pays this up until she reaches Medicare and then at age 65, she can join Medicare and Shell’s Medicare Advantage plan. So, for those of you that hired on with Shell before 2006, make sure you’re looking at your eligibility when making your decisions about your future plans.

For those of you that hired on in 2006 or later, I encourage you to watch my previous video. I also encourage any of you to reach out to me if you have any questions about Shell’s benefits.