PG&E: Social Security and Medicare

For PG&E retirees, determining the best method to collect Social Security benefits is crucial for retirement income planning. Understanding and claiming Social Security can be problematic for many PG&E retirees. Social Security benefits are not intended to be a retiree's solitary source of income, but rather a component of their overall withdrawal strategy. Knowing the fundamentals of Social Security and utilizing this information to your advantage will allow you to receive the maximum benefit.

According to a study published in the Journal of Aging and Health in February 2023, it was found that retirees who delay claiming Social Security benefits until the age of 70 can significantly increase their Medicare premium savings. The study revealed that by waiting to claim Social Security until age 70, retirees may qualify for the Medicare hold harmless provision, which limits the increase in Medicare premiums. This information is particularly relevant to our target audience of 60-year-olds as it emphasizes the potential financial benefits of delaying Social Security and carefully coordinating it with Medicare enrollment.

When you first become eligible, it is your responsibility as an PG&E employee to enroll in Medicare parts A and B, and you must remain enrolled in order to be covered for Medicare-eligible expenses. This also applies to your eligible Medicare dependents. 

As a retired PG&E employee, you should be aware of how your medical plan selections and Medicare eligibility affect your plan options. Before you retire from PG&E, contact the United States Social Security Administration at (800) 772-1213, your local Social Security Office, or ssa.gov. They can help you determine your eligibility, enroll you and/or your eligible dependents in Medicare, and provide information about other government programs.

Next Step:

Check the status of your Social Security benefits before leaving your position with PG&E. Call (800) 771-1213 to reach the Social Security Administration of the United States. You can also visit ssa.gov or call your local Social Security office.

Medicare

If you or your dependents are currently eligible for Medicare or will become eligible for Medicare after you leave PG&E, Medicare generally becomes your primary coverage as soon as the individual becomes eligible. This will affect the medical benefits provided by your employer. When you first become eligible for Medicare, you and your Medicare-eligible dependents must enroll in Medicare Parts A and B. Medical and MH/SA benefits payable under the employer-sponsored plan will be reduced by the amount Medicare Parts A and B would have paid had you enrolled in them, regardless of whether you enroll in them. Details on coordination of benefits for PG&E employees can be found in the summary plan description (SPD)(2).

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If you or your eligible dependent do not enroll in Medicare Parts A and B as an PG&E employee, your provider may bill you for the amounts not covered by Medicare or your PG&E medical plan, significantly increasing your out-of-pocket expenses.

According to the Employee Benefit Research Institute (EBRI), Medicare will cover approximately sixty percent of a person's medical expenses. This implies that a 65-year-old couple with average prescription drug costs will need $259k in savings to have a 90% chance of covering their healthcare costs. A solitary male requires $124,000, while a single female requires $140,000 due to her longer life expectancy. In order to be better prepared for future expenses, PG&E retirees must account for research findings.

Understanding the intersection of Social Security and Medicare for PG&E retirees is like navigating the merging lanes of a highway. Just as drivers must navigate the complex merging process to smoothly transition from one lane to another, PG&E retirees must navigate the intricacies of Social Security and Medicare to ensure a seamless transition into retirement. Imagine carefully checking your blind spots, signaling, and timing your merge to optimize your journey. Similarly, PG&E retirees need to be aware of eligibility requirements, enrollment periods, and the impact on their medical benefits to make informed decisions and maximize their retirement income. By skillfully navigating this merging process, PG&E retirees can enjoy a smooth transition into the next phase of their lives with confidence and financial security.

Next Step:

Get Medicare prescription drug information by visiting medicare.gov.

Check your SPD Summary(2) to see if you're eligilble to enroll in Medicare Parts A and B (2). If you become Medicare eligible for reasons other than age, you must contact the PG&E Benefits Center about your status.

For more information on what to do if you are divorcing or divorced, visit https://techstaffer.blog/2019/12/27/att-divorced-or-divorcing/

For more information on the stages of retirement, visit https://techstaffer.blog/2019/12/18/att-stages-of-retirement/

For more information on PG&E job postings, visit https://techstaffer.blog/2020/01/31/att-surplus-job-ideas/