RETIREMENT
Medicare & Social Security
Medicare and Social Security can help provide support in retirement. Medicare provides health insurance, and Social Security helps supplement your income in retirement through monthly payments. Medicare and Social Security are federally managed benefits that you’re entitled to based on your age, the number of years you have paid into the programs, or if you have a qualifying disability. You and Eaton pay into these programs through payroll taxes.
Medicare
Medicare provides federal health insurance that covers hospitalization, doctor services, outpatient care, preventive services and medical supplies. It covers part of the cost of these services and is available to people who are 65 and older, certain people with disabilities or certain illnesses, and those who meet certain other eligibility requirements. While you're working, you and Eaton pay payroll taxes toward Medicare.
You have the option to enroll in Medicare as early as 90 days prior to your 65th birthday or you can delay enrollment until you retire if you are planning to continue employment beyond age 65. While you remain a current employee, you do not need Medicare coverage as long as you are enrolled in an Eaton active employee medical plan and you remain employed by Eaton. Once you retire, you will need to enroll in Medicare within the special enrollment period. During this time, Fidelity will help you complete form CMS 1564 to show you were enrolled in group healthcare coverage and list your dates of employment to avoid any penalties for late Medicare enrollment.
Visit the Center for Medicare & Medicaid Services website for more information.
Social Security
Social Security is designed to provide a guaranteed lifetime income for retired workers 65 or older and to people with certain disabilities. It also provides survivor benefits for families of deceased workers and disability insurance for workers with disabilities and their families. If you're retired or unable to work, you can get retirement or disability income from Social Security. These benefits are paid through payroll taxes from you and Eaton.
Visit the United States Social Security Administration site to create your account at https://www.ssa.gov/.
Applying for Benefits
Once you retire, here are the steps to follow to enroll in your Medicare or Social Security benefits:
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If you or your spouse is eligible for Medicare, you or your spouse will need to enroll in Medicare Parts A and B to ensure that maximum medical coverage is available.
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If you are already enrolled in Social Security benefits, you will be automatically enrolled in Medicare Parts A and B once you are Medicare-eligible.
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If possible, you should stop contributing to your Health Savings Account (HSA) six months before applying for Medicare and/or Medicare benefits. This is because Medicare Part A will be retroactive for up to six months from the date of your application.
You can also get more information on Medicare plans from the Centers for Medicare and Medicaid Services (CMS) at 877-267-2323, or at https://www.cms.gov/medicare/medicare. To begin your enrollment process in Medicare or Social Security benefits, visit www.ssa.gov.