Retiree medical coverage

When you leave BP, you may be eligible for coverage under the BP Retiree Medical Plan, which is a separate plan described elsewhere on LifeBenefits. Note: You may not be enrolled in the Retiree Medical Plan and be a BP employee at the same time. If you are subsequently rehired as a BP employee, your Retiree Medical Plan coverage will end. Contact the BP Benefits Center for more information.

To view BP Retiree Medical Plan information, you can use the BP Benefit Finder at the top of the screen to navigate to the applicable LifeBenefits pages, or you can download the information in PDF format. To do so:

  • Click here if you or ANY of your enrolled dependents are eligible for Medicare.

  • Click here if you and ALL of your enrolled dependents are NOT eligible for Medicare.

What coverage costs

In general, you and BP share in the cost of retiree medical coverage. During annual enrollment each year, you will be notified of the required contribution for your available coverage options for the upcoming plan year.

Note: This information won’t apply if you’re covered under the Retiree Medical Plan as a surviving spouse or STD/LTD Recipient. See the separate Retiree Medical SPD for details.

For BP Participants or surviving spouses with an eligibility event under a heritage retiree medical plan, the rules of the heritage plan apply.

Retirees

Your eligibility for coverage under the BP Retiree Medical Plan depends on:

  • Your U.S. date of hire;
  • Your age;
  • Your years of vesting service in a U.S.-based BP retirement program when you left BP; and
  • The BP business unit for which you worked.

If you enroll in a Medicare HMO option available to you under the BP Retiree Medical Plan, you may pay a higher percentage of the cost than if you enroll in any other medical option.

If you were hired before April 1, 2004

The following table reflects contribution percentages under the BP Retiree Medical Plan. Your contribution is 50% or less of the cost of retiree coverage, as determined by BP, depending on your age and your years of service when you left BP.

Age

Years of service

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20+ 

50

 

 

 

 

 

50%

50%

50%

50%

48%

45%

42%

39%

36%

33%

30%

51

 

 

 

 

 

50%

50%

50%

48%

45%

42%

39%

36%

33%

30%

30%

52

 

 

 

 

 

50%

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

53

       

 

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

54

 

 

 

 

 

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

55

50%

50%

50%

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

56

50%

50%

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

30%

57

50%

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

30%

30%

58

50%

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

30%

30%

30%

59

48%

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

60+

45%

42%

39%

36%

33%

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

If you were hired before April 1, 2004 and your employment is terminated due to a reduction in force, outsourcing, the sale or disposition of all or part of your employer to another company — and at termination, you are eligible for coverage under the BP Retiree Medical Plan — you will be eligible for the minimum retiree contribution percentage.

The applicable contribution percentage for coverage applies whether you choose coverage for yourself only or you and your dependents. Your cost may vary based on the plan option in which you enroll.

Note: If you worked at TNK-BP and then returned to work at BP prior to separating from BP, your service with TNK-BP counts toward the years of service calculation for purposes of determining the applicable participant premium percentage.

If you moved within BP

If you moved from a BP employer who offered coverage in the BP Retiree Medical Plan to one that did not, and you met the eligibility requirements before your move, your age and vesting service in a BP retirement plan when you left BP determined your retiree contribution percentage.

If you moved from a BP employer that did NOT offer coverage in the BP Retiree Medical Plan to one that did, and you met retiree medical eligibility at the time you left the participating employer, your age and total vesting service in a BP retirement plan were used to determine your retiree contribution percentage.

If you were hired April 1, 2004 or later

Full-time and part-time employees hired April 1, 2004 or later by a BP employer who offered coverage in the BP Retiree Medical Plan are eligible to participate in the BP Retiree Reimbursement Account Program. Note: One of the BP employers who do not offer coverage in the BP Retiree Reimbursement Account Program is BP GBS Americas. Eligible employees of this company who are/were hired on or after April 1, 2004, will be eligible only for the medical portion of the BP Retiree Medical Plan. Please see the GBS Medical SPD for more details on transfers between Core and GBS.

A retiree reimbursement account (RRA) is designed to help eligible retirees who are not eligible for a reduced premium contribution pay for any qualifying medical expense. If you are eligible to participate in the BP Retiree Medical Plan when you leave BP, your accumulated RRA credits can be used to reimburse you for any “qualifying” medical expense. A medical care expense under an RRA will be considered to be “qualifying” if it meets federal tax law standards. Examples are health plan premiums, deductibles, coinsurance and copays.

You will receive an annual “credit” in your RRA based on your age and years of service, with the term “annual” meaning the plan year. This “credit” is actually a bookkeeping entry, and there is no vested ownership in such entries by any participant. You do not make any contributions to your RRA, and it accrues no interest.

Once your RRA is depleted, you will no longer be eligible for reimbursement of any qualifying expenses; however, this would not impact your eligibility for coverage under the medical portion of the BP Retiree Medical Plan.  

Annual credits accumulated from your date of hire range from $7,500 to $10,500 as shown in the chart below. Your points determine the amount of your annual credit. 

Points = Age + Years of Service
Annual Credit
Less than 41
$7,500
41 – 50
$8,250
51 – 60
$9,000
61 – 70
$9,750
71 or more
$10,500

Note: Monthly prorating applies when you are hired by, or if you leave, BP in the middle of a plan year. In order to get credit for a month, you must work the entire month in order to obtain credit. For example, if your final day of work is January 31, you will receive credit for January, but if your final day of work is January 15, you will not receive that month's credit. Also, the monthly credit will be based on your above point calculation as of the end of the month, even if the applicable point calculation changes in the middle of the month.

How to use your RRA

When you have a qualified medical expense:
  • Pay the expense.
  • Print the RRA claim form from the Aetna website.
  • Mail your claim request (with the appropriate receipts) to:
Aetna
P.O. Box 4000
Richmond, KY 40476-4000
OR
  • You may fax the form and receipts to 1-888-238-3539.

If your claim is approved, you will receive tax-free reimbursement up to the amount in your RRA.

What retiree medical expenses are eligible?

Qualified medical expenses include certain health insurance premiums and other out-of-pocket medical expenses that the Internal Revenue Service (IRS) lists as eligible (i.e., the amounts you spend on deductibles, copayments, prescriptions, some over-the-counter medications, etc.). Consider using the RRA to help with medical premiums up to the time you are eligible for Medicare.

If the expense is covered under any other plan, you cannot be reimbursed through the RRA until the expense has been considered by the other plan.

A description of eligible expenses is available from the IRS. If you want, go to http://www.irs.gov and search for Publication 502. Or, you may call Aetna Customer Service at 1-866-436-2606.

Keeping track of your RRA

You can track your RRA balance and reimbursements online. Use the secure Aetna website at http://www.aetna.com. You can also print RRA claim forms and receive general health information.

You can also verify your balance by calling Aetna Customer Service at 1-866-436-2606 (if hearing impaired, call 1-877-703-5572). You may also receive paper statements on a regular basis.

If you want to learn what your RRA balance was on the day you retired, or how BP calculated your credits, go online to the BP Benefits Center from the LifeBenefits homepage, or call the BP Benefits Center at 1-800-890-4100.

Using your RRA with the Health+Savings options (PPO or Out-of-Area)

If you are enrolled in one of the Health+Savings options with the Health Savings Account (HSA) for retiree medical coverage before you become eligible for Medicare, your RRA may be used only for certain types of expense, as follows:

  • Until you meet your deductible, your RRA can be used only for certain types of expenses, including Medicare premiums and eligible out-of-pocket vision, dental and preventive care expenses. Note: Medicare premiums can only be for your spouse or eligible dependent, as you cannot be covered under Medicare and also contribute to an HSA. Your RRA cannot be used to reimburse you for your deductible. You can use your HSA to pay for all out-of-pocket eligible medical expenses. You cannot be reimbursed from both accounts for the same expense.
  • Once you meet your deductible, the RRA can reimburse you for all eligible medical expenses you and your eligible spouse and dependents incur.

If you moved within BP

If you moved from a BP employer who offered coverage in the BP Retiree Medical Plan to one who did not, and you met the eligibility requirements for the BP Retiree Medical Plan while at the participating employer, you will continue to receive annual RRA credits while employed at the non-participating employer.

If you moved from a BP employer who did NOT offer coverage in the BP Retiree Medical Plan to one that did, and you met BP Retiree Medical Plan eligibility at the time you left the participating employer, your annual credits were based on your age and your total vesting service in a BP retirement plan.

If you transfer within BP to a non-participating group

Occasionally, a BP employee may transfer within BP to a non-participating BP entity (a business unit that does not offer retiree medical coverage). In this case, the following special rules apply. All other retiree medical rules/rehire rules continue to apply. Note: You can retire from the non-participating BP group and receive BP retiree medical coverage if you meet the stated requirements — you are not required to return to a participating BP group first.

If you are retiree medical eligible when you transfer to a non-participating group

If, when you transfer, you are either age 50 with 10 years of vesting service, or age 55 with 5 years of vesting service:
  • And you were hired before April 1, 2004:
    • Your service in the non-participating unit counts for purposes of calculating your retirement subsidy.
  • And you were hired April 1, 2004 or later:
    • You do not accrue any additional RRA credits while serving in the non-participating group.
    • You can retire at any time and keep the RRA credits that accrued before you transferred.
    • If you return to a participating BP group, your RRA credits will resume, using all relevant service recognized by the U.S. retirement plan.

If you are not retiree medical eligible when you transfer to a non-participating group

If, when you transfer, you are not either age 50 with 10 years of vesting service, or age 55 with 5 years of vesting service:
  • And you were hired before April 1, 2004:
    • If you had at least 5 or 10 years of service with a participating BP group at the time of the transfer, you may become retiree medical eligible if you fulfill the eligibility rules of age and service (reaching age 50/55 as applicable), while still employed with a BP group.
    • Only vesting service accrued with the participating group will be used to calculate your retirement subsidy.
  • And you were hired April 1, 2004 or later:
    • If you had at least 5 or 10 years of service with a participating BP group at the time of the transfer, you do not accrue any additional RRA credits while serving in the non-participating group, but you can make a claim for your RRA balance at the time you transferred if you fulfill the eligibility rules of age and service (reaching age 50/55 as applicable), while still employed with a BP group (i.e., you accrue service time but not RRA credits).
If you transferred to a non-participating group and wish to retire under the above provisions, you need to coordinate with HR and BP Benefits to request retiree medical coverage. Coverage is not automatic.

If you are rehired

Occasionally, retired BP employees are rehired. Active employees are not eligible for Retiree Medical Coverage, so you would temporarily lose this coverage while employed. Please note the following, which would apply upon your subsequent retirement.

If you were eligible for the subsidized premium upon your first retirement, as indicated in the If you were hired before April 1, 2004 section above, you would not lose that subsidy. Instead, your additional service will be used to calculate whatever new subsidy might apply. For example, if you were age 50 with ten years of service when you first retired, your subsidy would have been set at the 50% level at that time. If you return and then later retire at age 58 with five years of additional service, you would then be eligible to pay 30% of the applicable premium at that time.

If you were eligible for the RRA at the time of your first retirement, as indicated in the If you were hired April 1, 2004 or later section above, your additional service time while you are re-employed will be used to calculate the amount of credits to your RRA balance until your next retirement. Note that the RRA is not available to you to cover medical expenses while you are an active employee.

There is often confusion when people were originally hired prior to April 1, 2004 but rehired later. If

  1. Your original U.S. hire date with BP was before April 1, 2004;
  2. You were rehired on or after April 1, 2004; and
  3. You were vested in a U.S.-based BP retirement plan as of your original termination date;

then you are eligible for the subsidized premium upon meeting the BP Retiree Medical Plan eligibility rules and are not eligible for the RRA.

If you were not vested in a U.S.-based BP retirement plan as of your original retirement date, or any subsequent retirement date, and your rehire date was on or after April 1, 2004, then upon meeting the BP Retiree Medical Plan eligibility rules you would be eligible for the RRA and not the subsidized premium, and your RRA would start with a zero balance. However, if your prior service counts as vesting service for a U.S.-based BP retirement plan, then that service will be taken into account when calculating the applicable RRA annual credit for your most recent rehire period.

Note: For all rehires on and after September 1, 2014, if you were not eligible for the BP Retirement Medical Plan upon your most recent termination date prior to September 1, 2014, then you will only be eligible for RRA credits upon your rehire regardless of your prior vested status in a U.S.-based BP retirement plan. If your prior service counts as vesting service for a U.S.-based BP retirement plan, then that service will be taken into account when calculating the applicable RRA annual credit for your most recent rehire period.
 

For purposes of this section, the term “U.S.-based BP retirement plan” refers to either a 401(k) or pension plan that was sponsored by BP as of the time of your retirement. If you vested in a retirement plan and terminated from an employer that BP acquired after your termination date from that employer, that employment period will not be taken into account when determining whether your original date was pre- or post-April 1, 2004. However, if a U.S.-based BP retirement plan counts such prior service as vesting service, then that service will be taken into account when calculating either the amount of subsidized premium or the RRA annual credit, as applicable.



Publication date: April 2019

 

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