EARLY RETIREMENT CONSIDERATIONS
CERTIFIED RETIREE – A Certified Retiree is a writer who is at least 60 and has 68 qualified quarters and has retired under the Pension Plan. These writers receive the same health coverage as working writers, at no cost other than the standard annual deductible, co-insurance and dependent premiums (if applicable), until they reach 65 and Medicare kicks in as their primary health insurance (more information about Medicare and how it affects writers’ health coverage can be found here).
WRITERS UNDER 60 YEARS OF AGE LOOKING TO USE EXTENDED COVERAGE POINTS TO BRIDGE THE GAP UNTIL CERTIFIED RETIREE COVERAGE BEGINS – The Extended Coverage program allows writers to bank points so that they can have health coverage even when they don’t qualify through work. However, upon retirement and transition to Certified Retiree status, all Extended Coverage Points are forfeited as the writer is covered by the Health Plan as a Certified Retiree (except in the following circumstance set forth below).
Some writers may qualify for Certified Retiree status at 60 and plan to take their pension before turning 60. If a writer with Extended Coverage Points wishes to take their pension before age 60, they may use their Extended Coverage Points to cover the time until they turn 60. If they do not have enough Extended Coverage Points to keep them insured for all the years until 60, then they will have to obtain COBRA coverage or third-party insurance.
WORKING WRITER WITH ACTIVE COVERAGE – You can be a working writer, receive pension distributions, and still have Active Writer coverage from your employment if you earn at least the minimum to continue to qualify for Active Coverage. If you are a writer who has elected retirement even though you are employed, then find yourself unemployed and don’t qualify for Active Coverage, you can use any Extended Coverage Points available. Once the Extended Coverage Points are exhausted, you will have to pay for COBRA extensions, opt for ACA coverage, or obtain other third-party health coverage solutions. If you retire from the Pension Plan before meeting the requirements for Certified Retiree Coverage (68 quarters of coverage), any employment after retirement will not count towards Certified Retiree status.
RETIREMENT AND EXTENDED COVERAGE POINTS IF YOU DO NOT QUALIFY FOR CERTIFIED RETIREE HEALTH COVERAGE
When a writer, who has not qualified for Certified Retiree Health coverage, retires from the Pension Plan they may continue to use any Extended Coverage Points remaining to continue coverage under the Health Plan. If the writer is using Points and has active coverage under another industry health plan, like DGA or SAG-AFTRA, the active coverage plan will be primary and the Writers Guild Health Fund provides secondary coverage. At age 65, a retired writer who has enrolled in Medicare but still has Extended Coverage Points will have the Writers Guild Health Fund as primary coverage and Medicare as secondary until the Extended Coverage Points are exhausted.
EMPLOYEES OF A NAMED EMPLOYER
If someone works for the WGA East, WGA West, CBS, or the Pension and Health Plans (PWGA) – what are called Named Employers – they receive the same health coverage as writers, but with one important difference: they do not accrue Extended Coverage Points. Thus, if someone working for a Named Employer elects to retire before 60 and has 68 qualified quarters of employment, they will need to fill the “gap” years by paying for COBRA extensions, opting for ACA coverage, or obtaining other third-party health coverage solutions.
FINAL THOUGHTS
To learn more about Extended Coverage go the PWGA website, open the Participant Guide, and check out Section VII – Qualifying for Health Fund Coverage.
The Writers-Guild Industry Health Fund’s primary mission is to be a trusted guide for writers. If a writer is considering retiring early the best thing to do is contact the PWGA Pension Department, set up an appointment, and we will sit down and help the writer understand their options, so they make the best decision for themselves and their family. Writers are welcome to bring along their own financial advisor should they desire.
The Pension Department can be reached by phone at:
(818) 846-1015 / (800) 227-7863
(Press 1, then press 4).
The Eligibility Department can be reached at:
(818) 846-1015 / (800) 227-7863
(Press 1, then press 2).
You can also reach us through Contact Us.