Spouse and dependents of a retired member or veteran of the U.S. government military services (e.g., Army, Navy, Air Force, Marines, Coast Guard). This phrase is used more frequently in the TRICARE and CHAMPVA health care programs.
Tag: RAW
Retirement age
Age when an employee ceases work; age when pension benefits begin to be paid. The Age Discrimination in Employment Act states that minimum mandatory retirement is 70 years of age.
Retirement annuity (Life Insurance)
A deferred annuity wherein consideration is paid in installments until reaching a pre-selected retirement age.
Retirement annuity policies/contracts (RAPS)
Replaced by personal pension plans in 1988 but pre-88 plans still run. They restrict the holder to retirement at age 60 or after. Retirement at 50 is possible only if transferring to a personal pension but the tax-free cash entitlement is calculated differently. RAPs, also called Section 226 annuities, are not subject to the earnings cap.
Retirement date
Date an elderly patient or the patient’s spouse retired from active employment. For Medicare patients, this date is important when ascertaining the primary and secondary insurance coverage.
Retirement income policy (Life Insurance)
An endowment in which the benefit is a fraction of the life insurance policy’s face amount before the insured reaches retirement age.
Retirement options
They may include: purchase of an annuity; commutation of part of pension for tax-free lump with reduced retirement annuity; phased retirement; income drawdown; self-investment up to age 75; leave the fund fully invested until age 75.
Retro premium
Premium rate that the insurance company and the insured agree at the beginning of the pay period, but it is paid at the end of the period only if the group’s claim experience justifies it. The insurance company obtains a lower base premium at the beginning of the period and charges a retro premium retroactively at the end of the period.
Retroactive
Made effective to an earlier date.
Retroactive conversion (Life Insurance)
A conversion wherein a term life policy is converted to a cash value form, with the effective date the same as the date the policy was issued, instead of the actual date the conversion was made. In so doing, the cash value policy will be as old as the policy was.