Comprehensive Annual Financial Report for the Fiscal Year Ended 1996 Jun 30

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Medicare eligible plan members are assumed to be Medicare-insured.
After an annual $250 deductible, MUS reimburses 80% of the first $3,000 in medical claims and 100% thereafter. The plan automatically reduces claim reimbursements for members eligible for Medicare even if the member is not enrolled in Medicare. As of June 1996, 1,193 retirees are enrolled in the MUS plan. Funding for the retiree health plan is on a pay-as-you-go basis. Based on amounts recorded through June 1996, estimated expen
...ditures of $2,636,934 were recognized for postemployment health care benefits. Of this amount, $2,342,793, was covered by premiums paid by retirees and $294,141 was paid by the MUS.
8. DEFERRED COMPENSATION PLAN Since 1976, the State of Montana has offered a deferred compensation plan which allows employees to set aside a portion of their salary each payday towards retirement while deferring the State and Federal income taxes until future years. The payroll deferrals are invested with Nationwide Insurance.


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