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Your Complete Dictionary to Retirement

Retirement is a world of confusion, especially if you don’t know what the words people use to describe it mean. Especially in the world of finance and savings, there’s a whole lot of words germane to just retirement. You may have heard some of these words, or if you’ve spoken to a financial advisor to develop your retirement plan. But if you are like the majority of most americans, you probably don’t understand a good number of the words used in reference to retirement and subsequent financial planning. In this informative blog post, the retirement experts at Benistar will take you through the most common retirement terms. There are seventeen terms that are most commonly used to talk about financial retirement themes. They include:401 (k), required minimum distribution, annuities, rollover IRA, bank loan funds, Roth 401 (k), defined benefits pension, Roth IRA, defined contribution plan, Individual retirement account, life cycle fund and SIMPLE IRA.

As you can see IRA is a big theme. So what is an IRA? Well, an IRA is an individual retirement account, an investing tool used by individual people to earn and keep track of retirement savings. Traditional and Roth IRAs are created by individual taxpayers. Traditional IRAs stand out as they are tax deductible, in most cases. Traditional IRAs are a great option in preparing for retirement, if you qualify for them. The other form of individual taxpayer IRA is a Roth IRA, which is not tax deductible. However, eligible distributions of this type of IRA are tax-free. A Rollover IRA is a transfer of money from a retirement account into an IRA.

There quite a few other terms you may have heard in the introduction. One is 401 (k), a retirement behemoth. A 401 (k) is, in layman’s terms, the option for an employee to take compensation in cash or to have it deferred to to a 401 (k) account, an account used in anticipation of retirement. A Roth 401 (k) is a 401 (k) in which you pay taxes initially. A required minimum distribution is the minimum amount of money that must be withdrawn from an account each year, especially in terms of retirement-related accounts, such as an IRA. Bank loan funds are mutual funds that buy loans created by banks and other various financial institutions. A Defined Benefits Plan is something you may encounter in the workplace- it is when the sponsor gives employees a lump sum upon retirement, instead of a deferred income stream.

Furthermore, an annuity is a lump sum of cash that is deferred to be distributed via a monthly stream of monetary income for a set period of time. Defined contribution plans are those in which a certain amount of money is set aside every year by the company, in anticipation of the retirement of the employees. Lastly, a Lifecycle Fund is a mutual fund in which the money in an account is systematically adjusted to be proportional to the lifespan of the fund itself. If you still think you may need a little help in preparing for retirement, look no further than the experts at Benistar. They can make sure you’re adequately prepared for retirement and will help you save a buck in the process.


How to Time Your Medicare Enrollment

Click here to read a quick article in Time Magazine on How To Time Your Medicare Enrollment. The article explains the difference between initial, Medigap, general and special enrollments. If you’d like to talk to one of our specialists on setting up enrollment for your post-65 retiree group, contact us at

New Medicare data available – Benistar

The CMS has released new data on hospital and physician utilization.  “These data releases will give patients, researchers, and providers continued access to information to transform the health care delivery system,” said acting CMS Administrator Andy Slavitt. “It’s important for consumers, their providers, researchers and other stakeholders to understand the delivery of care and spending under the Medicare program.”  Read the full study here:

Benistar focuses on the administration of retiree medical and prescription drug plans.


Benistar Emerges as Leader in Retiree Benefits

Benistar Emerges as a Nationwide Leader in Retiree Benefits Administration and Insurance Services

After providing extraordinary service for more than two decades, Benistar has now emerged as the leading organization in the nation for design, installation, and administration of post-65 group retiree medical benefits.

With specialized service in health and related insurance, actuarial, underwriting, claims management, and third-party administrative services, Benistar is now a preferred alternative for retiree benefits administration and insurance services. The company has gained the trust from benefits professionals and Medicare beneficiaries as their retiree benefits service provider of choice by offering much more than just administrative or advisory services. As seen at, Benistar designs, underwrites, delivers and administers complete welfare benefit solutions.

The benefit experts from Benistar are highly proficient in due diligence, restructuring, benefits liability evaluation, stakeholder assistance, advisor support, and investor services. The company operates an integrated portfolio of service solutions offering a full range of healthcare benefit services including Third Party Administration (TPA Services), Retiree Group Benefits Exchange, Employer Group Waiver Program (EGWP) and Prescription Drug (Rx) products, Reinsurance and Risk Management solutions, and Retiree Member Call Center services. Find out more about Benistar Professionals at

  • Retiree liability evaluations, carve-outs, OPEB liability transfers and settlements for medical, Rx, group life, and disability obligations
  • Benefit plan cost containment, reductions and financial recapture strategies
  • Welfare Benefit Plan design, installation, and administration
  • Eligibility, Coordination of Benefits, Subrogation and related Audit services
  • Traditional and specialty risk placement and other voluntary supplemental benefits
  • HSA, HRA, MSA and other account based solutions
  • Plan Sponsor Pre and post-bankruptcy filing solutions

For more information, see more about Benistar at

About Benistar:  Benistar was established in 1978 and is a nationwide leader in the design and installation of post-65 retiree medical benefits plans.  The company focuses its efforts on administration of retiree health insurance and prescription drug plans and works with consultants and brokers to provide medical and prescription solutions for companies worldwide.



For More Information:

Jeff Gordon, Media Director

Benistar Admin Services, Inc.

25 Seir Hill Road

Norwalk, CT 06850

(203) 969-6000


Benistar Introduces New Retiree Medical Benefits Plans

Benistar, the nationwide leader in the design, installation and administration of group retiree medical benefits, has just launched a series of new retiree medical benefit plans.

Benistar proudly announces the introduction of their new retiree medical benefit programs. Since the original inception of the company in 1978, Benistar has steadily emerged as a trusted provider of group retiree medical benefits. The company’s primary area of specialization is the administration of employer group retiree medical and prescription drug plans. Benistar provides retiree benefit solutions for publicly and privately-held companies, labor unions, city and county government entities, educational organizations, and religious organizations. To find out more, please visit the official website of Benistar as seen at

Benistar’s group retiree medical plans are designed to pay for the costs that are recognized but not covered by Medicare Parts A and B. The experienced and knowledgeable service representatives of the company will assist the plan sponsor in developing a cost effective and sustainable solution for its retirees from design through communication and ongoing service support. The company assists plan members in seamlessly transitioning from current arrangements without the need for enrollment forms or other challenging technology. The company’s efficient Retiree Customer Service Center representatives are available over the phone and in person to help the retirees with all of their benefit needs and questions.

The retiree prescription drug plans from Benistar are tailor-made specifically for groups under Medicare Part D. In collaboration with its national PBM and insurance carrier partners, Benistar is fully compliant with all CMS regulation related to Part D plans that are supported by Benistar.

Benistar Completes Record Year

BENISTAR, one of the nation’s largest administrators of group retiree medical and prescription drug plans, reported its most successful year for new business for the fiscal year ending June 30, 2011.

To open the Press Release in a new window, click here

Sweeping Changes Could Slash Generous Retirement Benefits

Some articles the staff at Benistar think you should read:

New York Faces $200 Billion in Retiree Health Costs

Excerpt: “The daunting size of the health care obligation raises the possibility that localities will be forced at some point to choose between paying their retirees’ medical costs and paying the investors who hold their bonds. Government officials aim to satisfy both groups, and have even made painful cuts in local services when necessary to keep up with both sets of payments.”

(The New York Times; free registration required)

New Ways to Manage Retiree Benefits

Excerpt: “Milliman offers a four-step strategy for managing GASB 45 sticker shock.” (Milliman)

Sweeping Changes Could Slash Generous Retirement Benefits of Former Cincinnati City Employees and Future Retirees

Excerpt: “With the troubled city retirement system struggling to dig out of a $1 billion-plus long-term hole, a new pension board – one on which outside financial experts recently replaced city officials with personal stakes in the decisions – is reviewing changes to lower benefits, raise retirement ages and cap pensions well below the current 90 percent-of-salary ceiling.”

Maryland Panel Recommends Sweeping Retirement Benefit Changes for Public Employees

Excerpt: “Maryland state workers would have to work for 15 years instead of the current five to become eligible for pension or retiree health care benefits, according to new recommendations from a study panel. An Associated Press news report said the Public Employees’ & Retirees’ Benefit Sustainability Commission is also recommending that state employees would have to spend 25 years working for the state, instead of 16 years, to receive the maximum retiree health care premium subsidy and put in 10 years instead of five to become pension vested.” (PLANSPONSOR.COM)

Retirement Benefits Helping Employers Attract and Retain New Workers, Towers Watson Survey …

Retirement benefits — especially defined benefit (DB) programs — are giving employers an added advantage when it comes to attracting and retaining new […]


“The past cannot be changed. The future is yet in your power.”

Mary Pickford

Health Care Reform Drug Subsidy Deduction

3rd Quarter 2010
Some articles the staff at Benistar think you should read:

AARP Says Brand-Name Drug Prices Up 8% in 2009
Excerpt: “Over the last five years, according to the report . . ., the retail prices for the most popular brand-name drugs increased 41.5 percent, while the consumer price index rose 13.3 percent.”
(The New York Times; free registration required)

Health Care Reform: Elimination of Retiree Drug Subsidy Deduction
Employers that provide retiree prescription drug coverage should analyze the increased future tax liability and the current accounting charges necessary to retain retiree prescription drug coverage, and evaluate the practical and legal risks of eliminating this benefit.

N.Y. Faces $200 Billion in Retiree Health Costs
The cities, counties and authorities of New York have promised more than $200 billion worth of health benefits to their retirees while setting aside almost nothing, putting the public work force on a collision course with the taxpayers who are expected to foot the bill.

Medicare actuary: Reform will cost some seniors
A Medicare official concedes that seniors may have to dig deeper into their wallets next year thanks to the health care law.

Dealing with Medicare Part B and COBRA CoverageGenerally, the Socal Security Act provides that individuals may enroll in Medicare Part B (which covers doctors visits and other outpatient services) when they reach age 65. If they fail to do so during a seven-month initial enrollment period surrounding their 65th birthday,