Love your current group health plan through Lockheed Martin but worried it will disappear when you are no longer working? Fear not, COBRA is here to save the day. No, not the fearsome snake, but the federal law that allows a former employee to continue group health coverage for a certain period of time after departing with the employer. The acronym is quite the mouthful, Consolidated Omnibus Reconciliation Act, but simply means you can keep your Lockheed health plan even after you aren’t working for Lockheed, as long as a qualifying event occurred. The chart below explains when you are eligible.

Event Length of Coverage
If your employment with the Company terminates
(for reasons other than gross misconduct)
Coverage for you and your dependents may last
for up to 18 months*
If coverage stops because you no longer meet the
eligibility requirements
Coverage for you and your dependents may last
for up to 18 months*
If coverage stops because you are on a military leave Coverage for you and your dependents may last
for up to 24 months
If you die Coverage for your dependents may last for up to
36 months
If you and your spouse divorce, become legally
separated, or your marriage is annulled
Coverage for your spouse and/or eligible
dependent children may last for up to
36 months**
If your domestic partnership ends Coverage for that dependent child may last for up
to 36 months**
If a child loses dependent status Coverage for that dependent child may last for up
to 36 months**
If you are laid off Coverage for you and your dependents may last
for up to 18 months*
If you fail to return to work at the end of your
family medical leave
Coverage for you and your dependents may last
for up to 18 months*
*An 18-month continuation period may be extended to 29 months if you or a dependent is considered disabled
under Social Security rules within 60 days of the date you qualify for continuation of coverage due to one of the
events noted above.  Coverage may continue for up to 29 months as long as the disability continues throughout
the continuation period and you notify the COBRA administrator of the disability within 60 days after the date of
the disability determination and before the end of the initial 18-month period.  This 11-month extension applies to
you and your dependents, not just the disabled individual.  You may be charged up to 150% of the applicable
cost during the 11-month extension.
**If you do not call or provide written notice to the LMESC within 60 days after the event, COBRA rights will be
lost for that event.

Important points:

• COBRA coverage is paid by you (including a two percent administrative fee), but keep in mind that the cost may be cheaper than what is available on the insurance marketplace and/or the benefits may be better

• COBRA is not available if you are entitled to Medicare benefits

• Continued coverage can cover your dependent(s) and/or spouse

To elect COBRA coverage:

• Call or provide written notice to Lockheed Martin Employee Service Center with 60 days of the qualifying event

• Return the election form within 60 days after the later of the

o Date you or dependent(s) lose coverage

o Date you or dependent(s) are notified of your right to continue coverage

• Initial premium is due within 45 days of election

Maintaining adequate health insurance is critical during employment and after, and thanks to COBRA, you have the option to keep the coverage offered by Lockheed Martin, should you choose to do so.

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointment, click here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.