FACTS:

You are the Benefits Specialist in the Human Resources Department at Palmer Paper Company. Tiffany Tucker has come to you for advice. Ms. Tucker works as a production manager and has been with the company for twenty-five (25) years. Ms. Tucker has been working for the company since she was eighteen (18) years old.

Ms. Tucker and her wife have always wanted to open their own bakery and have been baking special occasion cakes---birthdays, weddings, anniversaries, etc.---for the past ten (10) years. For the past five (5) years, Ms. Tucker's wife has been working fulltime developing the bakery business and also caring for the couple's ten (10) year old son. The business has now evolved to the point where it requires fulltime attention from both Ms. Tucker and her wife.

Ms. Tucker is thinking about resigning from Palmer Paper to work in the bakery business. Since she will be self-employed, Ms. Tucker would like to know what benefits she is entitled to and for what period of time. Palmer Paper offers a group health insurance plan. Employees are covered for both medical benefits and hospitalization. Employees may contribute the difference between an individual plan and a family plan if they want coverage for their spouse and children. Ms. Tucker has made the necessary contributions for her wife and son to have coverage. The company has a pension plan into which the company contributes three percent (3%) of each employee's gross annual income. Employees are vested after ten (10) years working for the company. Employees can begin collecting pension benefits beginning at age sixty (60).

Ms. Tucker is most concerned about continued health insurance coverage especially since she was diagnosed with cancer five years ago. She is worried that she may be denied health insurance coverage if she needs to purchase insurance. Ms. Tucker is also asking about continued health insurance coverage for her wife and child.

Ms. Tucker would like to know about her pension benefits. Specifically, what happens to her pension benefits if she resigns.

Advise Ms. Tucker about continued health insurance for herself and her family as well as what pension benefit she may be entitled to and when she could draw on the benefit. Explain the process for obtaining health insurance and a pension and the cost to Ms. Tucker.