Benefits

Optional Leave To Retirement

Michigan State University policy allows for a Mutual Agreement Leave for up to two years. This leave can be used to serve the final two years prior to retirement. However, Faculty/Staff must first request approval of the leave from their department. The following list provides additional information on the Optional Leave To Retirement:

Faculty/Staff may begin drawing their retirement income during the leave. Faculty/Staff can continue Health benefits during the leave, at their cost. Staff can continue Dental benefits during the leave, at their cost. Faculty may continue Dental benefits during the leave at no cost. Faculty/Staff can allow the Health and/or Dental benefits to lapse during the leave, and pick them back up after reaching official retirement. Staff eligible for the University Sick Leave payoff will receive that payment at the beginning of the leave, rather than at retirement. The Personal Action Notice (PAN) for Support Staff or the Leave of Absence form for Faculty, Academic Staff or Executive Management must accompany the Request for Retirement form. This generates the bill for the health premiums, and releases the sick leave payoff. The Corporate Travel Card is valid throughout the leave, and becomes void upon actual retirement. Faculty/Staff on approved leave are able to continue parking privileges during the leave by making payment directly to DPPS. Documentation of the leave should be presented at the time of payment. At the time of official retirement, the Retiree may seek Retiree Parking privileges from DPSS. Contact DDPS at (517) 355-8440 for additional information. Faculty/Staff on approved leave continue to be eligible for the Course Fee Courtesy benefit. Faculty/Staff on approved leave may accept an overseas or temporary assignment during the leave. Basic Employer-Paid Life Insurance ends 180 days after unpaid leave begins. Faculty/Staff may convert this policy within 31 days of expiration by contacting Prudential at 1-877-232-3555.