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Other Retirement Information

VII. FACULTY AND ACADEMIC STAFF RETIREMENT AND BENEFIT PROGRAMS (Cont.)

RETIREMENT PLANS (Cont.)¹

OTHER RETIREMENT INFORMATION

1. To be considered a retiree from Michigan State University, a faculty/academic staff member must meet one of the following minimum University retirement requirements:

   • Be at least 62 years of age and have completed 15 years of service; or

   • Have completed 25 years of service at any age.

2. Faculty/academic staff meeting the minimum University retirement requirements will remain eligible to maintain health and dental coverage and receive a University contribution toward the premiums based on the number of full-time equivalent (FTE) service months at retirement.
   
   For faculty and academic staff hired on or after July 1, 2005, the University will contribute to the lowest cost health plan’s single rate for which the employee/retiree is eligible. (The contribution is based on the full-time equivalent (FTE) service months at the time of retirement).   At retirement, the employee must designate whether the employee receives the University contribution or whether the contribution is to be split 50/50 between the employee and his/her spouse or MSU-recognized same-sex domestic partner.  This designation is irrevocable regardless of circumstance, including returning to work or death.  The designation of the 50/50 contribution is also non-transferable to future spouses or MSU recognized same-sex domestic partners.
   
   

   Retirees (their spouse or MSU-recognized same-sex domestic partner) age 65 and over are required to enroll for Medicare Parts A & B at which time MSU's health plan coverage is adjusted to a Medicare supplement policy.  Medicare Part B requires a monthly premium that is not reimbursed by MSU. Individuals may contact their local Social Security office for information on the monthly premium cost for Medicare Part B.

3. Faculty/academic staff meeting the minimum University retirement requirements may continue participation in the employee-paid life program after retirement until age 70.

4. Faculty/academic staff meeting the minimum University retirement requirements and who are appointed  less than 90% time may be eligible to continue receiving the full University contribution toward the health and dental plans based on their FTE service months; continue coverage under Long Term Disability, Expanded Life, and may continue participation in the Course Fee Courtesy program. If you are vested for retirement, please contact MSU Human Resources Benefits at (517)353-4434.

5. Faculty/academic staff members participating in the employee-paid life plan at the time of retirement and who were enrolled prior to July 1, 1976 will receive a $2,000 life benefit fully paid by the University.

6. Faculty/academic staff employed prior to July 1, 1958, who meet the minimum University retirement requirements as defined above, may have "frozen benefits" from the University Non-Contributory Retirement Plan, in addition to their base retirement plan. Full information is available from MSU Human Resources Benefits.

7. Retirement survivor options, if any, are available and may be selected immediately prior to retirement. In the event a survivor option is selected, the spouse is guaranteed payments for life. Spouses of retired faculty/academic staff members are guaranteed lifetime participation in the health and dental plans.

¹For benefit purposes only, half-time is defined as 50.0-64.9 percent time; three-quarter time is defined as 65.0-89.9 percent time; full-time is 90.0-100.0 percent time.

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