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Policies, Union Contracts, Handbooks > Faculty & Academic Staff Handbooks > Faculty Handbook > Faculty and Academic Staff Retirement and Benefit Programs
Waiver of Health Plan Coverage
VII. FACULTY AND ACADEMIC STAFF RETIREMENT AND BENEFIT PROGRAMS (Cont.)
OPTIONAL BENEFITS (Cont.)1
Waiver of Health Plan Coverage
A faculty/academic staff member who is covered by another group health plan is eligible to waive their MSU health care coverage and receive up to a $600 cash payment. (Retirees and faculty/academic staff whose spouses or MSU-recognized same-sex domestic partners are employed at MSU are not eligible for the waiver option.) The normal waiver period is July 1 through June 30, with payment to be received the following July.
- The cash payment is considered taxable income.
- If other coverage is involuntarily discontinued, the faculty/academic staff member has 31 days to enroll in an MSU health care plan with the waiver payment prorated.
- Individuals newly hired, terminated, going on unpaid leave of absence, or retiring will also receive a prorated payment.
Individuals accrue points based on their employment percent and the number of months they are enrolled in the waiver: 1 point for each month in waiver if full-time; .75 for 3/4-time or .5 if half-time. See chart below.
| Points accrued |
Waiver payments |
| Full 12 points |
$600 |
| 9 through 11.75 points |
$450 |
| 6 through 8.75 points |
$300 |
| 3 through 5.75 points |
$150 |
| Less than 3 points |
$0 |
Eligibility
Faculty/academic staff appointed 50% time or more for nine months or more are eligible to waive MSU’s health plan coverage within 60 days of appointment or during the annual open enrollment period. A completed form is not required each year during open enrollment in order to continue participation in the waiver.
Footnote:
For 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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