Effect of Retirement on Benefits

HEALTH CARE COVERAGE
Prior to age 65
If participating in an MSU health and prescription plan, the coverage remains in force with the University contribution toward the premium**, based on the number of Full-Time Equivalent (FTE) Service Months at retirement. Coverage is available for the retiree, spouse, MSU recognized same-sex domestic partner and any eligible dependents***. Retirees are billed on a regular basis for any premium payment required.

Age 65 and After
Retirees and their spouse or MSU recognized same-sex domestic partner (when 65 or older) must enroll in Medicare (Parts A and B). There is a premium for Medicare Part B. Individuals already receiving Social Security benefits should not have to apply for Medicare. You should automatically be enrolled in both Part A and B and your Medicare card should be mailed to you about three months before your 65th birthday. Individuals not receiving Social Security benefits need to apply for Medicare at their local Social Security Office, at least three months before turning 65. MSU Blue Cross/Blue Shield or Physicians Health Plan coverage is adjusted to a Medicare Supplement. You and your spouse or MSU recognized same-sex domestic partner, continue to receive the University contribution toward the premium, which is based upon the number of FTE service months at retirement. Remind health plan providers to file claims with both Medicare and your MSU health plan provider. Community Blue is unable to coordinate with Medicare, if enrolled with Community Blue you will be transferred to another MSU health plan provider when you obtain Medicare (Parts A and B). Retirees are billed on a regular basis for any premium payment required.

DENTAL PLAN
If participating in an MSU dental plan, the coverage remains in force with the University contribution toward the premium**, based upon the number of Full-Time Equivalent (FTE) Service Months at retirement. Coverage is available for the retiree, spouse, MSU recognized same-sex domestic partner and any eligible dependents. Retirees are billed on a regular basis for any premium payment required. If enrolled in Aetna DMO and you move outside their service area, you must transfer to the Delta Dental Plan.

HEALTH PLAN WAIVER
The Health Plan Waiver option ceases with your retirement. Based on the number of points you accrue prior to retirement, you will receive a check for the prorated amount. You may enroll in a health care plan at retirement.

FULL TIME EQUIVALENT (FTE) SERVICE MONTHS
Employees meeting the minimum retirement requirements* will remain eligible to maintain health, prescription drug coverage and dental coverage and receive the employer's contribution based on the following.***

If an employee retires with 15 or more years of service and is at least age 62, the following FTE service month ranges will determine their health, prescription drug coverage and dental contribution during retirement.

If an employee retires with 25 or more years of service at any age, the following FTE service month ranges will determine their health, prescription drug coverage and dental contribution during retirement.

LIFE INSURANCE BENEFITS
Employees may maintain the Employee-Paid Life benefit after retirement (until age70) by sending premium payments to the Benefits office. Retirees are billed for premiums on an annual basis. The Employee-Paid Life plan may be converted to a private plan after age 70.

In addition, employees enrolled in the Employee-Paid Life program prior to July 1, 1976 (July 1977 for AFSCME), with continued participation, will have a life benefit in the amount of $2,000 at retirement. The University will pay the premium.

COURSE FEE COURTESY
Spouse or MSU recognized same-sex domestic partner and dependent children continue to be eligible for one-half the cost of tuition at MSU as defined by the program.

GENERAL INFORMATION

Benefits cease on the date of retirement for Accidental Death and Dismemberment, Long Term Disability and Basic Employer-Paid Life, if covered by these plans. The Basic Employer-Paid Life plan may be converted to a private policy within 31 days of retirement by calling Prudential at 1-877-232-3555.

Certificates and plan brochures are available in MSU Human Resources Benefits, which describe the coverages in further detail.
At the time of retirement, individuals receive information confirming retirement and benefits from Michigan State University.

For further information please contact MSU Human Resources Benefits at 140 Nisbet Building, (517) 353-4434 between 8:00 a.m. and 5:00 p.m., Monday through Friday.

*Minimum retirement requirements are 15 or more years of service and at least age 62 or 25 years of service at any age.

**Which is determined at least annually.

***For Support Staff hired on or after July 1, 2002, who subsequently meet the minimum retirement requirements will receive a University contribution toward health care and dental coverage for the retiree only. The retiree may pay the applicable premium to cover eligible dependents.

***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. 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.

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MSU is an affirmative-action, equal-opportunity employer.
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© 2009 Michigan State University Board of Trustees. East Lansing, MI 48824.
Last Updated: March 31, 2009