Effect of Retirement on Benefits
FULL TIME EQUIVALENT (FTE) SERVICE MONTHS
If an employee retires with 15 or more years of service and is at least age 62, (and was hired prior to 7/01/2010) the following FTE service month ranges will determine their health, prescription drug coverage and dental contribution level during retirement.
| 1/2 Contribution Level | 3/4 Contribution Level | Full Contribution Level |
| 90.00 - 116.99 FTE | 117.00 - 161.99 FTE | 162.00 - 999.99 FTE |
If an employee retires with 25 or more years of service at any age, (and was hired prior to 7/01/2010) the following FTE service month ranges will determine their health, prescription drug coverage and dental contribution level during retirement.
| 1/2 Contribution Level | 3/4 Contribution Level | Full Contribution Level |
| 150.00 - 194.99 FTE | 195.00 - 269.99 FTE |
270.00 - 999.99 FTE |
University Contribution Criteria toward Health and Dental
| University Contribution Levels are based on the number of Full Time Equivalent (FTE) Service Months at Retirement | |
| All Employees hired prior to 7/01/02 and Faculty & Academic Staff hired prior to 7/01/05 | University contribution toward the premium will apply to health, prescription, and dental coverage for the retiree, spouse, and eligible dependents. |
| Support Staff hired on or after 7/01/02 and prior to 7/01/10 | University contribution toward the premium will apply to health, prescription, and dental coverage for the retiree only. The retiree may elect to continue coverage for spouse and eligible dependents by paying the applicable premium. |
| Faculty & Academic Staff hired on or after 7/01/05 and prior to 7/01/10 | The University will contribute to the lowest cost health and dental plan's single rate for which the 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. The designation is irrevocable regardless of circumstance, including returning to work or death. The 50/50 benefit is non-transferable to future spouses. The retiree may elect to continue coverage for eligible dependents by paying the applicable premium. |
| All Employees hired on or after 7/01/10 | The retiree may elect to continue coverage for the retiree, spouse, and eligible dependents by paying the applicable premium. |
The following is a short summary of how retirement may impact additional MSU benefits for retirees.
- Course Fee Courtesy
- Dental Plan
- Flexible Spending Accounts
- Full Time Equivalent (FTE) Service Months
- General Information
- Health Care Coverage
- Health Plan Waiver
- Insurance Benefits
- Minimum Retirement Requirement
- Other Eligible Individual (OEI)
- University Contribution Criteria toward Health and Dental
COURSE FEE COURTESY
Official retirees, who were eligible at the time of their retirement, retain their eligibility. Spouse and dependent children continue to be eligible for one-half the cost of tuition at MSU as defined by the program.
DENTAL PLAN
Retirees* may continue to receive a contribution toward dental coverage based on their Full Time Equivalent (FTE) Service Months at retirement. Contribution toward spouse and dependent coverage will be determined by the University Contribution Criteria. 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.
FLEXIBLE SPENDING ACCOUNTS
Eligibility to participate in the Flexible Spending Accounts, either the Dependent Care Spending Account (DCSA) or the Health Care Spending Account (HCSA), cease with the date of retirement. Reimbursement for claims incurred prior to retirement may still be submitted after retirement.
At the time of retirement, individuals will receive information confirming retirement and benefits from Michigan State University.
Retirees will continue to receive Open Enrollment information every year.
Certificates and plan brochures are available at MSU Human Resources Benefits Summaries & Brochures, or at (http://www.hr.msu.edu/benefits/summaries.htm), which describe the coverages in further detail.
Retirees * may continue to receive a contribution toward health and prescription coverage based on their Full Time Equivalent (FTE) Service Months at retirement. Contribution toward spouse and dependent coverage will be determined by the University Contribution Criteria. Retirees are billed on a regular basis for any premium payment required.
Prior to age 65
The retiree * will only participate in the MSU health plan.
Age 65 and After
Retirees * and age appropriate dependents must enroll in Medicare (Parts A and B). There is a premium for Medicare Part B, that is the responsibility of the retiree. 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). MSU Blue Cross/Blue Shield or Blue Care Network coverage is adjusted to a Medicare Supplement when you retire. Retirees and dependents should not enroll in Medicare D, as Caremark prescription service remains in effect.
Please note: 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 and should contact Social Security, at least three months before turning 65. Also, please remind your health plan providers to file claims with both Medicare and your MSU health plan provider.
HEALTH PLAN WAIVER
The Health Plan Waiver option ceases with your retirement. Based on the number of points you accrue prior to retirement, you may receive a check for the prorated amount. You may enroll in a health care plan at retirement.
Employees may maintain the Optional Employee-Paid Life Insurance after retirement (until age70) by sending premium payments to the HR Benefits office. Retirees are billed for premiums on an annual basis. The Optional Employee-Paid Life Insurance may be converted to a private plan after age 70.
In addition, employees enrolled in the Optional Employee-Paid Life Insurance 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.
The Basic Employer-Paid Life Insurance will cease with retirement, but it may be converted to a private policy within 31 days of retirement by calling Prudential at 1-877-232-3555.
The Voluntary Accidental Death & Dismemberment (AD&D) Insurance, the MSU Travel Insurance, and the MSU Long Term Disability coverage, all cease with retirement. There are no conversion options for these plans.
Long Term Care Insurance, administered by John Hancock, will continue in retirement. Retirees will be billed directly from John Hancock. Additional questions can be addressed to the John Hancock customer service at 1-800-705-4529.
OTHER ELIGIBLE INDIVIDUAL (OEI):
Continuation of health and dental coverage in retirement, with MSU contribution, for an Other Eligible Individual and eligible dependents may occur if the Other Eligible Individual was officially registered on or before January 1, 2009 and the MSU employee was retired or had met the minimum retirement eligibility criteria on or before January 1, 2009.
If either of the above conditions were not met as of January 1, 2009, the Other Eligible Individual is not eligible to receive the MSU contribution; however, the Other Eligible Individual is eligible to enroll and purchase a health/dental plan consistent with the plan the retiree is enrolled in.
*Hired prior to 7/01/2010
