Effect of Retirement on Benefits

The following is a brief description of benefits available to official retirees of Michigan State University.

An official MSU retiree requires a minimum of 15 or more years of service and at least age 62 or 25 years of service at any age. For additional information on retiring from MSU, please see the Retiring from the University Policy. Information related to your retirement eligibility is available in the EBS Portal.

Health, Prescription Drug and Dental Benefits

Eligible retirees may continue to receive a contribution toward health, prescription drug coverage, and dental based on their full time equivalent (FTE) service months at retirement, please see the Retiree Benefits Policy. Health Care Plans/Prescription Drug Coverage you may select at the time of retirement:

  • All covered individuals on your plan are under age 65 and NOT eligible for Medicare, you may select from Blue Care Network (BCN) or Community Blue PPO.
  • All covered individuals on your plan are age 65 or older and/or eligible for Medicare, you may select from Blue Cross/Blue Shield Traditional or Blue Care Network (BCN). 
  • Some individuals covered on you plan are eligible for Medicare while others are not, you may select from Blue Cross/Blue Shield Transition or Blue Care Network (BCN).
  • If you are enrolled in the CDHP at the time of retirement, you may continue participation in the health plan, or transfer to another applicable health plan described above. 
  • CVS/Caremark Prescription drug coverage is automatically part of each health plan.
  • If any of the covered individuals enrolled in Community Blue are eligible for Medicare, coverage will be automatically changed to the lowest cost eligible health plan.
  • If you are not enrolled in a health plan or enrolled in the health plan waiver at the time of retirement, you may elect a health plan as described above. 

Dental Coverage you may select at the time of retirement:

  • Delta Dental
  • Aetna Premium DMO

If you are not enrolled in a dental plan at the time of retirement, you may elect a dental plan as described above.

For details on Health and Dental plan coverage and cost, please see the Retirees Open Enrollment Guide. Available plans may be restricted based on your permanent address.

The following is a short summary of how retirement may impact additional MSU benefits for retirees.

Course Fee Courtesy

Official retirees, who were eligible at the time of their retirement, retain their eligibility for Course Fee Courtesy. Spouse and dependent children continue to be eligible for one-half the cost of tuition at MSU as defined by the program.

Flexible Spending Accounts

Eligibility to participate in the Flexible Spending Accounts, either the Dependent Care Flexible Spending Account (Dependent Care FSA) or the Health Flexible Spending Account (Health FSA), cease with the date of retirement. Reimbursement for claims incurred prior to retirement may still be submitted after retirement. If you participate in the Health FSA at the time of retirement, you may be eligible to continue under COBRA.

General Information

At the time of retirement, individuals will receive information regarding 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, which describe the coverages in further detail.

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.

Health Savings Account

If you are currently enrolled in a Health Savings Account (HSA) at the time of retirement, please contact the administrator of the HSA (Health Equity) at 877-219-4506 for more information.

Insurance Benefits

Employees may maintain the Optional Employee-Paid Life Insurance coverages after retirement (until age 70). Retirees are billed for premiums from Human Resources. The Optional Employee-Paid Life Insurance may be converted to a private plan after age 70.

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.

Voluntary Benefits

For information on continuation of Voluntary Benefits purchased through MSU Benefits Plus, contact Corestream at 888-758-7575 or visit the website at www.msubenefitsplus.com.

Grandfathered Long Term Care Insurance, administered by John Hancock, may 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 may be available for an Other Eligible Individual and eligible dependents.

 

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