Support Staff Policies & Procedures
Retiree Benefits Policy & Procedure
(Revised 10/2020)
Policy
Once an employee meets the minimum retirement requirements and becomes an official MSU retiree upon cessation of active service (please see Retiring from the University Policy), an official retiree qualifies for certain benefits:
- Retirement income is paid by the 403(b) Base Retirement Program, 403(b) Supplemental Retirement Program, 457(b) Deferred Compensation Plan and/or UNCRP plans as described in the plan documents, policies or other documentation for those programs, and as elected by the retiree.
- Depending on your Retirement Calculation Date (sometimes referred to as the Retirement Eligibility Date in the HR Payroll system), which often is your hire date but may be a later date based on your circumstances, group health care and dental coverage may be maintained for eligible retirees, with a University contribution based on the full-time equivalent (FTE) service months at the time of retirement. When an individual is actively employed, the University contribution level is determined based on employment percentage, i.e. an employee is considered half-time if they work 50 - 64.9%; three-quarter time if they work 65-89.9%; full-time if they work 90-100%. In retirement, the contribution level is based on accrued FTE service months. The charts below indicate the number of FTE service months required to receive the various University contribution levels.
- Support staff with a Retirement Calculation Date prior to July 1, 2002, and faculty and academic staff with a Retirement Calculation Date prior to July 1, 2005, who subsequently meets the minimum retirement requirements will receive a University contribution toward health care and dental coverage for the retiree, spouse and eligible dependents.
- Support staff with a Retirement Calculation Date on or after July 1, 2002 and prior to July 1, 2010, who subsequently meets 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 with a Retirement Calculation Date on or after July 1, 2005 and prior to July 1, 2010, 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. 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. Dental coverage may be maintained for eligible retirees, with a University contribution based on the full-time equivalent FTE service months at the time of retirement.
- For faculty, academic staff and support staff with a Retirement Calculation Date on or after July 1, 2010, who subsequently meets the minimum retirement requirements may elect to continue health care and dental coverage for the retiree, spouse and eligible dependents by paying the applicable premiums.
- Please review Other Eligible Individuals (OEI) for applicability to the items listed above.
If an employee retires with a minimum of 15 years of service and is at least 62 years of age, the following FTE service month* ranges determine the University health care and dental contributions during retirement.
|
FTE Service Months
|
University Contribution Level
|
| 90 - 116.99 |
Half-time |
| 117 - 161.99 |
Three-quarter time |
| 162 - 999.99 |
Full-time |
If an employee retires with 25 years of service at any age, the following FTE service month* ranges determine the University health care and dental contribution during retirement.
|
FTE Service Months
|
University Contribution Level
|
| 150 - 194.99 |
Half-time |
| 195 - 269.99 |
Three-quarter time |
| 270 - 999.99 |
Full-time |
* The contribution is based on the full-time equivalent (FTE) service months at the time of retirement.
- A University contribution may continue for the surviving spouse. Please review the Health and Dental Benefits for Surviving Spouses and Surviving Other Eligible Individuals Policy for further detail.
- Effective January 1, 2021 for MSU retiree health plans, retirees age 65 and over, and associated dependents of retirees age 65 and over are required to be covered under Medicare Parts A & B, if eligible. Any associated fees will be deducted by Medicare. Retirees are required to provide to MSU Human Resource the Medicare Beneficiary Identifier (MBI) number from the Medicare card for each individual eligible for Medicare to continue health and prescription drug coverage under the University group plan. Retirees and associated dependents eligible for Medicare will be automatically enrolled in Medicare Part D (prescription drug coverage) after enrolling in the MSU retiree Medicare Advantage health plan, and any associated fees will be deducted by Medicare.
- If the Medicare Beneficiary Identifier (MBI) number is not provided prior to 30 days after the Medicare eligibility date, the group plan coverage will be ended. If the coverage is ended, the retiree (and/or dependents) will have the ability to re-enroll during the next annual MSU Open Enrollment period or during a qualifying life event if the Medicare Beneficiary Identifier (MBI) number is provided for each individual eligible for Medicare.
- Dental coverage can be maintained at 100% (50% by the deceased retiree's dental plan and 50% as the surviving spouse's plan).
- Employee-Paid Life coverage for the employee and eligible dependent(s) may be maintained until the retiree reaches age 70. To maintain this coverage, retirees must make payments to MSU Human Resources.
- A University-paid life benefit is provided for individuals who participated in the Employee-Paid Life program prior to July 1, 1976 (July 1, 1977 for AFSCME 1585 and SSTU), and continued to participate until age 65 or retirement, whichever occurs first.
- Retiring University support staff may be eligible for a payoff of unused vacation time, personal leave, sick leave and a prorated longevity payment in the year of retirement, as described in the polices for those programs, or applicable collective bargaining agreements. Those payoffs may be contributed to the employee's appropriate retirement plan accounts, up to the applicable IRS limits. Please contact Human Resources for more information.
- Other miscellaneous benefits (e.g. parking permit) detail can be found at Retirement Information & Helpful Hints.
- Contributions to Flexible Spending Accounts cease at retirement.
- Please review Other Eligible Individuals (OEI) for applicability to the items listed above.
- If an official retiree is hired back by MSU in an active paid position, the retiree will receive a University contribution to health care and dental benefits based on the better of the retiree's contribution level (based on FTE Service Months as listed above) or the new employment percentage contribution level.
- If an active employee in a benefits eligible position is considered "vested" by meeting one of the minimum retirement requirements (please see the Retiring from the University Policy) and has not retired, the active employee will receive a University contribution to health care and dental benefits based on the better of the employee's active benefits eligible employment percentage contribution level or the "vested" retiree contribution level.
Procedure
Employee:
- Contact your Investment Vendor directly to inquire about retirement income forms and options.
- Review the MSU Human Resources website for information, or contact MSU Human Resources to inquire about the expected changes of your benefits once you retire from MSU.
- If you are a support staff employee who is retiring, and your Retirement Calculation Date (which can be found in the Personal Profile tile in the EBS Portal) is between July 1, 2002 and June 30, 2010, you will need to make sure you are reviewing the appropriate retiree health care and dental chart, as the University contribution is for the retiree only. The appropriate rate chart will include the applicable premium to cover the eligible dependents. Review the information on the HR website and view the Retirees Open Enrollment Guide, or contact the HR Solutions Center for more details.
- As an official MSU retiree, you will receive information each year regarding open enrollment for the benefits that you are eligible to choose, including health care and dental options. Review this information carefully to stay informed of any changes to your retiree benefits on an annual basis, and if any actions are necessary on your part.
Refer questions to:
MSU Human Resources (517-353-4434, 800-535-4434, or SolutionsCenter@hr.msu.edu)
Revision History -
10/2/2020 - added details related to the new Medicare Advantage retiree health and prescription drug plan effective January 1, 2021.
10/9/2018 - added clarification on the University contribution for support staff employees with a Retirement Calculation Date prior to July 1, 2002, and for faculty and academic staff with a Retirement Calculation Date prior to July 1, 2005.
11/2/2016 - added clarification on support staff payoffs at retirement, and University contributions for retiree benefits for rehired retirees and vested active employees.
10/4/2016 - this policy was created by deleting retiree benefits policy details from the Retiring from the University policy and transferring it to this policy, along with removing "hire date," replacing with "Retirement Calculation Date" and other updates.
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