Life Events - Retirement

Congratulations! As you make this exciting transition, here is important benefits and financial information about:

• Health insurance coverage
• Life insurance coverage
• Paid time off
• Privileges and services available to Rutgers retirees
• Retirement planning
• Resources to help you

Health Insurance Coverage

• Medical, dental, and prescription drug coverage continues for one month after retirement.
• Retirees may continue Dental, Prescription Drug, and Vision Care coverage under COBRA for up to 18 months.
• University Human Resources will send you a COBRA notice along with the COBRA rates at the time of retirement.
• Vision Care coverage ends on your retirement date.
• All retiree medical plans include prescription drug coverage; therefore, it may not be cost effective to continue prescription drugs under COBRA.
• Retirees may elect retiree dental coverage; therefore, it may not be cost effective to continue dental coverage under COBRA.
• Your spouse or civil union partner or domestic partner, and dependent children are eligible for coverage under retiree medical and dental coverage.
• A spouse or civil union partner or domestic partner, and/or dependent children of a deceased retiree may continue coverage by paying the full group rate.
• Retirees receive medical application and cost information (if applicable) from the Division of Pensions and Benefits one month before the retirement date.
• Retirees and their dependents age 65 or older must be enrolled in Medicare A and B.
• Retirees with 25 or more years of pension-credited service receive reimbursement of Medicare Part B premiums. If 25 years of pension-credited service is acquired after July 1, 1997, reimbursement is limited to $46.10 per month. Medicare Part B premiums are not reimbursed if a retiree has not attained 25 years of pension-credited service at the time of retirement.

Life Insurance

Public Employee's Retirement System (PERS)

• Requirement - 10 or more years of pension service
• Benefit is three-sixteenths (3/16) of last 12 months’ salary
• Conversion privilege, without medical exam, is available
• Application for conversion required within 31 days of termination of employment

Police and Fireman's Retirement System (PFRS)

• Requirement - 10 or more years of pension service
• Benefit is one-half of Final Compensation
• Conversion privilege, without medical exam, is available
• Application for conversion required within 31 days of termination of employment

Alternate Benefit Program (ABP)

• Requirement - age 60 or older with 10 or more years of pension service
• Benefit is one-half times last 12 month’s salary
• Conversion privilege, without medical exam, is available
• Application for conversion required within 31 days of termination of employment

Paid Time Off

• All accumulated vacation time should be used prior to retirement date.
• One-half of unused sick leave days (up to $15,000) will be paid at retirement.
• Retirees may request to have sick leave payment deferred up to one year after retirement by completing Sick Leave Payment at Retirement Deferral Form.
• AL and PH days should be used prior to retirement.
• If circumstances prevent an employee from using all vacation time prior to retirement, a lump sum may be paid at retirement for unused vacation time with approval of your Vice President or Provost.

Retirement Planning

• University Human Resources sponsors Retirement Seminars for employees who expect to retire within six to twelve months. You can register online.
• Seminar information contributes to a smooth transition from employment to retirement.

 

 

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Last Updated: 04/28/2008