Life Events - Retirement

Congratulations! As you make this exciting transition, here is important information about what to do before and when you leave, benefits, and finances:

• A checklist for what to do before, during, and after leaving Rutgers
• 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.
  2012 COBRA Rates
• 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 the 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 Chancellor.

Retirement Paid-Time Off Calculation Report Available

Employees or ARS administrators may request a projection of available paid time off to be earned and used prior to retirement, to help determine the last day of work prior to retirement. Please provide the following information in an email request to ARS@HR.RUTGERS.EDU:

• Prospective Retirees’ Full Employee Name and email address
• Department or Unit (also OrgID, if known)
• Projected Date of Retirement/Separation
• Any future planned scheduled time off prior to retirement
• ARS administrator name and email address

All requests should be made prior to the employee’s last day of attendance, and at least 1 calendar month prior to the retirement date. A summary report will be provided to the requestor within 7 days.

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.

 

 

To submit a comment or to report any problems with this site, please email us. For questions about University Human Resources programs and services, please email our Operations Team.

© 2010 Rutgers, The State University of New Jersey. All rights reserved.

Last Updated: 02/19/2012