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Retirement Information for UT Austin Faculty and StaffThis publication is designed to provide employees and retirees with a source of information concerning retirement benefits. All of the information has been reviewed for accuracy; however, policies and laws change. Therefore, should any part of this information conflict with any policy or law, the actual policy or law shall govern.
Retiree InsuranceAs a retiree, UT and the State of Texas will provide 100% of your premium for the Basic Coverage. You will receive up to 50% of the premium for your dependent's medical coverage and are responsible for paying the premiums for optional coverage. Basic Coverage:
Optional Coverage:
Retirees are not eligible for:
EligibilityCurrent eligibility is based on legislation passed by the 78th Legislative Session, and an informal opinion letter issued by the Office of the Attorney General. Service credit is creditable service time as defined by the Teacher Retirement System (TRS), Optional Retirement Program (ORP), Employees Retirement System (ERS), or an acceptable combination thereof. Category A: Benefits eligible individuals employed on August 31, 2003:
Former employees who met these criteria as of August 31, 2003 may also be eligible for retiree insurance coverage. Category B: Individuals employed on or after September 1, 2003:
Retiree Insurance EnrollmentYou must enroll in the retiree insurance within 31 days of your retirement date. Your employee insurance does not automatically continue when you retire. A Retiree Insurance Enrollment/Change Application should be submitted to the Human Resource Service Center (HRSC) within your 31 day enrollment period. If the form is not submitted within your 31 day enrollment period, your next opportunity to enroll is during Annual Enrollment, and Evidence of Insurability may be required. Employees retiring from TRS or ERS must also provide documentation of their retirement, such as a copy of the TRS 30 (Application for Service Retirement) form for TRS retirees. Employees retiring from ORP must submit an ORP Declaration of Retirement form. The Retiree Insurance Enrollment/Change Application and ORP Declaration of Retirement forms are available from HR Document Express. Unused Annual LeaveYou can defer your unused annual leave payment into retirement savings if you have a UTSaver DCP 457(b) account in place before you leave UT employment. You can defer any portion of your unused annual leave payment up to the annual DCP contribution limit. Your estimated DCP contribution limit is available at https://utdirect.utexas.edu/pnben/index.WBX. You must elect this option before you leave UT employment by submitting a Purchase Agreement for Annual Leave Deferral to HRSC. The form is available at http://www.utretirement.utsystem.edu/Forms.html. Federal income tax will not be withheld from the amount deferred, but deductions for Social Security and Medicare will be withheld. More information regarding this option is available on the UT System Retirement Web site at http://www.utretirement.utsystem.edu/UTSaver457b_defer.html. Annual EnrollmentRetirees may make changes to their insurance each Annual Enrollment period, which is typically the month of July. HRSC will send information and instructions by mail or by e-mail if an e-mail address is on record with UT Austin. It is important to review this information each year to be aware of any changes that may occur with the insurance plans and to determine if making a change is appropriate. Retiree Insurance BillingA billing statement will be mailed on a quarterly basis throughout the plan year and will include any balance that may be due for optional insurances. Payment should be sent to: The University of Texas at Austin You also have the option to set up automatic payments directly from your bank account by enrolling in AutoPay. To enroll, you will need to submit an Automatic Payment Request Authorization Form to Payroll Services. The form is available on the Payroll Services Web site at http://www.utexas.edu/payroll/forms.html. Please do not submit this form with your payment. Questions regarding billing or payment should be directed to Payroll Services at 512-471-5271. Surviving DependentsDependents that are covered by medical, dental or vision insurance at the time of a retiree's death may continue UT System insurance as surviving dependents. When HRSC is notified of a retiree's death, we will send eligible surviving dependents information about continuing their UT System insurance. Surviving dependents are not eligible for premium sharing and are responsible for paying the entire cost of the insurance. They will be billed by UT Austin for their premiums. They may continue UT System insurance until they no longer meet the definition of a dependent, become eligible for similar benefits elsewhere, or do not pay the premiums. Group Term Life InsuranceIf you have more than $50,000 of voluntary term life insurance as an employee and would like to retain more than $50,000 of voluntary term life insurance as a retiree, it is possible to convert the additional coverage to an individual policy. Dependents may also convert coverage to an individual policy since their coverage ends with your retirement. Please contact HRSC within 31 calendar days of your retirement date to request a Fort Dearborn Life Application to Convert Group Term Life Insurance to an individual whole life insurance policy. The application must be sent to Fort Dearborn Life and postmarked no later than the 31st day after your retirement date. Long Term Disability Before RetirementPre-retirement is the recommended time to review long term disability to determine if the insurance is still beneficial. Long term disability is designed to provide 60% of an employee's monthly salary if an employee becomes disabled and cannot work. Consider the current cost of coverage and, using the table below, determine the maximum years of coverage you would receive.
Long Term CareEmployees who enrolled in long term care insurance may continue coverage after retirement. Instead of paying premiums through payroll deduction, the insurance company, CNA, will send bills directly to your home. Please contact CNA at 888-825-0353 to set up billing after retirement; failure to do so may result in cancellation of the policy. Retirees who did not enroll in Long Term Care while employed still have the option to enroll at anytime by contacting CNA; however, Evidence of Insurability is required and must be approved by CNA in order to receive the insurance. Medicare EnrollmentIf you are age 65 or older at the time of your retirement, and have not already done so, you have a 7-month window in which to contact the Social Security Administration (SSA) to enroll for Medicare. The enrollment window begins three months prior to your retirement and ends four months after your retirement. You will not be required to pay a penalty to SSA for late enrollment in Medicare Part B if you enroll during this 7-month time period. You will need to request forms CMS-40B and CMS-L564 from SSA. HRSC will complete CMS-L564 for you if necessary. If you turn age 65 after your retirement, you also have a 7-month window in which to enroll for Medicare. This enrollment window begins three months before your 65th birthday and ends four months after. If you don't enroll during the enrollment window, you will have to wait until the subsequent "general enrollment period," held annually from January 1 through March 31 for coverage starting the following July 1. Medicare Coordination of BenefitsUT System urges all retired employees and dependents to enroll in Medicare Part B when they become eligible at age 65 or earlier if they are eligible due to a disability. You must have Medicare Part B to receive the maximum benefits available from UT Select. Medicare becomes your primary insurance and pays your medical claims first. UT Select pays second. If you choose a doctor who accepts Medicare assignment, you will not be responsible for any difference between the billed charge and the Medicare allowed amount. As a retiree, if you or your Medicare eligible dependents have declined Medicare Part B, you will be required to pay the portion that Medicare Part B would have paid as primary insurer for Part B-covered items for yourself and any Medicare eligible dependents. If you or your dependents are enrolled in Medicare and your doctor accepts Medicare assignment:
If your doctor does not accept Medicare assignment:
Return-to-Work RetireesAn individual who retires from UT System through the Teacher Retirement System (TRS) or Optional Retirement Program (ORP) and returns to employment at UT Austin continues to receive benefits as a retiree and is never again eligible to enroll in benefits as an active employee. TRS and ORP retirees are not eligible to contribute to the TRS or ORP retirement programs due to their retired status, but are eligible to contribute to the UTSaver Supplemental Retirement Programs as a retiree. TRS RetireesTRS retirees who plan to work in Texas public education after retirement should carefully review all requirements that apply to such work so that they do not revoke their retirement, or lose monthly annuity payments for work that exceeds the allowable amount. Review the TRS Employment After Retirement publication (www.trs.state.tx.us) to understand these requirements. Please contact TRS if you are considering returning to employment in Texas public education after retirement and are unsure whether your employment will affect your retirement or your monthly annuity payment. ORP RetireesORP retirees may return-to-work at any time with no restrictions placed on their employment. Medicare Coordination of BenefitsIf you are age 65 or older and appointed in a position that is at least 20 hours per week and four and one-half months or longer, the UT System medical insurance will be your primary insurance and Medicare will be your secondary insurance during that time period. The following table illustrates this for faculty positions by semester.
TRS Retirement (for TRS members only)Contact Teacher Retirement System (TRS) six months prior to retirement to allow sufficient time to complete and submit all required forms. Members will need to:
Form TRS 18 must be submitted to TRS in order to receive a retirement packet, which will include any required forms and an instruction booklet. ORP Retirement (for ORP participants only)Contact your ORP provider or financial advisor at least three months before retirement to review:
You must also contact HRSC close to your retirement date to request that a Vesting/Termination Status Form be sent to your ORP provider(s) after your retirement date. UTSaver Program ParticipantsParticipants of the UTSaver TSA 403(b) and the UTSaver 457(b) programs should contact their provider or financial advisor at least three months prior to retirement to review:
If you will be returning to employment after your retirement and do not wish to continue contributing to your UTSaver account post-retirement, please cancel your UTSaver participation at the time of your retirement. You can do so online via the UTRetirement Manager system or by submitting a Purchase/Change Agreement form, available from the UT System Retirement site, to HRSC. Social Security BenefitsContact the Social Security Administration (SSA) about your Social Security pension benefits, which begin as early as age 62. If you plan to retire between the ages of 62 and 65, notify the SSA as soon as your retirement date is set. If you are going to retire after age 65, contact the SSA at least six months before your 65th birthday to register for Social Security benefits. You will need:
Privileges of UT Austin Retirees
Contact Information
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