Employee Benefits Upon Retirement

Purpose

This brochure contains information regarding your benefits when you retire. Please read this brochure carefully to assure a smooth transition between your active employment and retirement.

Wisconsin Retirement System (WRS)

You can receive a Wisconsin Retirement System (WRS) annuity for life beginning as early as age 55 (age 50 for protective employees).

You can apply for your annuity as early as 90 days before or as late as 90 days after your retirement date without loss of benefits. It is recommended that you contact the UWM Benefits Office at least 12 months before you retire for information on application procedures and annuity options. See the last page for address and phone number.

State Group Health Insurance

State Group Health Insurance coverage is paid two calendar months in advance. You can continue your health insurance coverage for life if you retire on an immediate annuity from the WRS (An immediate annuity is one that begins no later than 30 days from your termination date) or if you have at least 20 years of WRS creditable service at termination.

If your spouse is an active university/state employee in a position covered by the WRS, you may elect to transfer your health coverage to him/her. Contact the UWM Benefits Office for information and an application.

It is mandatory that you, or any of your insured dependents, enroll for Medicare benefits when first eligible. This requirement is deferred until your termination of employment (or your spouse's termination if she/he is the subscriber). The eligible person(s) must enroll for ALL portions of Medicare (hospital and medical). Failure to do so will result in the termination of state health insurance coverage. Contact the Department of Employe Trust Funds if you have questions about this requirement and the necessary notification forms.

When you or your insured dependent(s) become(s) eligible for Medicare after retirement, your health insurance will be changed to a plan which is integrated with the Medicare program. Your health coverage will remain substantially the same, but this integration will result in a significant reduction in your monthly premium rates.

Monthly health premium rates are the same for active employees and retirees (unless Medicare eligible). However, the portion of the premium you pay will be higher when you retire because the university no longer contributes towards the cost. Upon retirement, your monthly health premiums will be paid in one of the following ways:

1. From your accumulated sick leave account until it is exhausted. Refer to the Staff Benefits Handbook section titled, "Accumulated Sick Leave Conversion For Health Insurance" for more information. or,
2. If you have no accumulated sick leave or your sick leave account is exhausted, your premiums will be deducted directly from your monthly retirement annuity. or,
3. If your annuity is not large enough to cover the premium deductions, your insurance carrier will bill you directly for premiums.

If you have any questions about continuing your health insurance coverage contact the UWM Benefits Office.

Major Medical Insurance - Epic Life

Major Medical coverage is paid one calendar month in advance. If you wish to continue your coverage after retirement (at the same premium rate), contact Epic Life no later than 30 days from your termination date. See the last page of this brochure for the address and phone number.

Dental Insurance

Non-represented classified employees, faculty, and unclassified - DentaCare coverage is paid two calendar months in advance. You can continue coverage by making quarterly payments to Blue Cross-Blue Shield United of Wisconsin. Contact the UWM Benefits Office for the DentaCare continuation form.

For represented classified employees - Your DentaCare coverage is paid one calendar month in advance. Contact your local union office regarding continuation of coverage.

Income Continuation Insurance (ICI)

ICI coverage ceases on your date of termination.

State Group Life Insurance

Coverage is paid two calendar months in advance. Coverage can be continued upon retirement if your employment began prior to January 1, 1990 *AND you satisfy one of the following requirements or you began employment after January 1, 1990, had been covered by the State Group Life Insurance plan in 5 calendar years AND you satisfy one of the following requirements:

1. Receive an immediate WRS annuity or meet all of the requirements for receiving an immediate annuity except the filing of an application. (See definition of immediate annuity under State Group Health Insurance) or,
2. The sum of your years of WRS creditable service on January 1, 1990 plus your years of State Group Life Insurance coverage after 1989 equals 20 years. or,
3. The sum of your years of service on payroll with the same employer on January 1, 1990 plus your years of group life insurance coverage after 1989 equals 20 years. The service must be with the same employer that you were employed with immediately before retirement of employment.

*If you began employment after January 1, 1990, you must have been covered by the State Group Life insurance plan in 5 calendar years AND retire on an immediate WRS annuity (or be eligible for an immediate annuity) to continue coverage at retirement.

If you are eligible to continue your State Group Life Insurance coverage and you apply for an immediate WRS annuity, your coverage will continue automatically. If you are age 65 or older on your termination date, your coverage will continue automatically, regardless of when you apply for your WRS annuity. However, if you are under age 65 on your termination date and delay applying for your WRS annuity, you must file a continuation form no later than 31 days from the date your coverage terminates. If you do not file the continuation form within the 31-day period, your coverage will lapse and cannot be reinstated.

If you retire prior to age 65, your premiums will be deducted from your monthly retirement annuity. When you reach age 65, your Supplemental, Additional, and the accidental death and dismemberment coverage terminates. Your basic coverage will continue at age 65 for life at no cost to you, but at a reduced amount. Basic coverage will reduce to 75% at age 65 and to 50% at age 66. Basic coverage never reduces below 50%.

If you terminate employment due to a disability or ill health, you may be eligible for a premium waiver. Contact the UWM Benefits Office for details.

If you are not eligible to continue coverage, you can convert to an individual policy if you apply no later than 31 days from the date your coverage terminates. Coverage must have been in effect at least 6 months before retirement. Spouse and Dependent coverage ceases at retirement, but also can be converted to an individual policy, generally at a higher cost. For conversion information, contact Minnesota Mutual Life Insurance Company. See the last page of this brochure for the address and phone number.

University Insurance Association (UIA) Life Insurance

(Unclassified Faculty and Academic Staff Only)

UIA life insurance coverage will cease on September 19 of the plan year for which the annual premium was paid. For example, if you had the annual premium deduction taken from your November paycheck (October earnings), your coverage would end on September 19 of the following year. If you wish to continue your UIA life insurance coverage, you must pay the annual premium directly to National Guardian Life. Premiums are due no later than November 19 each year and no renewal notices are issued until after your initial premium is received. Contact the UWM Benefits Office for the UIA Life Insurance Continuation form and instructions for continuing coverage.

Individual and Family Group Life Insurance

Coverage is paid one calendar month in advance. If you are under age 70, you can convert to an individual policy (generally at a higher cost) by applying no later than 31 days from the date your coverage terminates. Spouse and Dependent coverage can also be converted to individual policies. Contact National Guardian Life to arrange coverage. See the last page of this brochure for the address and phone number.

UW Employee's Inc. Group Life Insurance (Mutual Service Life)

Coverage is paid one calendar month in advance. Coverage can be converted to an individual policy (generally at a higher cost) if the policy has been in force for 12 consecutive months prior to termination. You must exercise this option no later than 31 days from the date your coverage terminates. Contact Beauford Sherman. See the last page of this brochure for the address and phone number.

Accidental Death and Dismemberment (AD&D) Insurance

Coverage is paid one calendar month in advance. Coverage can be continued at current premium rates but coverage will reduce beginning at age 70. Refer to the Accidental Death and Dismemberment brochure for policy limitations after retirement. You will be required to pre-pay premiums for coverage from your termination date to October 31 of the year you retire. For coverage after November 1, the Hausmann Hemb & Associates Insurance Company will bill you annually for the premium, plus a nominal administration fee. To request a Continuation Notice for AD&D, or for additional information, contact the UWM Benefits Office.

Employee Reimbursement Accounts

You have the option of continuing participation in the ERA program for the remainder of the plan year in which you retire. To continue participation you can:

• have multiple deductions taken from your last payroll check on a pre-tax basis or,
• make after-tax payments by completing an ERA Continuation Form.

For more information, contact the UWM Benefits Office.

Tax-Sheltered Annuities (TSA)

For information regarding your options upon retirement, contact the TSA vendor with which you have invested your tax-sheltered contributions.

Deferred Compensation Plan

Contact the Wisconsin Deferred Compensation Program for a form to elect a benefit commencement date for your deferred compensation funds. This form must be completed within 60 days of your termination date. See the last page of this brochure for the address and phone number of the Wisconsin Deferred Compensation Program.

Every effort has been made to ensure that the information in this brochure is accurate. If the information should conflict with State Statutes, statutes must be followed.

The University of Wisconsin does not discriminate on the basis of disability in the provision of programs, services or employment. If you need this printed material interpreted or in a different form, or if you need assistance in using this service, please contact us at (414)229-4925.

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Last modified: August 14, 2007