If you are enrolled in the following plans and are eligible for benefits as U-M retiree, coverage for you and your eligible dependents enrolled at the time of your retirement will automatically continue as long as you pay any applicable premiums: health plan (including prescription drug coverage), dental plan, vision plan, legal services plan, and life insurance plan. Your participation in the business travel accident insurance, long-term disability and dependent life insurance plans ends upon retirement. If you participate in a health care flexible spending account, expenses incurred prior to the date of retirement are eligible to be reimbursed, unless coverage is continued under COBRA. If you participate in a dependent care flexible spending account, expenses are reimbursed up to the balance in the account at the time of retirement for expenses incurred through the end of the plan year of participation.
This 22-minute video gives an overview of what you may want to consider as you plan for health care in retirement.
When you retire, your U-M employee benefits end on the first of the month following your retirement date. Retiree benefits for which you are eligible start on the 1st of the month following your retirement date. Exception: if you retire on the 1st of the month, your employee benefits end and your retiree benefit start on your retirement date.
Retirees participate in annual Open Enrollment to make benefits changes, with changes effective January 1. Plan costs may vary each year.
Unused accrual of vacation or paid time off (PTO) will be paid to you shortly after retirement. Once you have submitted your final time sheet and your department approves it, a check will be issued to you typically within a few weeks after you have retired. This payment is not eligible for contributions for the Basic Retirement Plan although individuals subject to a collective bargaining agreement should refer to the terms of their contract.
Only eligible dependents covered on your benefits at the time you retire may continue to be covered during retirement. Covered dependent children may remain on your benefits up to the end of the month in which they turn 26. No one can be added to your U-M benefits after you retire.
U-M provides Medicare Advantage plans to Medicare-eligible retirees and their Medicare-eligible dependents. Therefore, enrollment in Medicare parts A and B are required to continue U-M health plans.
For offline reference, you may download and print this comprehensive overview of benefits for eligible U-M retirees.
Medicare Advantage becomes your primary insurance when you are both age 65 and retired (or earlier, if you become eligible due to disability). It’s important to enroll at the right time to avoid paying higher monthly premiums.
If you come back to work after retiring from U-M, including as a temp, you may become eligible for health coverage under the Employer Shared Responsibility (ESR) provision of the Affordable Care Act. You may not maintain your retiree health plan during any period of time that you are eligible for health coverage under ESR as an employee.
As a faculty member, staff member or retiree of the University of Michigan, you are eligible to utilize services provided by the Faculty and Staff Counseling and Consultation Office (FASCCO). FASCCO professional counselors are available to help with issues of daily living or personal concerns you may be experiencing such as: marital/partner issues, life transitions, family concerns, grieving the loss of a loved one, depression or anxiety, alcohol or drug misuse, or caregiver concerns.
The U-M retirement savings plans provide an important source of income in retirement in addition to Social Security and your personal savings. U-M does not have a pension plan.
Cash withdrawals are generally not available from the Basic Retirement Plan if you are rehired in a regular (non-temporary) position. Limitations also apply to withdrawals from the 403(b) SRA and 457(b).
You can still use some U-M computing services as a university retiree. Your access to cloud storage, U-M Dropbox, U-M Google Services, videoconferencing, computers and software, LinkedIn Learning, and other general services will vary.
Submit your questions to the SSC Contact Center. You can also call the SSC at 5-2000 from the Ann Arbor campus, (734) 615-2000 locally, or (866) 647-7657 toll free, Monday through Friday from 8 a.m. to 1 p.m. and 2 p.m. to 5 p.m..
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend, or terminate them. Every effort has been made to ensure the accuracy of the benefits information in this site. However, if any provision on the benefits plans is unclear or ambiguous, the Benefits Office reserves the right to interpret the plan and resolve the problem. If any inconsistency exists between this site and the written plans or contracts, the actual provisions of each benefit plan will govern.
