Retirement Letter for faculty, academic staff, and executive management

Important Information on your upcoming MSU Retirement

We would like to take this opportunity to offer you our sincere congratulations upon your retirement. 

Please review the Effect of Retirement on Benefits.  This document will provide an overview of how your benefits will be impacted, and any action needed, with your transition to retirement.  Additional information is provided below.

Health Care/Prescription Drug Plan, and Dental Plan

The university contribution toward your future retiree health care/prescription drug and dental premiums is based on your total Full Time Equivalent (FTE) service months at retirement and your Retirement Calculation Date, as described in the Retiree Benefits Policy.    

• You and your eligible dependents may be enrolled in an active employee MSU health care/prescription drug plan and/or a dental plan. Your active employee coverage will end with retirement, and you will need to enroll in retiree coverage.  Review the Retirees Open Enrollment Packet for information and costs on the plans available in retirement. More detailed information is available on the Humana health care plans.
• The health plan waiver ceases with retirement. If eligible, you will receive a check for a prorated amount based on the number of points accrued prior to retirement.
• You must enroll in retiree health care/prescription drug plan and/or dental plans. Failure to enroll will result in not having an MSU retiree health care/prescription drug plan.  If you do not enroll timely, you will not be able to enroll in health care/prescription drug coverage until the next Open Enrollment period or if you have a qualifying event.  You may enroll by completing the Retiree Enrollment/Change Form and returning it in advance of your retirement, by either emailing it to SolutionsCenter@hr.msu.edu, faxing it to 517-353-1869, mailing it to MSU Human Resources, 1407 S. Harrison Road, Suite 110, East Lansing, MI  48823, or dropping it off in the HR Drop Box in the HR building parking lot .  You may also enroll through the EBS Portal within 30 days after your retirement date.  Note: If you enroll using the Retiree Enrollment/Change Form, you can disregard the automated "Retirement from MSU" email you will receive after your retirement date (unless you need to make other benefit changes).
• If you are eligible for Medicare, you will need to enroll in Medicare up to three months prior to the effective date (see more Medicare details below).
• Surviving Spouse benefits may be available in the event of your death.

Medicare

• You and/or your covered dependents should apply for Medicare at least three months before reaching age 65 or once eligible, and must supply the Medicare Beneficiary Identifier (MBI) number for you and your covered dependents to MSU Human Resources at least 45 days BEFORE the effective date of Medicare (or as soon as you receive it). A copy of the Medicare card or a copy of the Medicare confirmation letter, in addition to the Retiree Enrollment/Change Form, will meet this requirement. You will also need to enroll in the MSU retiree Medicare health care/prescription drug plan BEFORE the effective date. 
• If you are aged 65 or older at the time of retirement and eligible for a Special Enrollment Period (SEP) with Medicare, contact the HR Solutions Center to sign the required form.
• All MSU retirees and covered dependents will be required to enroll in Medicare Part A (Hospital) and Part B (Medical) when eligible, and pay the applicable Medicare premium.
• Enrollment in Medicare Part D (Prescription Drug Coverage) is not necessary, as you will automatically be enrolled in prescription coverage when your MSU retiree Medicare health care plan becomes effective.

Retirement Income

• Retirement income and/or information regarding your distribution options should be obtained by contacting your investment vendor(s).

Social Security Benefits

• Social Security is a federal benefit that provides a foundation of income in retirement.
• You should contact the Social Security Administration to understand your eligibility and determine the appropriate time to begin receiving income.

Flexible Spending Accounts

• Your contributions into the Flexible Spending Accounts (FSA) cease with the end of the month of your employment termination date.  You have until April 30 of the following year that you cease employment to submit claims for reimbursement. If you participate in the Health FSA at the time of retirement, you may be eligible to continue under COBRA.  For more information, you can contact WageWorks, MSU’s FSA benefit administrator.

Health Savings Account

• Your contributions into the Health Savings Account (HSA) will cease effective with your retirement date. For more information, you can contact HealthEquity, MSU’s HSA benefit administrator.

Voluntary Insurances / Voluntary Benefits

• If you have the Optional Employee Paid Life Insurance Plan and are under the age of 70 when you retire, it will automatically continue. You would be billed for the appropriate premiums. You may elect to cancel your coverage within 30 days of retirement.
• Your Accidental Death and Dismemberment (AD&D) Insurance Plan will cease with your retirement.
• If you have elected to purchase optional benefits through MSU Benefits Plus, you should contact those vendor(s) directly to notify them of your retirement and establish direct billing. If you need assistance in contacting these vendors, contact MSU Benefits Plus Customer Care at 888-758-7575.
• For VSP vision insurance, you will receive a COBRA notice from VSP once MSU notifies them of your retirement. However, you could also enroll in VSP vision insurance as an official MSU retiree. Retirees can contact VSP at 800-400-4569 for further information on vision insurance in retirement.

University Insurances

• Long-Term Disability, Business Travel Accident and Basic Employer-Paid Life Insurance coverages cease with your retirement.
• If eligible, you may convert the Basic Employer-Paid Life Insurance to a private policy with Prudential within 31 days of your retirement. Contact Prudential’s Customer Service Center at 877-232-3555 for conversion information.

Course Fee Courtesy

• If currently eligible, your spouse and/or dependent children would continue to be eligible for one-half the cost of tuition at MSU as defined by the Course Fee Courtesy.

Emeritum Status

• Emeritum status may be awarded to faculty, academic staff and administrators who officially retire from MSU.  Emeritum status is not granted automatically, it is requested and reviewed through an approval process.  Please review the policy that governs Emeritum decisions, and the process to request Emeritum status. 

Additional Information

• Please retain your current MSU ID card for use in retirement. Retirees and/or spouses may obtain a new or replacement ID card at MSU ID Office in Room 170 International Center during normal business hours.
• As a retiree you will retain your MSU NetID email address (@msu.edu).
• As a retiree you will continue to have access to your benefits information using your MSU NetID and password through the EBS Portal.
• There is more retirement information and helpful hints on the MSU HR website outlining some of the discounts and benefits you may receive as an official university retiree.
• For Academic Year (AY) faculty and academic staff, your active employee benefits are paid during the AY calendar payroll for a period of July 1 – June 30. If you retire in late summer or early fall, you may receive a billing from Human Resources for unpaid benefits.  
• Important Note: Be sure that you carefully review Open Enrollment materials each fall. Those are the only communications you will receive regarding changes in coverage, premium sharing information, and other important information regarding your health and dental benefits.

If you need assistance making any changes or have questions about your benefits, contact the HR Solutions Center:

Human Resources Solutions Center
1407 S Harrison Rd, Ste 110
East Lansing MI 48823
517-353-4434
800-353-4434
SolutionsCenter@hr.msu.edu