55.39 - Retiree Medical and Life Insurance
July 21, 2009 (formerly APM 50.39)
A. General. A retiree may qualify for certain UI retiree medical and life insurance benefits by meeting the retirement criteria stated in FSH 3730. UI retirement benefits are subject to Regents’ approval and may be altered or discontinued at any time. [See FSH 3730]
A-1. Life Insurance. The university life insurance benefit is calculated on the qualified retiree’s annual salary at the time of retirement. Up to age 65, life insurance is equal to the annual salary at the time of retirement. The benefit drops to 75% of annual salary at the time of retirement between ages 65-69, and to 50% at age 70 and over. Insurance coverage for a retiree's spouse is $1000. See Summary Plan Description for Group Life at Benefits Website for more information about life insurance benefits.
A-2. Health Benefits. Retirees who qualify may continue their medical and dental coverage for themselves as well as for their qualified dependents’ after retirement. Health coverage for qualified retirees is provided in a Retiree Medical Plan that is similar to the active Traditional Plan. However, once the retiree qualifies for Medicare Parts A and B, these must be accepted when first eligible. Dental benefits cease upon Medicare eligibility. In the event that Medicare is not accepted when the member first becomes eligible, coverage under the UI Retiree Health Plan will cease and rights of participation in the Plan will forever be forfeited. Medicare becomes primary under the retiree program and benefits with Medicare are coordinated on a carved-out basis. See Summary Plan Description for Retiree Medical Benefits at Benefits Website for more information.
i) There is no open enrollment period for retirees. Adding or dropping dependents requires a life style change.
B. Process. A prospective retiree must meet with Benefit Services prior to retirement to determine eligibility for retiree medical and life insurance, as well as other benefits.
B-1. Confirm life insurance beneficiary data. At time of retirement, the prospective retiree should review his/her beneficiary data and update the data if necessary. These documents are filed in Benefit Services and may be reviewed at any time. Current beneficiary addresses are very important, as is notifying your beneficiary of the available benefit.
B-2. Payments and Quarterly Statements for retiree medical plan for either a qualified self-pay retiree and or dependents are coordinated through the UI Cashier’s Office. Failure to pay premiums may result in cancellation of coverage and may affect eligibility for continued participation.