3730 - Retirement Privileges and Programs

CONTENTS:

A. Introduction
B. State and Federal Retirement Plans
C. University of Idaho Privileges and Programs
D. Disability Retirement
E. Surviving Spouse and Children

A. INTRODUCTION. This policy describes the retirement privileges and programs available to eligible University of Idaho employees upon retirement. The University of Idaho through its Board of Regents reserves the right to change, amend or discontinue any part of the programs described within or any one or all of these programs in part or entirely at any time, to the extent allowed by law. This policy should not in any way be construed as a guarantee of continued employment.

A-1. State and Federal Retirement Plans. These include state and federal retirement plans such as the Public Employees Retirement System of Idaho (PERSI), the Idaho Optional Retirement Plan (IORP), the Civil Service Retirement System and the Federal Employees Retirement System. Eligibility criteria and benefits are determined under each plan and can be found in the respective plan documents, which are subject to change. In the event of a conflict between this policy and the plan documents, the plan documents control in all respects.

A-2. University of Idaho Retirement Privileges and Programs. These include faculty emeritus and honored staff retiree privileges, eligibility to participate in retiree health programs of the University of Idaho (Retiree Health Program).

a. Emeritus Faculty and Honored Staff Retiree Privileges. This policy sets forth the eligibility criteria for, and benefits of, honored staff retiree privileges. For faculty emeritus privileges, see FSH 1565 E. Emeritus or honored staff retiree status does not automatically confer eligibility for the Retiree Health Program.

b. Retiree Health Program. This policy sets forth eligibility criteria for the Retiree Health Program. Information regarding specific benefits is contained in the applicable plan documents and may change. In the event of a conflict between the information in the Plan documents and those presented in this policy, the plan documents will control.

B. STATE AND FEDERAL RETIREMENT PLANS. University of Idaho employees participate in the following plans, depending on eligibility. Employee contributions are made to PERSI, IORP, the Civil Service Retirement System and the Federal Employees Retirement System through payroll deduction. The University of Idaho contributes a portion of salary and the employee contributes a portion of salary. These amounts vary from year to year. Current contribution rates are available at the Office of Human Resources' benefits website under the "Retirement Plans" menu option. Contributions are suspended while an employee is on leave without pay, except that IORP contributions may be continued by the plan during a qualified disability if a waiver is requested and approved.

B-1. Public Employee Retirement System of Idaho (PERSI). PERSI is a defined benefit retirement plan. Eligibility requirements and benefits are governed by the PERSI plan document, which is available at the PERSI website. Employees also may contact the plan administrator listed below. The contact information can be found on the Benefits website:

PERSI

Public Employee Retirement System of Idaho

B-2. Idaho Optional Retirement Plan (IORP).IORP is a defined contribution retirement plan. There are currently two plan administrator choices for employees: The contracts for plan administrators are managed through the Board of Regents. For information on the plan offerings visit the benefit webpage. Eligible employees must enroll and select a Plan administrator and self-directed investments when they become eligible. In the event that a Plan administrator and/or investment options are not elected by the employee before contributions begin, default elections and/or investments will be selected. Employee and employer contributions will be directed to the default Plan administrator and deposited within default investment choices, unless or until these have been changed by the employee. Eligibility requirements and benefits are governed by the IORP plan document. For more information, contact the plan administrator. The contact information for each can be found on the benefits website.

B-3. Federal Retirement Plans. Certain grandfathered University of Idaho employees are eligible for benefits governed by the Federal Employees Retirement System. For complete information, go to the U.S. Office of Personnel Management (OPM) website. For assistance, contact Benefit Services at the University of Idaho. 

C. UNIVERSITY OF IDAHO RETIREMENT PRIVILEGES AND PROGRAMS.

C-1. Definitions.

a. Retirement. An employee may bring about the termination of his or her employment by resigning (see 3930 A and 3940). Resignation is considered to be "retirement" if the employee has qualified for certain benefits based on age and length of qualified service (defined below). The effective date of retirement shall coincide with the last work day in a calendar month or last work day of a fiscal year. The last day of employment is generally the last day worked (see FSH 3710 B-9). A discussion with benefit services regarding the anticipated specific date of retirement will help facilitate the transition of appropriate benefits and privileges in a seamless manner.

b. Retiree. A retiree is a former employee who has terminated his or her employment through retirement.

c. Qualified Service. For purposes of determining retiree health program eligibility, qualified service includes service while employed at the University of Idaho in a position eligible for University of Idaho health benefits, excluding those who are only eligible under the Patient Protection and Affordable Care Act (PPACA). This PPACA group is not eligible under the University's criteria for University subsidized health benefits. Service to the University of Idaho will be counted if the employee has been on paid status at half time or greater. Employees on regular academic year appointments receive credit for twelve (12) months of service, provided all other requirements of qualified service are met. Service while employed on a temporary hourly (TH) basis will not be recognized as qualified service. Qualified service performed prior to a break in service is permanently forfeited, except as provided in C-1-e.

d. Active Health Plan Enrollment. For purposes of determining eligibility for the Retiree Health Program, years of active health Plan enrollment will be counted for each fiscal Plan year in which the employee has been enrolled as a primary subscriber for dental, life or disability benefits, or each year of employment in a position eligible for University of Idaho health benefits, excluding those who are only eligible under the Patient Protection and Affordable Care Act (PPACA). This PPACA group is not eligible under the University 's criteria for University subsidized health benefits.

e. Break in Service. A break in service occurs when there is a separation from qualified service for one day or more. For purposes of this policy, after a break in service an employee forfeits all prior qualified service, unless the employee had at least five (5) years of continuous qualified service prior to the break in service. A break in service does not include the following: (1) periods of any category of approved paid or unpaid leave of absence; or (2) periods during which the employee is eligible for and has opted to remain on the lay-off roster. Information on the lay-off process is found on the HR webpage.

f. Part-time Employees. Qualified part-time employees who are employed in a health benefits eligible position are eligible for the Retiree Health Program upon retirement excluding those who are only eligible under the Patient Protection and Affordable Care Act (PPACA). This PPACA group is not eligible under the University's criteria for University subsidized health benefits. Service credit for part-time employees will be earned based on a prorated percentage of their full-time status. An employee who temporarily reduces his or her hours of work and remains employed in a health benefits eligible position may earn up to two (2) years of full-time service credit if hours have been temporarily reduced to accommodate transitioning into retirement or to accommodate a family or personal matter. In either case, the employee must obtain written approval in advance from his or her supervisor and Benefit Services.

C-2. Honored Staff Retiree Privileges

a. Eligibility Requirements. Upon retirement, each member of the classified or exempt staff whose service to the University of Idaho meets one of the following criteria, and whose employment was not terminated for cause, is designated an honored staff retiree:

1. Completion of 30 years of qualified service; or

2. Completion of 15 years of qualified service and attainment of age 64; or

3. Attainment of age 55 and completion of a number of years of qualified service, such that the sum of the years of age and the years of service is 80.

b. Privileges. Each member of the classified or exempt staff meeting the above eligibility requirements is awarded a presidential commendation for long and faithful service, and his or her name is entered on the list of honored staff retirees especially worthy of continued recognition as members of the University of Idaho community. Privileges available to honored staff retirees are as follows:

1. Membership in the University of Idaho Retirees Association (UIRA);

2. Education privileges (see FSH 3760);

3. One, free non-transferable gold parking permit each year;

4. Listing in the campus directory;

5. Honored staff retirees who elect to maintain an active computing account will retain access to services provided by Information Technology Services (ITS) including electronic communications (e.g. e-mail, instant messaging, etc.), technical support, and offered software;

6. Eligibility to receive mailings (upon request), such as the University of Idaho Register and similar publications; and

7. Inclusion in appropriate university, college, and departmental functions.

C-3. Privileges for Emeritus Faculty Retirees. Privileges for emeritus faculty retirees are enumerated in FSH 1565 E-4.

C-4. Retiree Health Program Eligibility. The Retiree Health Program is divided into four tiers of eligibility requirements and includes varying levels of benefits. Benefits offered in each tier are subject to change. Enrollment in the UI medical plan is required at the time of retirement to transition to the retiree medical plan. As part of open enrollment Benefit Services shall inform employees they must be enrolled in a UI health plan at the time of retirement in order to be eligible for the retiree health plan.

a. Tier I -- Eligibility Criteria. To qualify for Tier I, an employee must be retired and covered under the Retiree Health Program pursuant to a prior version of this policy, or meet the following criteria on or before September 30, 2007, but may retire later:

1. Hired on or before January 1, 2002; and

2. Has been enrolled, or eligible to enroll, as the primary subscriber in the active health plan for at least (5) five years prior to retirement; and

3. Meets one of the following three criteria:

a. Has completed at least 30 years of qualified service, regardless of age; or

b. The sum of the number of years of age and qualified service is equal to or greater than 80, to include a minimum age of 55 years; or

c. Has completed at least 15 years of qualified service and attained a minimum age of at least 64 years.

b. Tier II -- Eligibility Criteria. To qualify for Tier II, an employee must meet the following criteria on or before June 30, 2011, but may retire later:

1. Hired on or before January 1, 2002; and

2. Has been enrolled, or eligible to enroll, as the primary subscriber in the active health plan for at least (15) fifteen years prior to retirement; and

3. Meets one of the following criteria:

a. Has completed at least 30 years of qualified service, regardless of age; or;

b. The sum of the number of years of age, subject to a minimum age of 55 years; plus qualified service, subject to a minimum of 15 years, is equal to or greater than 80.

c. Tier III -- Eligibility Criteria. To qualify for Tier III, an employee must meet the following criteria on or after July 1, 2011, but may retire later:

1. Hired on or before January 1, 2002; and

2. Has been enrolled, or eligible to enroll, as the primary subscriber in the active health plan for at least (20) twenty years prior to retirement; and (rev. 7-15)

3. Meets one of the following criteria:

a. Has completed at least 30 years of qualified service, regardless of age; or

b. Has completed at least 20 years of qualified service, and the sum of the number of years of age, subject to a minimum age of 55 years, plus years of qualified service is equal to or greater than 90.

d. Tier IV -- Eligibility Criteria. To qualify for Tier IV, an employee must meet the following criteria:

1. Has been enrolled, or eligible to enroll, as the primary subscriber in the active health plan for at least (10) ten years prior to retirement; and

2. Has completed at least 10 years of qualified service; and

3. Is at least 55 years of age; and

4. The employee's current hire date is prior to July 1, 2020.

e. Ineligible Employees. Employees with a current hire date on or after July 2, 2020, are outside of the eligibility tiers and are not eligible for retiree health benefits.

C-5. Continued Eligibility for the Retiree Health Program. Once a Retiree has qualified for the University of Idaho Retiree Health Program, the following conditions must be met for continued eligibility.

a. Retirees and their dependents must enroll in the Retiree Health Program when first eligible or they will lose eligibility. Upon eligibility for the Program, retirees will be required to make a one-time, irrevocable election of available plan options. Current retirees made this election no later than July 1, 2007. Retirees, who are enrolled in the Program; but fail to make a election will be automatically and irrevocably enrolled in the selected default Plan. Plan options and default plans may vary from year to year. Information regarding plan options and which plans will be used for default is available from Benefit Services.

b. For eligible retirees, coverage is effective on the first of the month following the effective date of retirement. In order to avoid a gap in coverage between the last day of work and the first day of coverage under the Retiree Health Program, coverage for eligible retirees under the active health benefit program will continue until coverage under Retiree Health Program begins.

c. Covered dependents are first eligible on the same date the retiree becomes eligible or on the date they later become a dependent.

d. All participants who qualify for post-Medicare coverage, including covered dependents, in any tier of the Retiree Health Program must elect Medicare Parts A and B as their primary payer of benefits when they first become eligible, except to the extent that federal law requires the Retiree Health Program to be primary. All participants must comply with rules set forth in the Plan document for each Plan and/or tier of eligibility with respect to Medicare Prescription Drug Coverage (Part D). See C-7 for additional information on post-Medicare coverage.

e. All participants, including covered dependents, in any tier are subject to coordination of benefits rules as set forth in the applicable plan documents.

f. If coverage under the Retiree Health Program is ended for any reason, there is no opportunity to rejoin the Program at a later date. The only exception is for a Retiree who returns to a benefit eligible position at the University of Idaho following his or her participation in the Retiree Health Program. In this instance, Retiree Health Program coverage will be temporarily suspended. After active employment ends, the Retiree will have the right of reinstatement in the same tier and Plan election(s) that applied on the original date of retirement.

C-6. Benefits. Programs offered vary from tier to tier and benefits vary within the Plans available within each tier, as set forth in the applicable plan document(s). These are subject to change without notice. See benefits webpage for governing plan documents.

C-7. Contributions. Effective July 1, 2007, all retirees will share in the cost of coverage through a monthly contribution, unless a Plan option which requires no monthly contribution is elected (if applicable).

The University will offer at least one medical Plan option to Tier I retirees which does not require retiree cost sharing through monthly contributions. It is the intention of the University to offer at least one medical Plan option that is less costly, or that for tiers two and three may have no retiree cost sharing. The Plan with no cost or less retiree monthly cost sharing will have less generous benefits such as higher deductibles and higher out of pocket expenses.

a. Tier I Retirees: Contribution Rate Increase and Post-Medicare Coverage.

1. Contribution rates charged to Tier I retirees shall not increase in any one year over the previous year by more than 10%.

2. Tier I retirees continue to be eligible for post-Medicare coverage as long as they stay eligible for participation in the Plan.

b. Tier II and Tier III Retirees - Post-Medicare Coverage.

1. Tier II and Tier III employees who are eligible to retire prior to January 1, 2021, continue to be eligible for post-Medicare coverage as long as they stay eligible for participation in the Plan.

2. Tier II and Tier III employees who are not eligible to retire prior to January 1, 2021, are eligible for post-Medicare coverage only through December 31, 2023, and will pay contribution rates for post-Medicare coverage per the following schedule: 25% of the cost for post-Medicare coverage in calendar year 2021, 50% of the cost for post-Medicare coverage in calendar year 2022, and 75% of the cost for post-Medicare coverage in calendar year 2023. Thereafter, post-Medicare coverage ceases.

c. Tier IV Retirees: Contributions and Post-Medicare Coverage.

1. Tier IV retirees are responsible for 100 percent of the cost of retiree coverage.

2. Tier IV employees who are retired or eligible to retire prior to January 1, 2021, continue to be eligible for post-Medicare coverage at full cost as long as they stay eligible for participation in the Plan.

3. Tier IV employees who are not eligible to retire prior to January 1, 2021, are eligible for post-Medicare coverage at full cost only through December 31, 2023.

d. Sick Leave Conversion for Tier IV. Tier IV is allowed sick leave conversion equal to one half of the unused sick leave hours available at the time of retirement accrued since July 1, 1976, not to exceed a benefit of 600 hours, which may be used to pay for the cost of Tier IV retiree health coverage.

EXAMPLE #1: At the time of retirement, Retiree has accrued 1000 hours of sick leave. Retiree may convert 500 hours to pay for retiree health coverage.

EXAMPLE #2: At the time of retirement, Retiree has accrued 1400 hours of sick leave. Retiree may convert 600 hours to pay for retiree health coverage.

Only Retirees in Tier IV who had a sick leave balance eligible for sick leave conversion as described above are eligible for sick leave conversion. Sick leave conversion is limited to use for the cost of UI retiree medical coverage for the retiree only.

e. Dependents: Retirees in all tiers will be responsible for payment of one hundred percent of the cost of coverage for all covered dependents.

f. Payment: The cost (if applicable) of retiree and/or dependent coverage must be paid in a timely manner. All plans of coverage will be terminated if the required payment for all plans of coverage is not received within 30 days of the date it is due.

D. Surviving Spouse and Children.

D-1. Faculty Emeritus or Honored Staff Retiree Privileges. There is no transfer of Emeritus or Honored Staff privileges as described above or in FSH 1565 E-4.

D-2. Retiree Health Program. (ed. 7-20) A covered dependent spouse or child may continue under the Retiree Health Program under the following terms and conditions:

a. Following the death of the retiree, a covered dependent spouse or child may continue coverage under the Retiree Health Program, provided all other Program and plan eligibility requirements are met.

b. Effective July 1, 2007, a covered dependent spouse of a deceased retiree may remain enrolled in the Retiree Health Program even if he or she later remarries, provided all other Program and plan requirements are met.

c. A new spouse of a former covered dependent spouse, or any other newly acquired dependent, may not be added to the Retiree Health Program. However, a dependent child of the retiree who is born after the death of the retiree may be added within 30 days of birth.

d. The covered dependent spouse or eldest covered dependent child will become the new 'primary subscriber' in the same Plan election and tier of coverage that applied prior to the retiree's death, provided all other Program and plan eligibility requirements continue to be met. However, regardless of which tier applies, the new primary subscriber will be responsible for the entire cost of coverage based on the full subscriber rate for himself or herself and for all covered dependents, based on the subscriber and dependent rates in effect at that time.

e. If the covered dependent spouse or eldest child does not have the same Medicare eligibility as the retiree had at the time of death, the surviving covered dependent(s) will be transferred to the retiree plan that is consistent with the new primary subscriber's own Medicare eligibility.

f. If a covered dependent spouse or child becomes eligible for coverage under another employer's health plan as either the primary subscriber or as a dependent, eligibility for coverage under the Retiree Health Program will end. Waiving coverage under another employer's plan also will result in a loss of eligibility for the Retiree Health Program.

Version History

Amended July 2021. Editorial changes.

Amended July 2020. Updates were made to change the retiree health benefits as recommended by the OPEB Advisory Group.

Amended July 2019. Revised B-3, C-1 a, e, C-4, C-5 b, C-6, C-7 b, and D. Editorial changes to B-2.

Amended July 2015. Updates were needed to clarify eligibility in retirement programs due to changes in enrollment requirements. Other changes were needed to update contact information and provide further clarity.

Amended July 2009. Editorial changes to C-3 and D-1.

Amended January 2008. Editorial changes to C-3.

Amended July 2007. Changes were made to the eligibility criteria and benefits available.

Amended January 2007. Editorial changes.

Amended July 1994. Revised to add the optional retirement plan.

Adopted 1979.