Retirement
Article XII.D.6

Eligibility
To retire from WSU, you must have attained age 55 and have 10 years of service with the university or 5 years of university contribution in the retirement program. “Years of service” means the continuous number of years a faculty or staff member has worked at WSU in a benefits-eligible job group. Time as a temporary employee is not included.

Retiree Benefits
The following benefits are provided to retirees:

            • Group rate medical, dental and vision insurance,
            • $2,500 in life insurance coverage
            • Retiree OneCard giving access to the library,             Matthaei facilities, and discounts
            • Discounted rates on Fitness Center membership,             • Free parking at all structures except #6,
            • Continued email access,
            • Continuation of voluntary benefits for home,             automobile, and/or long-term care                                     insurance,
            • 75% reduction in the regular tuition rate for those             60 and older

For further information on retirement benefits go to: 

Medical Insurance
Retirement Savings Funds
Voluntary Early Retirement
Vacation and Sick Days When Retiring
Important Notification Timelines
Total Compensation/ABS

Medical Insurance

The University offers a number of medical coverage options for those eligible for retirement: one traditional fee-for-service plan (BCBS), two health maintenance organizations (BCN and HAP), one preferred provider plan (DMC Care) and two Medicare Advantage plans (Aetna Medicare Open – a private fee-for-service plan and HAP Senior Plus – an HMO). The options differ in the benefit levels they provide, the doctors and hospitals you can use, and the cost.  The university also offers group rate prices on dental and optical insurance to retirees enrolled in WSU provided health insurance programs. For details go to the Retiree Medical Insurance Handbook.

University provided insurance is available at the full group rate (this includes a “retiree rate” for those over 65). Automated Benefit Services (ABS) a third party administrator will bill retirees on a monthly basis. If you are age 65 or older, you will need to apply for Medicare Hospital Insurance (Part A) and Medical Insurance (Part B) at your nearest Social Security office about three months before your date of retirement.  Medicare will be your primary insurance.  Your university medical insurance will be secondary.  You should provide the benefits office with a copy of your Medicare card as soon as you receive it. 

For more information on university provided medical plans for retirees click here.

Alternative Medi-Gap Options to Consider

AFL-CIO sponsored program (only available to union members):
http://www.araretireehealth.com/

AARP sponsored program:
http://www.aarp.org/aarp_benefits/offer_health/

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Retirement Savings Funds
WSU faculty and academic staff with two years of University service, and who have attained twenty-six years of age are eligible to participate in a retirement defined-contribution program. Participants contribute a minimum of 5% of his/her regular salary, to a maximum allowable annual salary under Internal Revenue Service regulations, and the University contributes 10% toward the purchase of retirement annuities with TIAA-CREF of Fidelity Investments. Retirement contributions are based on regular contractual salary or wages and effective January 1, 2001, also based on wages for supplemental teaching assignments. For further information go to: http://www.hr.wayne.edu/tcw/benefits/baretprg.php

For information regarding the various options available to you through TIAA-CREF and/or Fidelity Investments TIAA at 1-800-842-2776 (New York) or at 1-800-842-2044 (the Southfield regional office) for individual counseling.  Fidelity counselors can be reached at 1-800-343-0860.

For information and advice on your 403B account check out the AARP site.

The AFT Member Plus also provides online retirement planning at: http://retirement.unionplus.org/

For information regarding Social Security Retirement benefits, go to your local Social Security Administration office, call their toll-free number at 1-800-772-1213, or visit their Web site at www.ssa.gov

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Voluntary Early Retirement (Article XII.J)
This option is available until the 2008-09 academic year*

Bargaining-unit members holding tenure or employment security status who will have attained the age of 60 as of September 1, and who have provided at least ten years of full-time service (or its equivalent) to the University are eligible to participate in a phased retirement (faculty) or retirement buy-out (academic staff) option.

To participate in this option, faculty or academic staff must submit to their dean or director and to To­tal Compensation and Wellness prior to March 1 of the academic year preceding the start of the phased retirement an irrevocable declaration of intent to begin the phased retirement / buy-out option. For all bargaining unit members the effective date of change in status shall be no later than the first day of the academic year following the submission of the declaration.

Phased Retirement for Faculty
Under this provision eligible faculty have the option of reducing their workload to 50% over three years and maintaining their benefits with the university subsidy during this time.

Retirement Buy-Out for Academic Staff
Eligible academic staff members with ten to nineteen years of full-time service to the University can chose the buy-out option and receive a payment of $8,500 per annum for a three-year period. Academic staff with twenty or more years of full-time service to the University shall receive a payment of $12,000 per annum for a period of three years. During these three years Academic staff members who elect this option are eligible to participate in one of the University-subsidized medical insurance programs with the same subsidy provided to active employees.

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Vacation and Sick Days When Retiring
Short-term disability days (AKA sick days) and vacation days will generally not be cashed out upon retiring. In most cases if you do not use this time you will lose it.

There are some exceptions to this rule. Vacation days can be cashed out with the approval of your Chair/Director, Dean and Provost if there are extenuating circumstances such as understaffing or increased workloads that made it impossible to take the time off earlier.

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Important Notification Timelines
• Contact Retirement Benefits Rep at least three to six months in advance of your last day of work to complete necessary paperwork and otherwise prepare for your retirement.

• If you are retiring at age 65 or older, apply for Medicare Hospital Insurance (Part A) and Medical Insurance (Part B) though Social Security offices about three months before your date of retirement.

• If electing the phased retirement (faculty) or the retirement buy-out (academic staff), submit a letter to your dean or director and to To­tal Compensation and Wellness prior to March 1 declaring your intent to irrevocably retire in the upcoming academic year.

• Send a copy of your letter of retirement to your supervisor or department chair and to the Department of Total Compensation & Wellness at least two weeks before your date of retirement.

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Total Compensation Contact Info
5700 Cass Avenue, Suite 3638 A/AB
Detroit, Michigan 48202
Phone: (313) 577-3717
Fax: (313) 577-0637

Business Hours: 8:30 a.m. to 5 p.m., Monday through Friday

Brett Green, Director
Mary Ann Wilson, Retirement Representative
Go to Retirement Website

Automated Benefit Services (ABS)
8220 Irving Road
Sterling Heights, MI 48312
800-521-1321 (Customer Service)
586-693-4300 (Main Number)

Fax - 586-693-1229

http://www.abs-tpa.com/

AAUP-AFT, Local 6075 - 5057 Woodward Avenue - Suite 3301 - Detroit, Michigan 48202-4050 - Phone: (313) 577-1750 / Fax: (313) 577-8159