Benefits During Retirement
Health & Dental Insurance
Employees who have health and/or dental insurance are eligible to continue the coverage in retirement. The employer contribution to the active employee health insurance premium will end at the end of the month in which the employee retires. Retiring employees must complete forms for continuing or cancelling current benefits, which will be given to the employee during the retirement exit interview.
Members of certain labor groups may be eligible to continue to receive an employer contribution to health insurance premium after retirement, per their respective collective bargaining agreements, and will be considered employer-paid annuitants.
Retirees may cancel health or dental coverage at any time. If coverage is canceled, there will be no future opportunity to re-enroll.
Retirees must enroll in Medicare Parts A & B at age 65 years. Failure to enroll will end eligibility for Group Health coverage.
If the value is greater than $2000, sick leave time will be administered through Precision Retirement Group or another Post Employment Health Plan (PEHP). Value of $2000 or less will be paid out.
Vacation, floating holiday or compensatory time may not be placed in a PEHP or Prime Choice account with sick leave.
Vacation & Holiday Leave
Retiring employees may use or be paid for vacation, floating holiday, and compensatory time hours for the year of retirement. An employee retiring on or after January 1 (who was in a paid status in the year of retirement) will receive all vacation, floating holiday, and compensatory time for the year of retirement, to either be paid or to be used day by day (use of vacation to remain on the active payroll may require that a minimum notice be provided to the employee's City agency, subject to the applicable employee benefits handbook or employment agreement). Vacation carried over from the previous year, usually less than two weeks, is also available to be used or paid out.
Vacation, floating holiday, or compensatory time paid out at retirement is not included as WRS earnings. Such time used to extend active employment is included as WRS earnings. The retirement date is the employee’s last day in a paid status, whether physically at work or using paid leave time.
An employee participating in deferred compensation may choose to put the value of accrued paid leave time (other than sick leave with a total value that exceeds $2,000) in that account, up to the annual maximum.
An employee who retires before age 65 may maintain the coverage they had in effect prior to retirement or may reduce coverage to a lower level, by continuing to pay premiums at the same rates as non-retirees until age 65. Dependent coverage may continue with a retiree's continuing coverage. Bills for premiums will be sent quarterly.
Retirees may reduce coverage at retirement or any time afterward. A retiree who drops all life insurance coverage may not re-enroll.
After Age 65
- If an employee retires before age 65 and continues life insurance coverage after retirement, upon reaching age 65 Basic coverage will continue at no cost (at a reduced percentage of the amount of coverage, indicated below) after they turn 65.
- An employee who retires after reaching age 65 will automatically have continued coverage in retirement.
- Supplemental coverage is not available to retirees over age 65.
For example, a 66 year old retiree whose basic coverage was $50,000 will be covered for 50% of their basic coverage, or $25,000, at no cost.
|Age||Percent of Basic Coverage|
Life insurance beneficiary designation may be changed at any time.
Family members or beneficiaries need to know about continued coverage, and must contact Human Resources after the retiree's death. Human Resources will facilitate the claim.
An employee participating in flexible spending in the year of retirement may end regular deductions as of the final paycheck or may have the balance of the full year’s election amount deducted from the final paycheck.
Eligible expenses may be incurred through December 31 of the year of retirement. Requests for reimbursement must be submitted no later than 90 days following December 31 of the year of retirement. Eligible expenses may be reimbursed up to a maximum of the amount deducted from the beginning of plan year through the final paycheck.