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2.1.060 Retirement Benefits Policy
University of Central Missouri Policy
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Policy Name: Retirement Benefits Policy |
Date Approved: Previous policy titled Retirement Benefit for Full-Time Non-Faculty |
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Policy Category: Board of Governors - Employment Terms, Classifications, and Benefits |
Date Effective: |
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Policy Number: 2.1.060 |
Date Last Revised: |
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Approval Authority: Board of Governors |
Review Cycle: |
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Responsible Department: |
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I. Purpose
The University of Central Missouri provides faculty and staff members financial retirement benefits, as well as health insurance benefits for qualified early retirees. This policy defines those benefits awarded to retiring faculty and staff.
II. Policy
A. Financial Retirement Benefits
Financial retirement benefits for UCM faculty and staff are provided through the Missouri
State Employees’ Retirement System (MOSERS). MOSERS administers both “defined benefit”
and “defined contribution” public employee retirement plans in accordance with Chapter
104, RSMo and Section 401(a) of the Internal Revenue Code.
Information regarding MOSERS retirement benefits may be obtained from UCM’s Office
of Human Resources.
B. Health Insurance Benefits for Early Retirees
- The university will pay health insurance premiums for qualified retired faculty and
staff members until they reach their 65th birthday or Medicare eligibility. To qualify
for continued health insurance benefits, retired faculty and staff members must either:
a. exercise their option under MOSERS for a “Rule of 80” retirement with a minimum of 13 years of employment at UCM upon retirement; or
b. be at least 57 years of age with a minimum of 13 years of employment at UCM upon retirement. This section shall be repealed December 31, 2006
The university will continue to pay health insurance premiums in full for qualified retired faculty and staff members who are enrolled prior to January 1, 2007, until they reach age 65 or become Medicare eligible.
Effective January 1, 2007, employees will qualify for up to five years of continued UCM health insurance benefits when the sum of an employee’s age and years of service equals 80 or more with a minimum of 20 years of employment in a benefits eligible position at UCM upon retirement. The last 10 years of an employee’s 20 years of employment in a benefits eligible position must be consecutive years of service at UCM. (“Qualified retirees”)
Qualified retirees upon retirement after January 1, 2007 will be eligible for a fixed dollar UCM contribution based on the 2007 premium for five consecutive years beginning immediately upon retirement. Qualified retirees will be responsible for the difference, if any, between the fixed dollar UCM contribution for which they qualify and the then current monthly premium. Should monthly premiums fall below the 2007 premium level, retirees will not be owed the difference between the fixed dollar UCM contribution and the then current monthly premium.
Early retirement fixed dollar UCM contribution for persons who qualify for early retirement benefits during 2007 will be equal to the 2007 premium. For the retirees during each subsequent calendar year the fixed dollar UCM contribution will be a decreasing proportion of the 2007 premium as indicated in the schedule below. *The UCM Early Retirement Contribution Schedule will be updated with the 2007 premium amount when it is identified. (Updated 09/20/2006)
*UCM EARLY RETIREMENT PREMIUM CONTRIBUTION SCHEDULE Retirement Date 2007 UCM Monthly Premium Contribution January 1, 2007 to December 31, 2007$758January 1, 2008 to December 31, 2008682January 1, 2009 to December 31, 2009606January 1, 2010 to December 31, 2010531January 1, 2011 to December 31, 2011455January 1, 2012 to December 31, 2012379January 1, 2013 to December 31, 2013303January 1, 2014 to December 31, 2014227January 1, 2015 to December 31, 2015152January 1, 2016 to December 31, 201676
Qualified retirees upon retirement after January 1, 2017, will be eligible to participate
in UCM’s health insurance benefit only by paying the full cost of the premium established
for pre-Medicare eligible retirees.
2. When retired faculty and staff members become eligible for Medicare, they may continue
their health insurance through UCM’s health care plan, at their own expense, as a
supplement to Medicare.
3. Dependent health insurance coverage may be purchased by the retiree if coverage
for the dependent was in effect three months prior to retirement.
4. Qualified UCM retirees who become benefits eligible employees through non-UCM employment
are not eligible for participation in UCM’s health insurance benefit. Retirees who
become participants as non-UCM employees in other benefits programs have a duty to
report their status to UCM and to cease participation in the UCM health insurance
benefit. Discovery of failure to do so entitles and obligates UCM to take action to
recover an amount equal to said benefits from the retiree.