The University will contribute towards the cost of the retiree only portion of medical insurance coverage for out-of-pocket costs not reimbursed through another entity.  DCP retirees may apply this premium refund to any medical plan, including Medicare. The maximum amount of the refund is $648 per month for retirees with 20 years or more of benefit eligible University service, prorated for those who have at least 5 years but less than 20 years of benefit eligible service.

It is the retirees responsibility to notify HR of:

1. Initial enrollment in the Refund Plan to begin the refund (certification of medical plan enrollment and out-of-pocket costs for medical insurance coverage is required);
2. Any subsequent changes affecting enrollment in the Refund Plan including changes in medical plan, premium costs, home address and bank routing information within 30 days of the effective date of the change, and:
3. Continued enrollment in the Refund Plan on an annual basis.
   
   1. A re certification notice will be mailed to the retiree’s last address of record at the end of each calendar year.
   2. The re-certification must be sent to the address listed in the notice by the due date or the Refund plan will be automatically ended.

If enrollment in the Refund Plan terminates for any reason and the retiree wishes to re-enroll in the future, the Refund Plan will not be re-instated until HR is notified of subsequent eligibility the proper certification forms are completed. The Refund Plan will not begin or be re-instated until the first of the month following receipt of the required enrollment verification.  No retroactive payments will be made.

Note: The University cannot, under Federal law and regulation applicable to this medical premium refund benefit, provide a refund in excess of the actual cost of the retiree’s medical coverage.  The actual cost of the retiree’s medical coverage means the actual premium amount required to provide the retiree medical coverage and cannot include premium amounts for a spouse and/or dependents’ medical coverage and/or for dental/vision coverage premiums.

Eligibility Requirements

• Active employees must be enrolled in one of the University’s medical plan options for at least one full plan year immediately prior to the date of retirement in order to be eligible to enroll in the University’s retiree medical plan immediately after retirement;
• Retirees must be continuously enrolled in the University’s retiree medical plan to remain eligible to continue such coverage for themselves and their spouses/domestic partners and dependents. Once retirees leave the plan, the retirees and their spouses/domestic partners and dependents will not be permitted to re-enroll again at a later date;
• Retirees’ coverage under the University’s retiree medical plan will terminate upon reaching age 65 or becoming eligible for Medicare, whichever is earlier. Covered spouses or domestic partners will be terminated from the plan upon the earlier of reaching age 65 or becoming eligible for Medicare, regardless of whether or not the retirees’ coverage has been terminated due to Medicare eligibility. Covered dependent children remain eligible for coverage subject to normal eligibility criteria-generally
  age 18 or 23 if a full-time student-or until they become eligible for Medicare, whichever occurs first. Spouses/domestic partners and dependent children may continue coverage as long as they were covered at the time the retirees’ coverage terminated due to Medicare eligibility and as long as they remain continuously covered under the plan.

Termination at or after Age 55
When an employee leaves CSU at or after age 55, they are entitled to their entire DCP account balance. Depending on the DCP investment company and the type of investment selected, they may be able to take the account balance as a lump sum payment, in installment payments, or convert it to an annuity which provides monthly payments for life. They can also leave it with the investment company for a distribution at a later date subject to certain limitations established under Federal tax law; or they can roll the account balance into another IRS approved, tax qualified plan.

Termination Prior to Age 55
If an employee leaves CSU prior to “normal” retirement age (55) for any reason other than death or disability:

• They can leave the account balance in the DCP until age 55 or later. If they choose this option, they continue to have full control over the investments and  account balance according to the provisions of the DCP. When they reach age 55, they can access, depending upon the DCP investment company and type of investment selected, the entire account balance in a lump sum, in installment payments, or they can convert the account balance to an annuity which provides monthly payments for life.
• They can roll the account balance into another IRS approved, tax qualified plan. Other tax-qualified Plans may include another employer’s 401(a) or 401(k) plan, or an Individual Retirement Account (IRA). In order to avoid tax penalties or federal income tax withholding, they must roll your account balance directly from your DCP investment company to another tax qualified plan.
• If the total account balance is $10,000 or less, they have immediate access to the funds.

Borrowing or withdrawing money from a DCP account may have income tax and other consequences. In addition, the ability to borrow or withdraw, and the limits thereon, may change as tax laws and regulations change. Contact the investment company directly for more information about that company’s loan provision. Employees are encouraged to seek independent tax advice with respect to the relationship and application of all matters under the DCP to their individual tax circumstances.

Upon retirement, faculty and administrative professionals are paid for ¼ of their unused sick leave up to a maximum of 15 days.

Retiring faculty and administrative professionals on 12-month appointments are paid up to a maximum of 24 days of accrued unused annual leave. Any annual leave taken during the 30 working days immediately prior to the date of separation from employment will be subject to the 24 day maximum.

Note: Leave balances are provided to HR by the employee’s home department.