If we determine you are eligible for retirement, the University will provide a reimbursement for the retiree’s out-of-pocket premium(s) for medical insurance. Premiums must only be for the retiree’s cost and not reimbursed elsewhere. DCP retirees can apply this to any medical plan, including Medicare. The refund is up to $648/month for 20+ years of retirement eligible service, prorated for those with 5 to 19 years.

1. Enrollment occurs at retirement, with the first payment starting the month after retirement or plan enrollment, whichever is later.
2. Annual re-certification is sent via email to confirm continued enrollment. If coverage ends, reinstatement begins the month after re-enrollment, with no retroactive payments.
3. Enrollment updates (e.g. change in medical plan, premium, bank information, etc.) must be submitted to HR.

If enrollment terminates for any reason and the retiree re-enrolls, the DCP Refund is not re-instated until HR is notified of the re-enrollment. The DCP Refund will begin the first of the month following receipt of the required enrollment form. No retroactive payments will be made.

Under Federal law and the regulations applicable to the medical premium refund benefit, CSU cannot provide a refund in excess of the actual cost of the retiree’s medical coverage premium amount. It also cannot include premiums for a spouse/partner/dependents’ medical coverage or for dental/vision premiums.

Unless otherwise noted, your CSU benefits terminate at the end of the month your retirement is effective. See the retirement checklist for more details. 

COBRA

Medical, dental and vision coverage may be continued through COBRA at the expense of the employee, for up to 18 months after the CSU separation date. A health care flexible spending account can be continued through the end of the calendar year, as long as there was a positive balance in the account at the time of separation.

You should receive COBRA information from our third-party administrator, WEX approximately three weeks after your CSU health coverage ends. You may elect COBRA coverage within 60 days of the date of the notice or the date when coverage ends, whichever is later. Coverage is retroactive to the first of the month following the end date.

COBRA premiums are 102% of the current premium for active employees (includes a 2% administrative fee.)

Other Options

Other options for healthcare may be through a spouse or partner’s page, through the Colorado Exchange or another federal exchange. You can also contact an insurance broker who may be able to provide other options.

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.