Preparing to Retire – DCP Participants

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Contact

Human Resources
[email protected]
(970) 491-6947

Congratulations on your retirement!

To be considered a “retiree” an academic faculty member, administrative professional or state classified employee who is a participant in the Defined Contribution Plan for Retirement (DCP) or who is a participant in the Colorado Public Employees Retirement Association (PERA) appointed or reappointed on or after July 1, 2005 must be:

  • Age 55 or greater with at least 20 years of “service” or
  • Age 60 or greater with at least 5 years of “service”

“Service” for this purpose includes periods of employment with Colorado State University during which the person:

  • Received, or was eligible to receive, the University’s contribution to the DCP or to PERA
  • Had an appointment of at least half-time
  • Received, or was eligible to receive, the University’s contribution toward benefits, for example health insurance

Periods of service need not be continuous but there must be a minimum of five consecutive years of service immediately preceding the date of retirement. Periods of paid or un-paid leaves of up to 1 year in duration during which the person received, or was eligible to receive, the University’s contribution toward benefits shall be counted as “service”.

Any academic faculty member, administrative professional or state classified employee may retire only once from the University and any subsequent period of service shall not result in any increase in post-retirement benefits.

Thank you for your continuous commitment to this University. The impact you have made on our community is immeasurable and your achievements have helped support the mission and success of CSU. 

We are pleased to share resources regarding retirement on this page. Please follow the guidance below to complete your retirement process.

Step 1: Request a Counseling Session with Human Resources, 60-90 days prior to your retirement date.

Step 2: Download the Retirement Checklist. Upload a signed copy to the HR OneDrive secure portal no later than one month prior to your retirement date.

Step 3: If eligible for enrollment in the DCP Premium Refund:

  • A WEX account will be created for you after you complete your retirement counseling. You will receive an email with instructions when your account has been created.
  • Submit the WEX DCP Refund Enrollment Form and proof of premium to WEX by the 20th of the month your retirement is effective.
  • Enter your direct deposit information in WEX’s system. This must be done by the last business day of the month to begin payments the following month. Until direct deposit is set up, payments will be mailed by check.
  • No retroactive payments will be made if the information is not entered timely. 

Step 4: Enjoy retirement!

If you would like to review your current CSU Benefits, please Log into Workday

Benefits After Retirement

If we determine you are eligible for retirement, the University may contribute to retiree-only medical premiums for employees enrolled in the Defined Contribution Plan at the time of retirement.  For employees who previously worked in an ineligible classification type (for example, Graduate Assistants, Non-Student Hourly, State Classified, etc.), the DCP retirement eligibility determination and maximum refund amount is based only on service in an Academic Faculty or Administrative Professional position while enrolled in the Defined Contribution Plan (DCP). Service in ineligible classifications is not included in the benefit calculation.

Example: An employee works at the University for a total of 15 years. They work in an ineligible classification for 7 years and then work as an Administrative Professional enrolled in the DCP for 8 years. Their maximum DCP Refund will be based on 8 years of service, provided they meet the eligibility criteria in the University’s definition of retirement.

Refunds may be applied to any medical plan, including Medicare, up to $648/month for 20+ years of benefit-eligible service and prorated for 5–19 years. 

The program is administered by WEX.  A WEX account will be created for you after you complete retirement counseling with Human Resources. 

  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 required 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 WEX.

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

If an employee is determined to be eligible for retirement, they may also be eligible for the DCP Green Plan if they served as Academic Faculty or Administrative Professionals and were enrolled in the Defined Contribution Plan as their mandatory retirement plan at the time of retirement. Additional criteria must also be met:

  • 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.

Transitioning to Medicare can feel overwhelming, but Anthem’s Move to Medicare services are here to help. Whether you’re exploring options, trying to understand eligibility and enrollment, or ready to make a decision, expert guidance is available at no cost to you.

📞 Talk to an Agent for Free Advice
Call: 1-844-296-3822 (TTY: 711)
Monday–Friday, 8 a.m. to 8 p.m. local time

📧 Email for Personalized Support: [email protected]

💡 Need 1:1 Concierge Service for a Complex Situation? Email HR Retirement to get connected with an expert for tailored guidance.

Additional Resources

Sick and Annual Leave Payout

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. 

The calculation below may be used to calculate either sick or annual leave payout amounts:

Monthly Salary Rate ÷ 173 Hours x 8 Hours = Daily Salary Rate
Daily Salary Rate x [lesser of the maximum days or unused days of leave] = leave paid upon retirement

You can contribute leave payouts to your CSU 403(b), 401(k) or 457, as long as you remain under the IRS maximums.

Fidelity 403(b): You must update your contributions through NetBenefits or by calling Fidelity at 800-343-0860 the month prior to your retirement date.

PERA 401(k): To update your contributions, log into Workday and follow the instructions to update your voluntary retirement contribution. 

PERA 457: Changes to the 457 plan are made through Empower and must be made by the 25th of the previous month, for the next month’s contributions.

Additional Retirement Information

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.

Transitional Appointments are negotiated directly with your department as per section E.2.1.6 of the Academic Faculty and Administrative Professional Manual. The Transitional contract can be found on the Provost’s Office website.

Retirement Plan Requirements: When you begin a transitional appointment, the following applies:

Defined Contribution Plan (DCP):

  • You must continue participation in the DCP during your Transitional Appointment.
  • You may elect to receive a distribution from your DCP account(s) once you commence your Transitional Appointment however the withdrawal may be subject to a 10% Federal Income Tax penalty as an “early withdrawal” from a qualified tax deferred pension plan if you have not reached the age of 59 ½.  You are advised to consult your tax advisor for guidance.
  • If you are also a PERA retiree, the employer contribution to your DCP is reduced by the amount CSU is required to contribute to PERA during your Transitional Appointment.

Leave Payout

Sick Leave: Prior to beginning your Transitional Appointment, you will be paid ¼ of your unused sick leave up to a maximum of 15 days, in accordance with the University’s retirement policy. Any remaining sick leave in excess of your payout (up to 60 days) will be available during your Transitional Appointment. No further payout is made at the end of the Transitional Appointment.

Annual Leave: Faculty on 12-month appointments will be paid up to 24 days of accrued unused annual leave prior to beginning the Transitional Appointment.  If eligible, you will continue to earn annual leave during your Transitional Appointment, but no further payout will be made at the end of the Transitional Appointment.

CSU Benefits: You remain eligible for all benefits during your Transitional Appointment and you continue to receive the CSU contribution during this time.

Ending Transitional Appointments: Schedule an appointment with Human Resources 60 to 90 calendar days prior to the end of your Transitional Appointment.

Employees who retire with the DCP are not restricted from returning to work with the University.

If you return in a faculty/administrative professional appointment (salaried payroll), you must enroll in the University’s Defined Contribution Plan (DCP) and Medicare tax will be withheld from your pay. The employer contribution to the DCP will be reduced by any amount CSU is required to contribute to PERA for PERA retirees.

If you return to work in a benefits eligible position, your post-retirement benefits such as the DCP Retiree Medical Premium Refund will be stopped for the duration of your benefits eligible assignment.

CSU retirees have the ability to: