General University Reference Utility
POLICY'S INITIAL DATE: May 1, 1954
THIS VERSION EFFECTIVE: January 1, 2010
To define the conditions applicable for continuation of the University's group insurance after age 60 and age 65, or upon the retirement or death of a faculty or staff member.
Faculty or staff members who are participating in University sponsored benefit plans may continue to participate in those plans while they remain actively employed at Penn State, subject to the following limitations:
Level Premium Group Term Life Insurance ($60,000 maximum coverage amount): For individuals appointed prior to October 1, 1979, life insurance levels are reduced approximately thirty-five percent on the July 1 coincident with or next following the individual's 65th birthday. For individuals appointed on or after October 1, 1979, life insurance levels are reduced by approximately thirty-five percent on the July 1 coincident with or next following the individual's 60th birthday, and again by approximately thirty-five percent on the July 1 coincident with or next following the individual's 65th birthday.
Age Graded Group Term Life Insurance (Lesser of 8 times salary or $1.5 million maximum coverage amount): For individuals participating in the Age Graded Group Term Life Insurance Plan, life insurance levels will be reduced for active employees according to the following schedule:
Reductions will take place on the first full pay period following your birthday.
Full-Time Employees Hired Before January 1, 2010:
You may continue to be covered under the health plan benefits available to retired employees and their eligible dependents if, at retirement you meet one of the following conditions:
You are at least 60 years of age.
You have at least 15 years of regular, continuous full-time employment.
You have participated in a University-sponsored medical plan for 15 continuous years immediately preceding retirement.
You have 25 years of regular full-time employment.
You have 10 years of continuous participation in a University-sponsored health care plan immediately preceding retirement.
If you and/or your spouse is Medicare eligible, your medical plan coverage will be provided under a University sponsored retiree Medicare plan. Those eligible retirees and/or spouses who are not Medicare eligible will continue coverage in the same University sponsored medical plan in which you were enrolled prior to retirement. As you and your spouse attain Medicare eligibility, your coverage will transition to a University sponsored retiree Medicare plan. Regardless of the plan, you will be billed for your contribution by the University on a semi-annual basis.
Full-Time Employees Hired on or After January 1, 2010:
The University will contribute funds each month on your behalf to a retirement healthcare savings plan to help you to pay for qualified medical and health-related expenses in retirement, including the purchase of a health insurance policy.
You will be eligible to access your Penn State Retirement Savings Account when you are no longer actively employed at Penn State AND have:
Completed 25 years of continuous full-time service and are age 60 or older.
Completed a minimum of 15 years of continuous full-time service and are age 65 or older.
Dental and Vision Coverage
Your dental and vision plan coverage terminate at retirement. However, you may elect to continue one or both of these plans for up to 18 months under the provisions of COBRA. You must contact the Employee Benefits Division within 60 days after your retirement date to enroll in COBRA.
Each faculty or staff member who began employment with the University on or before April 30, 1954, may continue $10,000 of life insurance into retirement. Each faculty or staff member who began employment with the University on or after May 1, 1954, may continue $5,000 of life insurance into retirement.
Coverage for faculty or staff and their eligible dependents under the University's dental, vision or VADD plans ceases upon retirement, and, for dependents, upon the death of the actively employed faculty or staff member.
At the death of a retiree who continued medical plan coverage after retirement, or an active faculty or staff member who was qualified to continue coverage on the basis of age and/or length of service, eligible surviving dependents may continue to be covered under a University sponsored medical plan. Dependent children will qualify for coverage until the age of 26. Surviving spouses may continue the coverage for life, or until remarriage occurs.
If, at the time of death, a faculty or staff member was not qualified to continue medical plan coverage after retirement, coverage would continue for the surviving spouse for one year or until remarriage occurs, if earlier. Dependent children also would continue to be covered under the plan, assuming that they continued to meet the definition of a qualified dependent. Individuals interested in continuing the coverage beyond this period should contact the Employee Benefits Division regarding coverage extensions under COBRA.
1/1/2010 - Updated Eligibility for Coverage Into Retirement section.