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Insurance & Other Benefits in Retirement

Employees retiring from the University will be notified of specific benefits termination information once their home department completes the separation paperwork.

In order to prevent a lapse in benefits coverage, it is important that you retire as indicated below. If you do not follow these guidelines, your coverage will be terminated on the last day worked, and retiree benefits will not be effective until the beginning of the following month.

  • Civil Service employees - You must work at least one day during the pay period in which your retirement date falls and utilize accrued leave benefits (or holidays) during the remainder of the pay period.
  • Academic Professional employees - Your separation date for retirement must fall on the 15th of the month, or within the last 10 days of the end of the month.

The following information assumes that you take over payment of your retirement benefits immediately following retirement. Please select from the following options, or scroll down the page, for retiree benefits information.

State of Illinois Employee Benefits
State of Illinois Dependent Benefits
University of Illinois Benefits

For additional information please view the Frequently Asked Questions about Retirement - Benefits & Insurance. You may also be interested in information about Vacation and Sick Leave Payout.

State of Illinois Employee Benefits

Health, Dental, and Vision Insurance
Coverage continues and premiums may be paid by the State/University. If you are age 65 or older at retirement, contact the Social Security office 60 days prior to retirement to insure Medicare Part B is active on your first day of retirement, if required; or when you reach age 65 after retirement, and are eligible for Medicare Part A, you will need to enroll in Medicare Part B. You will be required to pay the monthly premium for Part B, either as a deduction from any social security benefit you receive or by check on a quarterly basis. For further information, please visit the Medicare page.

Basic Life Insurance
If retiring before age 60, life insurance continues at 100% of salary until age 60. If retiring at age 60 or later, life coverage immediately decreases to $5,000. Premiums are paid by the State/University. Amount of coverage lost in excess of $5,000 can be converted to an individual plan directly with the company.

Optional Life Insurance
Coverage up to four times the basic life amount above. If retired and age 60, maximum optional is $20,000. Premiums are deducted from your retirement check. Any optional coverage lost at retirement or age 60 can be converted along with basic amount lost above, or retained as term coverage on a portable basis. Contact your campus UPB Benefits Services office for rate information.

Optional Accidental Death and Dismemberment Insurance
Coverage continues at the maximum coverage basic level plus the optional life above. Maximum if retired and age 60 is $25,000. Premiums are deducted from your retirement check.

State of Illinois 457 Deferred Compensation Plan
You are the owner of the assets in your 457 plan. The State 457 Plan offers a number of choices for distribution. For a detailed description of these choices and associated limitations, consult the Central Management Services (CMS) booklet Make the Decision That's Best for You.

State of Illinois Dependent Benefits

Health Insurance
Coverage continues with no change (includes children to but not including age 26). Premiums are deducted from your retirement check.

  • Spouse (does not include ex-spouses, common-law spouses or those not legally married).
  • Same-Sex Domestic Partner * (enrolled prior to June 1, 2011)
  • Civil Union Partner (enrolled on or after June 1, 2011).
  • Children from birth up to but not including age 26, including:
    • Natural child.
    • Adopted child.
    • Stepchild or child of a civil union partner.
    • Child for whom the employee has permanent legal guardianship.
    • Adjudicated child for whom a U.S. court decree has established an employee's financial responsibility for the child's medical, dental or other healthcare.
  • Children age 26 and older, including:
    • Adult Veteran Child. Unmarried adult child age 26 up to, but not including, age 30, an Illinois resident and has served as a member of the active or reserve components of any of the branches of the U.S. Armed Forces and received a release or discharge other than a dishonorable discharge.
    • Other. *
      • Recipient of an organ transplant after June 30, 2000, and eligible to be claimed as a dependent for income tax purposes by the employee, except for a dependent child who need only be eligible to be claimed for tax years in which the child is age 27 or above, or
      • An unmarried individual continuously enrolled as a dependent of the employee in the State Insurance Program (or CNA for university staff) since 2/11/83 with no break in coverage and eligible to be claimed as a dependent for income tax purposes by the employee. The period of time the dependent was enrolled with Golden Rule Insurance Company (prior to April 1, 1988) does not count toward the requirement of continuous enrollment
    • Disabled. Child age 26 or older who is continuously disabled from a cause originating prior to age 26. In addition, for tax years in which the child is age 27 or above, eligible to be claimed as a dependent for income tax purposes by the employee.

* Not eligible for State life insurance coverage.

Dental and Vision Insurance
Coverage continues and premiums are deducted from your retirement check (vision insurance is provided at no cost).

Optional Spouse Life Insurance
Coverage continues at the amount of $10,000; however, coverage reduces to $5,000 when the spouse turns 60. Premiums are deducted from your retirement check.

Optional Child Life Insurance
Coverage continues for children in all categories, except the Other category, in the amount of $10,000. Premiums are deducted from your retirement check.

University of Illinois Benefits

Employee and Dependents Term Life Insurance
Coverage may continue on same three-year term basis to age 70; premium remains the same as that for an active employee plus a $15 annual billing fee. Children may be covered to age 25 regardless of status as your dependent. Premiums are be billed quarterly by the company; the first bill should be received within three months of retirement.

Employee and Dependents Accidental Death and Dismemberment Insurance
Coverage may continue up to $100,000 for one year following retirement. You must pay premiums in advance at retirement.

Employee Long Term Disability
Coverage terminates at retirement.

Supplemental 403(b) Retirement Plan
Employee contributions stop at retirement. Withdrawals of pre-tax and Roth 403(b) funds can be delayed until as late as age 70 ½ when the IRS required minimum distribution must begin.

Maintained by University Human Resources | Contact Information | Last Update: 07-November-2013 | ID: 1179