Ask UF

I am currently age 65 and will be retiring in the next year. What happens to my health insurance when I retire, and when do I enroll in Medicare?

askuf — Wed, 28 Sep 2005 21:17:58 +0000

You may continue your health insurance when you retire. However, if you or your dependent are age 65 or over at the time of retirement, your health insurance coverage will convert to a supplemental health plan to Medicare. What this means is that the state plan will become the secondary payor and Medicare will become the primary coverage. You should contact Social Security Administration to purchase Medicare Part B, which will cover approximately 80 percent. The state health plan offered will only be responsible for 20 percent of the coverage. If you or your dependent are less than 65, the health plan will continue to provide full coverage. Both Medicare and the state health plan have deductibles and co-payment provisions. For more information, please call University Retirement at (352) 392-2477, SC 622-2477, or visit our Web Site.

I have been granted a sabbatical for the next academic year and my salary will be reduced to half salary. How will this affect my pension plan?

askuf — Wed, 28 Sep 2005 20:54:07 +0000

If you are enrolled in the Florida Retirement System (FRS), you will receive regular service credit for each month that you are on sabbatical. However, if your sabbatical is half time this may not be one of your highest five years used for pension calculation. For faculty enrolled in the Optional Retirement Program (SUSORP), the university will continue to contribute the approved retirement percentage, currently 10.32 percent, based on salary paid during the period of the sabbatical. For more information, visit our Web Site.

I recently came to the university and have a choice of the Florida Retirement System (FRS) or the Optional Retirement Program (ORP). I have selected the ORP, but have not selected a company for the employer’s contribution. How soon do I need to select a company?

askuf — Wed, 28 Sep 2005 20:47:34 +0000

You are not properly enrolled in the Optional Retirement Plan until you have completed an ORP-16 form designating one of the approved companies for the employer contributions, signed an application for contract with one of the approved ORP companies, and forwarded the ORP-16 to Human Resources within 90 days of your employment/appointment for processing. For more information, contact University Retirement at (352) 392-2477 or retirement@ufl.edu.

When should I begin planning for future retirement benefits?

askuf — Wed, 28 Sep 2005 20:40:01 +0000

Employees, regardless of age, should begin planning for the future when beginning their work career. This includes participating in the employer’s pension plan and taking advantage of any other supplemental retirement programs (tax-sheltered annuities) that the employer may offer. The university offers tax-sheltered annuity plans that the employee may enroll in and voluntarily have money deducted from their paycheck. The money is invested by the annuity company and any money deducted from the paycheck and interest earned will be tax deferred until the money is withdrawn from the account. For additional information, please contact the University Retirement Office at (352) 392-2477.

May I purchase the service time while on a leave of absence without pay toward the length of service in the Florida Retirement System?

askuf — Wed, 28 Sep 2005 20:31:02 +0000

Yes. You may purchase the months of service while on leave of absence up to a maximum of 24 months. However, the time will not count toward the initial vesting period. The costs of purchasing a leave of absence will depend upon the year placed on leave, the retirement contribution rate for that year, the number of months being claimed, and interest for each fiscal year that the balance has been unpaid. For more information, visit our Web Site.

Can I claim prior state service with a state agency or the State University System (SUS) toward higher annual leave accrual?

askuf — Wed, 28 Sep 2005 20:24:02 +0000

Yes, upon verification of employment service. If you make application for service credit for leave accrual within 60 days of your employment with the University of Florida, the service credit will apply immediately. If you apply after 60 days, leave accrual will apply from the date Processing and Records is notified. Please do not confuse this verification of prior service with application for service credit toward pension vesting. This is a separate process, and you should contact University Retirement at 392-2477, SC 622-2477, for assistance. For more information, visit Human Resources.