We periodically hear from employees who have met the eligibility criteria for retiree medical coverage that they would like to transition into retirement or continue to provide services to the university on a periodic basis. Effective May 1, 2024, the following gradual retirement process will apply for employees who have met the eligibility criteria for retiree medical coverage (Rule of 65) and who reduce their regular scheduled hours to less than 20 hours per week (0-19.99):
- They will be eligible to continue their active medical, dental and vision coverage at part-time rates.
- They will receive invoices at their home address from HealthEquity/WageWorks for their medical, dental and vision contributions.
- Contributions must be made on a timely basis or coverage will be terminated.
- They will not be eligible to enroll in the under 65 retiree PPO option or the retiree Medicare supplemental coverage while employed by the university.
- Their other health and insurance benefits will end either as of the date their scheduled weekly hours are reduced to less than 20 or as the end of the month in which that occurs based on plan rules that apply to other employees whose scheduled weekly hours are reduced to less than 20.
- Their contributions to the RMSA will stop but they will not be able to access those funds until they fully retire.
- Their contributions to the 403(b) Retirement Savings Plan will continue based on their current contribution election. If they contribute at least 5% of pay, the university contribution will also continue.
When a voluntary retirement is being entered, a pop-up message will appear indicating that if the employee is planning to continue work or immediately return to the university, a retirement should not be entered.
Employees should not be left in gradual retirement with scheduled weekly hours less than 20 indefinitely. If an employee has met the Rule of 65 and is still in an active status with scheduled hours less than 20 and has not worked for 6 months, they should be reviewed to determine if they should be fully retired.
If there are no plans to have the employee return to the university or continue working on a reduced or periodic schedule, a retirement event should be entered.
If an employee does fully retire, they may not be rehired for at least 31 days after their retirement. They may not be rehired as a temporary employee.
The above changes do not apply to employees who have not met the eligibility requirements for retiree medical coverage (Rule of 65). Employees who are not eligible for retiree medical coverage and who reduce their regular scheduled hours to less than 20 may be eligible for either ACA coverage or COBRA coverage.
If you have any questions, please contact the Benefits team at hr-benefitsmail@wustl.edu or 314-935-2332, option #1.