Retirees Returning to Work

Washington University frequently offers active employment to its retirees. To be eligible for retiree benefits, an employee must satisfy the “Rule of 65” at their date of retirement. Under the “Rule of 65” an employee must meet any combination of age and years of current consecutive benefits-eligible service that equals 65 or more, with two minimum requirements: (1) age 55 and (2) five years of benefits-eligible service. Service is defined as a faculty member who works 50% or more of the required full-time workload or a staff member who regularly works 20 or more hours per week.


Policy

  • If a retired faculty member returns to active employment and works less than 50% of the required full-time workload or if a retired staff member returns to active employment and regularly works less than 20 hours per week, the University will not provide benefits coverage.
  • If a retired faculty member returns to active employment and works between 50% to 99% of the required full-time workload or if a retired staff member returns to active employment and regularly works 20 or more but less than 37 ½ hours per week in a benefits eligible class, the university will provide the same health plans and same premiums as active part time employees. If the retiree/employee is age 65 or older, he or she has the option to continue Medicare coverage as primary payer or enroll in the university’s health plan, which will become the primary payer and Medicare will become the secondary payer.

    The retiree/employee may participate in the Retirement Savings Plan without jeopardizing the current or future distributions. Please note that if the retiree is age 70 ½ or older and receiving a required minimum distribution, he or she has the option to continue or stop the required minimum distribution. For a retiree/employee who re-enrolls in the Retirement Savings Plan and is eligible for the university contribution, the University contribution will be 7% of base salary.

    Dependent Child Tuition benefits are provided based upon the retiree’s employment status at the date of his/her initial retirement.

    The retiree/employee may enroll/re-enroll in the Flexible Spending Plan. But, the Health Savings Account, Retirement Medical Savings Account (RMSA), basic life insurance, optional life insurance and long-term disability benefits are not available to retirees who return to active employment.

  • If a retired faculty member returns to active employment and works 100% of the required full-time workload or if a retired staff member returns to active employment and regularly works 37 ½ or more hours per week in a benefits-eligible class, the University will provide the same health plans and same premiums as active full-time employees. If the retiree/employee is age 65 or older, he or she has the option to continue Medicare coverage as primary payer or enroll in the University’s health plan, which will become the primary payer and Medicare will become the secondary payer.

    The retiree/employee may participate in the Retirement Savings Plan without jeopardizing the current or future distributions. Please note that if the retiree is age 70 ½ or older and receiving a required minimum distribution, he or she has the option to continue or stop the required minimum distribution. For a retiree/employee who re-enrolls in the Retirement Savings Plan and is eligible for the university contribution, the University contribution will be 7% of base salary.

    Dependent Child Tuition benefits are provided based upon the retiree’s employment status at the date of his/her initial retirement.

    The retiree/employee may enroll/re-enroll in the Flexible Spending Plan. But, the Health Savings Account, Retirement Medical Savings Account (RMSA), basic life insurance, optional life insurance and long-term disability benefits are not available to retirees who return to active employment.

If a retiree returns to an active benefits-eligible full-time or part-time employment status, the retiree/employee will be required to complete new enrollment forms for the applicable plan(s) in which he/she wishes to enroll or re-enroll, regardless of the duration of break in service between the retirement date and the return-to-work date.