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Retirement Incentive - Fiscal Year 2010
Special Retirement Incentive for Eligible Employees
The University of Maine System is pleased to offer a time-limited, Retiree Health Insurance Retirement Incentive program. Eligible employees are those in an eligible group who are age 60 or older and have completed 20 or more years of continuous regular service as of their date of retirement.
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Full-time Faculty members who retire between March 15, 2010 and June 30, 2010 (Fiscal Year Appointments) or August 31, 2010 (Academic Year Appointments)
- Must submit notice of intent to retire by April 15, 2010
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Police unit employees who retire between January 11, 2010 and June 30, 2010
- Must submit notice of intent to retire by February 15, 2010
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Service and Maintenance employees who retire between October 22, 2009 and June 30, 2010
- Must submit notice of intent to retire by January 4, 2010
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ACSUM (COLT) employees who retire between September 25, 2009 and June 30, 2010
- Must submit notice of intent to retire by January 4, 201
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UMPSA employees who retire between September 21, 2009 and June 30, 2010
- Must submit notice of intent to retire by January 4, 2010
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Non-Represented Salaried and Hourly employees and Law School faculty who retire between September 15, 2009 and June 30, 2010
- Must submit notice of intent to retire by January 4, 2010
Eligible employees must make a one-time, irrevocable election, at least 30 days prior to the date of retirement, to take the Retirement Incentive or to waive that Retirement Incentive and to receive instead a one-time payment of $10,000. If an eligible employee elects to take the Retirement Incentive they must select 1 (one) of the following 3 (three) options:
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Eighteen (18) months of single health coverage at active employee rate, OR
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Nine (9) months of 2 person health coverage at active employee rate, OR
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Seven (7) months of family coverage at active employee rate.
If the employee elects to waive the Retirement Incentive and instead receive a one –time payment of $10,000, it may be contributed to a retirement account or received as taxable income.
To contribute voluntarily to a retirement account, follow these easy steps:
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Set up an account with the retirement vendor, if not already done.
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Complete a new University Salary Reduction Agreement.
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Send to your Campus Human Resources / Benefits Office along with your Election Form.
To receive the Retirement Incentive, you must notify your supervisor and the university Human Resources office in writing by the due dates above of your intent to retire. You will receive an Election Form to indicate how you would like to receive the Retirement Incentive. The Election Form must be submitted to the Office of Human Resources 30 days prior to your retirement date. For your convenience, you may use this template to submit your notice of intent to retire. Once your supervisor has signed the form, forward it to the Office of Human Resources.
Retiree Health Insurance Policy
Employees who retire before reaching age 65 are responsible for paying the full health insurance premium until they reach age 65 and become eligible for Medicare. The Special Retirement Incentive described above may offset all or a portion of this premium depending on the employee’s age and coverage level.
Important changes to retiree health coverage for employees who retire on or after July 1, 2010 will affect premium amounts and eligibility to participate in the retiree health plan:
Under the current UMS retirement health plan policy, the University pays 100% of the retirees’ premium and 50% of any dependent premium when a retiree with 10 or more years of continuous, regular, full-time equivalent service reaches age 65. In 2007, the Board of Trustees approved a change in the retiree health plan for retirements that take effect on or after July 1, 2010. Eligible employees who retire on or after July 1, 2010 and who wish to participate in the retiree health plan will pay a portion of the individual premium. The percentage of the individual rate paid by employees who retire on or after this date will range from 7% - 15% depending on length of service. There will be no change in the premium for any eligible dependent(s). Employees who participate in the special incentive program will not be affected by this policy change.
Effective July 1, 2010, employees who retire with less than 10 years of service will no longer be eligible to participate in the retiree health plan. For more information about these changes to retiree benefits, visit: http://www.maine.edu/system/hr/hnwellretirees.php.
This includes information about current and future policy regarding retiree health insurance. Policies regarding retiree health insurance, including eligibility, coverage and premium contributions are subject to change in the future and could affect existing retirees.
If you have questions, you can visit our Frequently Asked Questions page. If you are interested in learning more about the retirement incentive or retiree medical benefits, please contact your University Office of Human Resources.
Last Updated: April 30, 2010