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UT System Retirement Planning Guide

Employees planning to retire from The University
of Texas System have several details to think about as they transition to retirement. This
video from UT System’s Office of Employee Benefits will give you a brief overview of
important topics. We will discuss:
Financial retirement, Secure Retired Employee insurance,
Coordination of benefits, Billing,
Additional action items; and Resources.
For more detailed information about retirement, please refer to the published Retiree Enrollment
Guide online. Your HR/Benefits office is also a helpful resource, and you should be in contact
with them throughout the retirement process. FINANCIAL RETIREMENT
Eligible employees from the University of Texas System receive two types of retirement
benefits: Financial – administered by your retirement
system; and Secure retired employee insurance – administered
by the Office of Employee Benefits (OEB) Financial benefits are offered if you meet
the eligibility guidelines of the mandatory retirement systems. Those systems are:
TRS – Teacher Retirement System of Texas ERS – Employee Retirement System of Texas
ORP – Optional Retirement Program You must officially establish legal status
as a Retired Employee through your particular retirement system to receive any UT Retired
Employee insurance benefits.

SECURE RETIRED EMPLOYEE INSURACE ELIGIBILITY Your employment status with UT System during
August 2003 determines your eligibility requirements for Retired Employee insurance. Please refer
to the eligibility chart in the Retiree Enrollment Guide to find your requirements. ENROLLMENT Eligible employees should enroll in Retired
Employee insurance within 31 days of retirement. If you do not enroll during this time frame,
you must wait until the next Annual Enrollment period or a Qualified Life event.
If you transition directly from Active to Retired status, you do not have a waiting
period for benefits.

Your medical, dental, and vision elections will carry over, but
you will need to elect the $6,000 Basic Life and any desired Voluntary Group Term Life
coverage. Those who terminate employment without retiring
and later apply for Retired Employee insurance will have a waiting period for benefits, excluding
any optional benefits paid fully by the Retiree. When this is the case, you are not eligible to participate in the Basic Package until
the first of the calendar month following 90 days after the retirement date. However,
you still need to make elections within the first 31 days of retirement for all your desired
coverage.

Benefits elections are completed on the online
My UT Benefits enrollment platform. Visit utbenefits.link/Manage to navigate to your
institution’s login page. BASIC COVERAGE PACKAGE
Your Basic Coverage Package consists of the UT SELECT or UT CONNECT medical plan with
prescription drug coverage and $6,000 in Basic Life insurance. UT CONNECT is available for
non-Medicare Retired Employees residing in the Dallas/Fort Worth area.
Your Basic Coverage Package includes access to Living Well resources. For UT SELECT members,
it also includes the Silver Sneakers program. Premium Sharing is in place for benefits-eligible
Retired Employees. UT System and the State of Texas will cover 100% of your premiums
for the Basic Coverage Package, and up to 50% of the premiums for your dependents’
medical coverage. OPTIONAL COVERAGE
Optional coverage for Retired Employees includes the following: Dental, Vision, and Voluntary
Group Term Life coverage.

Like Active Employment options, you can add eligible dependents to
any of your elected benefits. You may elect Voluntary Group Term Life coverage
in the amount of $7,000, $10,000, $25,000, $50,000, or $100,000. You may also elect $3,000
in coverage for your eligible spouse. Evidence of Insurability is not required for
Voluntary Group Term Life insurance when there is no break in coverage between Active and
Retired status, and when you elect up to the amount held as an Active Employee, up to $100,000.
Evidence of Insurability is required when you either have a break in coverage between
Active and Retired status or you wish to increase your or your spouse’s coverage amount. COORDINATION OF BENEFITS
For all Medicare-eligible Retired Employees, Medicare is the primary payer for your medical
claims and UT SELECT is the secondary payer. Because of this, UT System urges all Retired
Employees and dependents to enroll in Medicare Parts A & B when they become eligible at age
65, or earlier if they are eligible due to a disability.
Medicare-eligible Retired Employees must have Medicare Parts A & B to receive the maximum
benefits available from the UT SELECT plan.

However, they should decline any Part D prescription
drug plans offered by private carriers. The Retiree Enrollment Guide includes detailed
information about UT SELECT and Medicare, like this coordination of benefits chart. BILLING UT Benefits Billing is located within the Office of Employee Benefits. They handle premium
billing for Retired Employees from all institutions except UT Austin. If you retire from UT Austin,
you will pay premiums directly to your institution. Several options are available for paying monthly
premiums on any coverage beyond the Basic Package. These include an ACH automated monthly
draft from your bank account and TRS monthly annuity deductions. The TRS annuity deduction
is an option available for TRS Retirees from all institutions except UT Austin. ADDITIONAL ACTION ITEMS Depending on your personal circumstances, you may need to take additional action as
you transition to retirement.

Outlined here are five action items that may be relevant
to you. 1) Contact the Social Security Administration
to determine whether you meet the guidelines for their pension plan. It may take up to
three months to set up these payments. 2) If you or your covered dependents are or
will soon be eligible to receive Medicare, reach out to the Social Security Administration
to determine your enrollment requirements. 3) Contact Blue Cross Blue Shield of Texas
Ancillary within 30 days of ending employment if you wish to convert any of your Voluntary
Group Term Life insurance to a whole life policy. 4) Contact your UT SAVER voluntary retirement plan providers approximately three months prior
to your anticipated retirement date if you want to begin receiving distributions.

You
should also cancel your contributions through the online Retirement Manager or with your
HR/Benefits office prior to the final month of employment. 5) If you retire through the Optional Retirement Program you should contact your HR/Benefits
office to complete the Declaration of Retirement in addition to contacting your ORP vendors. RESOURCES The Retiree Enrollment Guide, filled with detailed information, can be found online
at utbenefits.link/RetireeEnrollGuide. The guide includes benefit cost worksheets, information
about special circumstances, and more.

Resources for Financial Retirement:
TRS information can be found at trs.texas.gov or (800) 223-8778.
ERS information is at ers.texas.gov or (877) 275-4377.
ORP vendor information for our five approved providers is at utbenefits.link/RetirementProviders. You can visit us online at utsystem.edu/benefits. Our page includes items like plan details
and contact information for your HR/benefits office and plan administrators. Also find
us on Facebook – we are UT Benefits. Thank you for your service to The University
of Texas System.

The Office of Employee Benefits is pleased to provide you with coverage, and
we continue to be here for you as you transition to this new part of your life. On behalf of
our office, enjoy your retirement!.

As found on YouTube

Retirement Guide

Posted in Retiree Tips, Retirement Planning Guide

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