Retirement

Participation

Retirement plans are voluntary and are designed to provide long-term financial security. Benefits-eligible faculty and staff may participate in the program immediately upon employment or at any time thereafter. Participants manage contributions by allocating dollars between two investment institutions, TIAA/CREF and Fidelity, and within those companies among any number of investment vehicles.

The Operating Staff Retirement Plan (OSRP) is a defined benefit plan for staff members who joined the plan prior to January 1, 1987.

Contributions - OS/PAT/EE Staff and non-AAUP Faculty

Employees elect to have contributions withheld from their paycheck on a before-tax basis by making their retirement benefits choices in the online benefits system, Aliquant. www.myusnhbenefits.net Once signed in, click on Enroll in or Change Retirement Benefits and follow the steps to enroll. Important: A retirement account must also be opened with the appropriate vendor in order to complete the enrollment process (access TIAA and/or Fidelity online enrollment instructions above).

If the Initial Contribution Level is elected, six percent (6%) of the Employee’s base salary will be contributed into the USNH Retirement Plan along with the appropriate Employer matching contribution. Effective the first pay period of the month following one year of active participation, the Employee will be eligible for the Standard Contribution, which may provide for a higher contribution by the Employer.

If the Alternate Employee Contribution Level is elected, two and one half percent (2 ½%) of the employee’s salary will be contributed into the USNH Retirement Plan along with the appropriate USNH matching contribution.

The amount of the salary reduction shall be:
 

Once a contribution level is selected, the participant has the option to split the contributions between TIAA/CREF and Fidelity.

Contributions - AAUP

Employees elect to have contributions withheld from their paycheck on a before-tax basis by making their retirement benefits choices in the online benefits system, Aliquant. www.myusnhbenefits.net Once signed in, click on Enroll in or Change Retirement Benefits and follow the steps to enroll. Important: A retirement account must also be opened with the appropriate vendor in order to complete the enrollment process (access TIAA and/or Fidelity online enrollment instructions above).

The amount of the salary reduction shall be:

Once a contribution level is selected, the participant has the option to split the contributions between TIAA/CREF and Fidelity.

Contributions - New Hires as of September 4, 2002
(OS/PAT/EE Staff and non-AAUP Faculty)

Employees elect to have contributions withheld from their paycheck on a before-tax basis by completing a Salary Reduction Form or on an after-tax basis by completing a Salary Deduction Form. An application to TIAA/CREF or Fidelity indicating selected investment options must also be completed. Employees may start and stop contributing at any time.

The amount of the salary reduction shall be:
 

Additional Accounts/SRA's

Supplemental Contributions - Individuals may use the USNH Retirement Program to save additional money for retirement. The additional contribution may be made to your USNH retirement account or you may establish a Supplemental Retirement Account (SRA). The SRA may vary slightly in options available, i.e., an SRA from TIAA has a loan provision. Faculty and staff members who have chosen to make supplemental salary deferrals are also eligible to make salary deferrals in USNH’s 457(b) non-qualified deferred compensation plan. For more information about the plan, go to: http://usnh.edu/hr/benefits/retirement.html

It is important to note that your additional savings are not matched by the University System. As well, current Internal Revenue codes establish an upper limit on how much you may save on a before-tax basis. To view or make changes to your USNH Retirement Plan go to MyUSNHBenefits (USNH online benefits enrollment system).

Vesting

Contributions are vested, i.e., belong to the participant for purposes of transfer, cash-out or investment continuation upon termination or retirement, after 36 calendar months (3 years) of participation. For flex-year employees, years of participation in the retirement plan pertain to calendar months of participation.

Payout Options

Both TIAA-CREF and Fidelity offer a variety of payout options. You can receive payment monthly, in a lump sum, or a combination of both options. Also, by using annuity products available through either company, you can even guarantee all or a portion of your retirement income for as long as you live. The material you receive from TIAA-CREF and Fidelity discusses these options in detail.

Retiring from the University

Definition of Retiree: There are three types of retiree status. For all three types, the former faculty or staff member must have served in a status position for a period equal to ten or more years of service at the time of retirement or departure from USNH active service status.

1. Retiree (Medical Benefits) - A former faculty or staff member hired prior to 7/1/94 who has reached at least age 62 and has ten or more years of full-time service and at least ten years of participation in a USNH sponsored retirement plan and who chose the retiree medical coverage option instead of the additional retirement contribution (ARC).



2. Retiree (ARC) - A faculty or staff member with the Additional Retirement Contribution Plan (ARC), either by choice or by beginning employment within USNH on or after 7/1/94, and who has reached at least age 62.



3. Retiree (Cooperative Extension) - A former faculty or staff member within Cooperative Extension who meets the requirement under the Civil Service Retirement System.

Retiring at Age 65 or Later (definition #1 above)

Retiree Coverage

Medical coverage - A faculty or staff member who retires at age 65 or older, and had selected the University System's Medicare Complementary Plan (MCP), will be transitioned into the MCP. The MCP will become the secondary insurer with Medicare as the primary insurer. The University's Retiree Medical Plan is designed to supplement Medicare coverage by providing additional inpatient hospital, physician, and outpatient benefits not covered by Medicare. USNH medical insurance ends the last day of the month prior to the retiree's 65th birthday.

Medicare begins the first day of the retiree's 65th birthday month. In order for the University's Medical Complementary Plan to go into effect, it is necessary to enroll in both Medicare Part A and Part B. All claims are submitted to Medicare first. There is a $30,000 lifetime limit on the MCP: limit of $10,000 on Major Medical (i.e., durable medical equipment, skilled nursing), and a limit of $25,000 for prescription drugs. If a retiree reaches the $30,000 limit, another $5,000 will be allotted.

Family Coverage - Spouse or domestic partner (as defined by USNH) and/or dependent coverage. If the faculty/staff member is covering a spouse or domestic partner under her/his medical plan who is age 65 or older, s/he will be transitioned to the USNH Medicare Complementary Plan.

If the faculty/staff member is covering a spouse, domestic partner under age 65 and/or dependents under her/his active employee medical plan, s/he will continue under that plan into the faculty/staff member's retirement. Dependents may remain under the plan until they no longer meet the plan's eligibility requirements. A spouse or domestic partner may remain under the plan until eligible for Medicare; normally the first [day] of the month the spouse or domestic partner attains age 65. At age 65, the spouse or domestic partner will be transitioned to the Medicare Complementary Plan. Effective January 1, 2006, retiree premium contributions to cover a spouse, domestic partner, and/or dependents will be the same as active employees up to a maximum period of three years. Contributions required to be paid by the retiree for coverage beyond three years will be fifty percent (50%) of the cost of the coverage until the dependent no longer meets the plan's eligibility requirements or the spouse or domestic partner is eligible for the Medicare Complementary Plan. Any faculty or staff member who retires on or before December 31, 2006, will not be subject to the increase in contribution rate but will continue to pay the normal active employee rates.

In the event the retiree covered by the MCP dies, the spouse or domestic partner may continue coverage for the rest of his or her life or until remarriage. In the event a spouse or domestic partner of a retiree covered by the MCP dies, the employee is not permitted to add a new spouse to the plan.

For faculty or staff who die prior to retirement. If a faculty or staff member who chose the Medicare Complementary Plan is over age 52, and has at least 10 years of service, and dies either while on active service or on approved retirement plan, his/her spouse or domestic partner is still eligible for the Medicare Complementary Plan unless made ineligible by remarriage or the establishment of a new same-sex domestic partnership.

Prescriptions - The prescription drug benefit program for retirees is made available through CAREMARK. A prescription card will be issued to the retiree for use at participating pharmacies. At the time of purchase the retiree, or spouse/domestic partner age 65 or over, will pay the pharmacy a 20% co-payment. The balance of the cost of the prescription will be billed to the University System; no further paperwork is required for the retiree or spouse/domestic partner. The prescription drug card allows for short-term medications, defined as a 30-day supply, with one additional refill up to 30 days. A mail-order service is available for maintenance drugs that are routinely prescribed for over 30 days or for continuous medication, such as for high blood pressure or high cholesterol, up to a 90-day supply, and for prescribed refills. There is a maximum lifetime benefit of $25,000 for prescription drugs.

Dental coverage may be purchased for up to 18 months following retirement through COBRA (Consolidated Omnibus Budget Reconciliation Act). This coverage may be continued on a monthly basis for up to 18 months for the retiree, his/her spouse or domestic partner, and dependent children. A complete packet of information regarding the options under COBRA including premium payment deadlines will be sent to the retiring employee's home address. COBRA rates are available on this HR web site under "Benefits".

Life insurances end on the effective date of retirement but may be converted from the employee's current USNH-offered group policies. The USNH Benefits Office will provide the retiree with a life insurance conversion application form. After completing the form and returning it to the insurance carrier, the retiring employee will receive coverage information.

Disability insurance coverage ends upon retirement.

Flexible Spending Account - Retirees who have an FSA have until March 31 of the year following the year of their retirement to submit claims for expenses incurred prior to the retirement date. The faculty or staff member's contributions to his or her FSA stop at the date of retirement.

Annual Leave / Earned Time - Staff members and fiscal year faculty who retire will be paid for the balance of accrued annual leave (30 day maximum) or Earned Time available as of the last day of work. When included in the last regular pay check, these supplemental earnings are taxed in combination with regular earnings according to the standard table withholding method. The resulting tax can range from 15% to 39.6% depending on the total amount of wages.

Tuition Waiver Benefits - A retired faculty or staff member is not eligible for the tuition waiver program for themselves, a spouse, domestic partner, or a dependent child after the date of retirement. Any tuition waiver in effect at the time of separation will be prorated based on the proportionate amount of time the staff member has worked in the fiscal year.

Special Note: Any resident of the State of New Hampshire who is 65 or older may enroll in credit courses offered by Keene State College, Plymouth State College, or the University of New Hampshire tuition-free. The faculty or staff member may, however, be required to pay certain fees and/or registration charges.

NOTE: All insurance coverage premiums and contributions are subject to change.

Retiring at Age 62 Through Age 65 (applies to definitions #1 and #2 above)

All faculty/staff members who meet the qualifications of a USNH definition of retiree (see section USY V.C.9.2 for definition), and wish to retire, may continue coverage per University System guidelines until they are eligible for Medicare coverage at age 65. Coverage may be continued whether or not the retiree had previously selected ARC or the Medicare Complementary Plan.

In order to maintain medical coverage per University System guidelines, effective 1/1/06, retiring faculty/staff members will pay the same premium contributions as active employees up to a maximum period of three years. Spouses, USNH defined domestic partners, and/or dependents of retirees eligible for coverage beyond the three years will contribute 50% of the cost of the coverage. An employee with the ARC plan has no option for USNH coverage, except for those subject to COBRA provisions after s/he is retired and eligible for Medicare; normally the first of the month in which the retiree attains age 65. An eligible faculty or staff member who retires on or before December 31, 2006, will not be subject to the increase in contribution but instead will pay the normal active employee rate of contribution.

Coverage for family members ends on the same date as coverage for an employee ends as described above.

Upon reaching age 65, retirees under definition #1 above will transfer to the Medicare Complementary Plan. Those under definition #2 above (ARC) may purchase/obtain other insurance coverage to supplement Medicare.

Dental coverage may be purchased for up to 18 months following retirement through COBRA (Consolidated Omnibus Budget Reconciliation Act). This coverage may be continued on a monthly basis for up to 18 months for the retiree, his/her spouse or domestic partner, and dependent children. A complete packet of information regarding the options under COBRA including premium payment deadlines will be sent to the retiring employee's home address. COBRA rates are available on this HR web site under "Benefits".

Life insurances end on the effective date of retirement but may be converted from the employee's current USNH-offered group policies. The USNH Benefits Office will provide the retiree with a life insurance conversion application form. After completing the form and returning it to the insurance carrier, the retiring employee will receive coverage information.

Disability insurance coverage ends upon retirement.

Flexible Spending Account - Retirees who have an FSA have until March 31 of the year following the year of their retirement to submit claims for expenses incurred prior to the retirement date. The faculty or staff member's contributions to his or her FSA stop at the date of retirement.

Annual Leave / Earned Time - Staff members and fiscal year faculty who retire will be paid for the balance of accrued annual leave (30 day maximum) or Earned Time available as of the last day of work. When included in your last regular pay check, these supplemental earnings are taxed in combination with regular earnings according to the standard table withholding method. The resulting tax can range from 15% to 39.6% depending on the total amount of wages. You may, however, elect to have these supplemental earnings taxed separately at the IRS Supplemental Tax Rate of 28%. To obtain assistance calculating the specific amount you will be taxed, contact the UNH Payroll Office at 862-1400. The UNH Payroll Office cannot provide tax advice, therefore you may wish to consult with a financial tax advisor.

Tuition Waiver Benefits - A retired faculty or staff member is not eligible for the tuition waiver program for themselves, a spouse, domestic partner, or a dependent child after the date of retirement. Any tuition waiver in effect at the time of separation will be prorated based on the proportionate amount of time the staff member has worked in the fiscal year.

Special Note: Any resident of the State of New Hampshire who is 65 or older may enroll in credit courses offered by Keene State College, Plymouth State College, or the University of New Hampshire tuition-free. The faculty or staff member may, however, be required to pay certain fees and/or registration charges.

ARC Retirement (definition #2 above)

Faculty and staff members with the Additional Retirement Contribution (ARC) option will receive the University's minimum guaranteed payment per ARC guidelines.

See immediately above regarding benefits such as dental coverage, tuition benefit, etc.

Other benefits offered to retirees of UNH

• Access to the Library and join the Friends of the Library
• Receive announcements of:

  Celebrity Series events
  Theatre & Dance Department events
  Art Gallery Exhibits and Receptions
  

• Retired faculty emeritus and Extension Educators are offered a non-expiring UNH ID card and parking permit

Contact The Following Before Your Retirement Date:

• Notify the following departments in writing prior to your retirement date: your department, campus Human Resources, and the USNH Benefits Office. Faculty and PAT staff are expected to provide a minimum of 120 days, and Operating Staff are expected to provide a minimum of 60 days written notice.



• Social Security Administration:

  To obtain a projection of Social Security benefits
  
  To apply for Social Security payments
  
  To enroll in Medicare A & B, if you are age 65 or older. If you plan to work past age 65, you should apply for Medicare Part A when you turn 65. You should apply for Medicare Part B when you actually retire. You must be enrolled in both Medicare Parts A and B to be eligible for full coverage under this Medicare Supplemental Plan. The USNH Benefits Office will need a copy of your Medicare card for coverage in the retiree medical plan
  
  To obtain Medicare information

• Contact TIAA/CREF and/or Fidelity Investments directly to obtain retirement calculations and income options at least three months prior to the projected retirement date.

  TIAA/CREF: 1-866-904-7801
  Fidelity: 1-800-343-0860
  
  

• Participants in the Operating Staff Retirement Program should contact the USNH Benefits Office for benefit calculations at 862-0930.

Get from the UNH Office of Human Resources:

• Further details on USNH Complementary Medical Plan
• Operating Staff Retirement Plan options if eligible
• Tax-deferral information for retirement contributions during last year of work
• Be sure you and your spouse/dependents have medical coverage through USNH in the year you retire. Medical coverage may be added each fall during the "open enrollment" period.

Checklist of THINGS TO DO in preparation for retirement

• Define a budget. Determine your fixed expenses, how much money you will need to maintain your desired lifestyle and what sources of income you have.
• Confirm other sources of retirement income such as prior employer-provided retirement plan, IRA's, Supplemental Retirement Accounts (SRA's).
• Consult a financial planner or use the resources available through TIAA/CREF and/or Fidelity. Get a projection of retirement payment options.
• Plan your estate. Consider a will, establishing trusts or giving gifts. Consult a financial planner or your attorney to determine what is best for your situation. Update your beneficiary designations.
• Where will you live? You may consider downsizing, moving to another region of the country, a retirement community, or senior housing.
• Consider current and future medical needs. Living wills, healthcare proxy, and long term care insurance are options. Put your medical records in order.
• Talk to your family and loved ones about your wishes for final arrangements, tax records, safe-deposit boxes, bank accounts, debts, emergency funds, and other records.