Note: UVM retains the right to amend, alter, or terminate post-retirement benefits at any time for prospective and existing retirees.

Medical Insurance

If you retire from UVM when you are at least age 55 with ten continuous years of benefit eligible employment, you are eligible for the same preferred medical plans( i.e., not the HMO) as are provided to active employees until you qualify for Medicare. Once eligible for Medicare, you qualify for Blue Cross Blue Shield’s Medicare Carve Out Plan. Under the Medicare Carve Out Plan, you and your covered spouse must enroll in Medicare Part B and pay the premiums. You will not be reimbursed for the cost of Medicare Part B. Medicare pays its benefits first, and unpaid balances are covered up to the Medicare Carve Out Plan limits. For a full description, contact the Benefits Office at 656-3322.

The University provides coverage to the retiree at no cost. The retiree must pay dependent premiums consistent with those paid by active employees based on an adjusted retirement base salary defined as 75% of the average final three years base salary. If coverage or premium requirements change for active employees, they will also change for retirees.

The spouse premium ends when the spouse qualifies for Medicare. Once the spouse qualifies, the Medicare Carve Out is free. The employee and/or dependents must be enrolled on the date of retirement to be covered by this benefit. Otherwise, they must wait until the next open enrollment.

Coverage and the premium paid is the same as for active employees under the Base Plan Option. If active employees’ premium requirements change, retirees’ premiums will also change. You must be insured at the time of retirement or wait until open enrollment to qualify. The High Option Plan is not available to retirees, except that if elected prior to retirement, it will be continued through December 31^st of that year.

Post-retirement life insurance benefits will decrease as you grow older.

When you retire from the University after age 55 with at least 10 years of benefits eligible service, your life insurance will be continued based on your life insurance coverage on your retirement date as follows, subject to a minimum of $6,000 and a maximum of $50,000:

Option Elected Coverage

$6,000 $6,000

$50,000 $50,000

2 x salary 2 x salary (max $50,000)

3-7 x salary 2 x salary (max $50,000)

Coverage is fully paid by UVM, reduced by 50% at age 65, and terminates at age 70. If you retire after age 70, coverage ends at retirement. Dependent coverage ends on retirement.

Retirees and their dependents will retain the same tuition remission benefits as active employees.