This week the University of Vermont initiated a Voluntary Retirement Agreement for qualifying employees. This agreement provides employees aged 62 or older who meet the service requirements for post-retirement medical benefits prior to December 31, 2025, the option to retire with $15,000 for post-retirement health care costs.
Key Details
Employees who enter into this agreement will receive a one-time deposit of $15,000 in a Retirement Health Savings Plan account. Like flexible spending accounts, these accounts help retirees pay for health-care related expenses, including insurance premiums and copays, medical equipment, and transportation to medical services, any time after retirement.
Eligibility
- Employees who are at least 62 years old and meet the service requirements for post-retirement medical benefits before their selected retirement date.
- Employees must request participation in the program by September 1, 2025, and designate a retirement date prior to December 31, 2025.
- Employees who provided notice of their intent to retire prior to April 21, 2025 are not eligible to participate in this program.
Incentive
- $15,000 one-time contribution to a Retirement Health Savings Plan account, in addition to your standard post-retirement benefits.
- Employees under the age of 65 using UVM’s medical insurance will have an individual premium contribution of 50-60% upon retiring. Additionally, most employees will experience a reduction in their premium contribution when they turn 65.
Resources
- Employees can find their post-retirement medical benefits in their collective bargaining agreements, all available on the Employee Handbook & Contracts page.
- Non-union faculty and staff can also review the post-retirement medical benefits (PDF) to learn more about their eligibility status.
- If you are eligible, please review the Incentive Procedures and Guidelines (PDF) and the Election Form (PDF).
If you are considering retirement soon, this option may provide added financial flexibility and peace of mind. If you have questions or would like to discuss this opportunity further, please contact hrinfo@uvm.edu or (802) 656-3150 to schedule an appointment with a Benefit Advisor to learn more about your eligibility.