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U.Va. Human Resources
Faculty Pre-Retirement Guide
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The Board of Visitors of the University of Virginia, in agreement with the Commonwealth of Virginia, recognizes that faculty members may retire at any time.

If you are a full-time faculty member who wants to retire, you must request that your department enter a faculty retirement in Oracle. You should also follow the steps below to insure the timely receipt of your benefits:
  • At least four to six months prior to your retirement, contact the company(ies) with which you have your retirement plan and ask for information about your retirement options and the forms you need to complete.
  • Approximately three months prior to your retirement, contact the Benefits Division in University Human Resources at (434) 924-4392 for an appointment to discuss health insurance and other retirement benefits.
  • At least three months prior to your retirement, telephone or write the local Social Security Office to apply for payments, if desired. If you or a dependent are age 65 or older, you must also apply for Medicare to begin as of the retirement date.
The benefits available for you at retirement include TIAA/CREF or Fidelity benefits, Social Security and Medicare, health care insurance, and, in many cases, TIAA Life Insurance, and distribution from tax-deferred savings. On the following pages is general information about all of those benefits, except Social Security and Medicare, and information about the taxability of retirement income. Also provided is an explanation of health care insurance available to you, both during employment and after retirement.

Faculty Retirement Plan

Because most of our faculty who are near retirement age participate in TIAA/CREF, the information provided below is specific to TIAA/CREF. However, if you are retiring under Fidelity, please contact that company at (800) 343-0860.
You may defer receipt of retirement benefits resulting from UVA employment until the later of:
  • April 1 of the calendar year following the year in which you turn age 70-1/2; or
  • April 1 following the year in which you retire.
If you defer retirement benefits, you are not eligible to enroll in the retiree health insurance program.

Taxation of Retirement Benefits

Federal Tax
All retirement contributions paid by the University are tax-deferred. In addition, the employee contributions (5% of salary) required by the University until October, 1983 were tax-sheltered as of 1961. Around the time of your retirement, TIAA/CREF will determine the portion of your income that is subject to federal tax. If necessary, TIAA may ask you to complete an "Investment in Contract" worksheet. If you receive the worksheet from TIAA, send a copy of it to any employer (including the University of Virginia) who provided a TIAA/CREF plan for you. Then, at the end of each tax year, TIAA will send you a W-2 or similar document as a report of income subject to federal tax.

State Tax
If you plan to reside in the Commonwealth of Virginia during retirement, you must file a state withholding form indicating how you wish to have state tax withheld.

How to Apply
At the time you enrolled in TIAA/CREF, you indicated an age at which your distribution should begin. Approximately six months before you reach that age, TIAA/CREF will contact you to determine if you wish to start you retirement income. You should indicate that you want to start your distribution at that time or specify a later date.
If you want retirement illustrations prior to hearing from TIAA/CREF, you may call (800) 842-2776. You also may ask TIAA to prepare hypothetical illustrations for transferring part or all of your CREF accumulation to your TIAA account.
Faculty members investing with Fidelity need to contact Fidelity at (800) 343-0860 to discuss the distribution options available.

Health Care Insurance for Active Employees Age 65 and Over
Health care insurance for active employees age 65 and over (and their spouses) is identical to that of employees under age 65. Because Medicare is the secondary provider while you remain employed, you may enroll in Medicare Part A just before your 65th birthday, but may defer Medicare Part B until you retire. If you enroll in Medicare Part B just before you retire, there will be no penalty.
Eligibility for Health Care Insurance After Retirement
The Commonwealth of Virginia provides a health insurance group for retirees who receive VRS, FRP or MCRP retirement income. The Benefits Division will assist you with the health insurance application if you elect coverage for yourself and dependents at the time you retire. Your spouse will be able to continue coverage for the rest of his or her life in the event of your death if both of you elect coverage when you retire and you continue coverage in the state retiree insurance program until your death.
You may choose to receive coupons and pay your health insurance premiums by check each month or you may authorize a monthly bank draft from your checking or savings account to pay your premiums if the administrator of your insurance plan offers this option.
If you or your spouse or dependents are ineligible for Medicare when you retire, those ineligible for Medicare will be covered by the UVa Health Plan. Dental and/or vision options are available in addition to the basic health coverage.
If you or your spouse or dependents are eligible for Medicare, the state insurance program is available to those who are Medicare-eligible as secondary coverage after Medicare. The Commonwealth group currently offers one Medicare-supplement plan with a dental/vision option.
This offering is subject to change each January 1.

Health Credit for Retirees
The Commonwealth of Virginia provides a partial subsidy to cover the health insurance cost. The subsidy is a tax-free credit on the monthly premium and is available for retirees with 15 or more years of service. The monthly credit is calculated by multiplying $4.00 by the number of years of service not to exceed 30 years. The minimum monthly credit is $60.00 and the maximum monthly credit is $120.00. UVA will calculate your health credit amount when you retire and send appropriate paperwork to the Virginia Retirement System since this organization distributes the monthly credit to eligible retirees. If you waive your right to enroll in the state plan, you must complete the VRS-45 form to receive your monthly health credit. This form must be completed every time your premium or health insurance carrier changes.

How to Enroll in Retiree Health Insurance
During a pre-retirement appointment with a representative of the Benefits Division, you and your spouse may complete applications for the retirees' group. If you do not elect health insurance within 31 days of retiring, you waive all future rights to the coverage. Detailed information about the health insurance options is available from the Benefits Division.

How to Change Retiree Health Insurance Coverage
Retirees in the state insurance program who need to make any health coverage changes should contact the Benefits Division of University Human Resources. These changes include additions, deletions, address changes, and Medicare eligibility. Some changes can only be accepted and processed at specific times during the year. Therefore, it is imperative that you contact the University Benefits Division as soon as the event causing the change occurs.

Other Benefits

TIAA Life Insurance
At the present time, the University provides $5,000 in life insurance to eligible retired faculty who have participated in TIAA Life Insurance. Eligible faculty are those who retire at age 55 or older with five or more years of service provided that the sum of age and service is greater than or equal to 70. You may verify your insurance and beneficiary at the time you retire. The TIAA Life Insurance Plan also allows you, at retirement, to convert part or all of the basic and supplemental insurance you have as an active employee.
Tax-Deferred Savings
If you have been participating in Fidelity, TIAA/CREF, Vanguard, or Security Benefit tax-deferred savings plans or the Commonwealth's 457 tax-deferred savings plan, you can elect to receive income at the time of retirement. Or, you may defer payments until April 1 of the calendar year following the year in which you attain age 70 ½ or following the year in which you retire, whichever is later. You may make arrangements by contacting the company(ies) directly at the telephone numbers shown below:

Fidelity Investments(800) 343-0860
Security Benefit(800) 888-2461
TIAA/CREF(800) 842-2733
Vanguard Group(800) 523-1188
Great-West (457 Plan)(866) 226-6682


"Perks" For Retired Faculty

Athletics - Retired faculty may purchase season tickets for football and basketball based on the availability of tickets at the same rate as currently employed faculty. Retired faculty who had more than five years of service may purchase a pass for use of athletic facilities. (Intramural-Recreational Sports at (434) 924-3791; Ticket Information at (434) 924-8821.)
Birdwood - Any full-time faculty member who retires is eligible to continue receiving the faculty rate on membership. Reduced rates are available for retirees on Monday through Thursday. Proof of full-time faculty status may be required if information is not on file at Birdwood ((434) 293-4653).
Bookstore - A 10% discount on books is available to retired faculty. The bookstore prefers that retired faculty present an ID card ((434) 924-3721).
Colonnade Club - Retired faculty who were active members for at least ten consecutive years become "honorary" members and receive lifetime membership and all privileges at no cost. Other retired faculty may retain membership at full cost ((434) 924-3532).
Course Offerings - Any member of the community may take courses. Information concerning tuition waiver for senior citizens (60 years or older) is available from the Division of Continuing Education ((434) 982-5313).
Library - Retired faculty who can demonstrate that they are residents of Virginia may be cardholders at no cost.
Parking - Emeritus faculty receive gold permits at no charge. You must provide Parking and Transportation with a copy of the letter indicating election to Emeritus status. Retired staff who are 65 years or older may purchase blue stickers at a reduced annual cost ((434) 924-7231).
Research/Education Travel Program - Emeritus faculty may apply for limited travel grants each year through the office of the Associate Provost for Research ((434) 924-3606).
Inside UVA - This weekly newsletter published for University faculty and staff will be sent to your home address with the payment of an annual fee of $10.00 ((434) 924-3801).
Faculty I.D. Cards - I.D. cards may be obtained at the Card Office in Observatory Hill Dinning Hall, Lower Level, 8:00 am - 5:00 pm, Monday through Friday at other than registration times. Those currently holding an I.D. card may have it updated. Only those retired faculty listed in the University Directory can be served ((434) 924-4508).
Retired Faculty Association - All retired faculty and spouses are eligible for membership (minimal dues). This organization facilitates communication with the administration and schedules special programs ((434) 924-3787).
University Foreign Travel Opportunities - Retired faculty may participate in this program sponsored by University Human Resources. Usually one trip is planned in the Spring and one in the Fall ((434) 924-4381).
Special Arrangements - Some departments and schools may make arrangements to satisfy specific needs of retired faculty. Interested retirees should inquire of the appropriate dean or department head.

For more detailed information, contact the Benefits Office at (434) 924-4392 or email benefits@virginia.edu.