Human Resources Policies

HR54 Retirement Qualifications and Retirement/Posthumous Benefits

Policy Status

Active

Subject Matter Expert

Jill Musser, 814-865-1473, jmm60@psu.edu

Policy Steward

Vice President for Human Resources

POLICY'S INITIAL DATE: May 1, 1954

THIS VERSION EFFECTIVE: September 4, 2025

Contents:

Purpose
Penn State Retiree Definition
Medical Eligibility and Coverage for Retirees Hired Prior to January 2010
Penn State Retirement Healthcare Savings Plan (RHSP) for Retirees Whose Most Recent Full-Time Employment Began on or After January 1, 2010
Benefits That Terminate at Retirement
Dependent Protection After the Death of a Retiree or an Active Employee
Cross References

PURPOSE:

To define Penn State retiree status for full-time employees and the associated benefits. Employees represented by a union should reference their appropriate Collective Bargaining Agreement.

PENN STATE RETIREE DEFINITION:

A Penn State retiree is an employee who is no longer actively employed, and at the time of retirement was a full-time employee who met one of the following criteria when leaving University employment:

If most recent full-time employment began prior to January 2010:
1. Completed at least 15 years of continuous full-time service and are age 60 or older; OR
2. Completed at least 25 years of full-time service at any age.
If most recent full-time employment began on or after January 1, 2010:
1. Completed at least 25 years of continuous full-time service and are age 60 or older; OR
2. Completed at least 15 years of continuous full-time service and are age 65 or older.

Note: Time served in a Postdoctoral appointment will not be applied towards retirement qualifications or calculations.

MEDICAL ELIGIBILITY AND COVERAGE FOR RETIREES HIRED PRIOR TO JANUARY 2010:

Full-time employees hired prior to January 2010 may continue to be covered under the health plan benefits available to retired employees and their eligible dependents if, at retirement, they meet the Penn State Retiree Definition and the employee meets one of the following conditions:

Completed at least 15 years of continuous full-time service, are age 60 or older, and were enrolled in a University-sponsored medical plan for 15 continuous years immediately preceding retirement*; OR
Completed at least 25 years of full-time service at any age and were enrolled in a University-sponsored medical plan for 10 years immediately preceding retirement*.

*Enrolled either as the primary subscriber or via spouse's PSU medical plan.

For more information on health plan benefits, please visit Penn State Benefit's Guide to Retirement.

RETIREMENT HEALTHCARE SAVINGS PLAN (RHSP) FOR RETIREES WHOSE MOST RECENT FULL-TIME EMPLOYMENT BEGAN ON OR AFTER JANUARY 1, 2010:

Full-time employees hired on or after January 1, 2010 will be automatically enrolled in the Retirement Healthcare Savings Plan (RHSP).

The University will contribute a fixed monthly amount into this account which can be used to purchase health insurance and for other qualified medical expenses for eligible retirees and/or dependents.

Full-time employees whose most recent full-time employment began on or after January 1, 2010, are eligible to access the RHSP account when they are no longer actively employed and at the time of their retirement have met one of the following criteria:

Completed at least 25 years of continuous full-time service and are age 60 or older; OR
Completed at least a minimum of 15 years of continuous full-time service and are age 65 or older.

For more information on the Retirement Healthcare Savings Plan (RHSP) benefits, please visit Penn State Benefit's Guide to Retirement.

BENEFITS THAT TERMINATE AT RETIREMENT:

Coverage under Penn State group dental, vision, accidental death & dismemberment (AD&D), short-term disability, and life insurance plans terminate at retirement.

Retirees may elect to continue dental and/or vision plans for up to 18 months under COBRA provisions. Retirees will receive COBRA information from our COBRA processing partner, with instructions on enrollment and payment of premiums.

Accidental death & dismemberment (AD&D), long-term disability, and life insurance plans may be converted to individual policies within 31 days of retirement by contacting the appropriate benefits vendor.

DEPENDENT PROTECTION AFTER THE DEATH OF A RETIREE OR AN ACTIVE EMPLOYEE

Upon the death of an active employee who meets eligibility for retiree status outlined above as of the date of death, or upon the death of a current Penn State retiree, eligible surviving dependents may continue coverage consistent with the Active Employee Summary Plan Document or the Retirement Summary Plan Document.

Upon the death of an active employee who does not meet eligibility for retiree status outlined above as of the date of death, eligible surviving dependents will be made an offer of COBRA coverage consistent with the Active Employee Summary Plan Document.