Continuation of Benefits Into Retirement

Post-retirement insurance and health care coverage information

Group Term Life Insurance

  • If you were employed on or before April 30, 1954, you may continue all of your insurance up to a maximum of $10,000 provided you make the required contributions.
  • If you were employed on or after May 1, 1954, you may continue a maximum of $5,000 at no cost to you.  You may convert the amount, by which your term life insurance is reduced at retirement, to an individual policy.
  • Contact an agent of the Prudential Insurance Company.

Health Care

If you were hired BEFORE January 1, 2010:

You may continue health care benefits (for dental and/or vision see below) or if over age 65, the University Medicare Supplement for yourself and your eligible dependents. You will be billed by the University on a semiannual basis when contributions are applicable. Healthcare costs are billed at the regular rate for the current medical plan.

  • Maintenance Prescription Drug Plan will continue for retirees if the retiree meets the requirements to continue benefits.

    The following coverages terminate when an individual retires:
  • Dental (unless picked up under COBRA for maximum coverage period of 18 months, for which full rates will be charged)
  • Vision (maybe carried under COBRA for a maximum coverage period of 18 months, for which full rates will be charged)
  • VADD (Voluntary Accidental Death and Dismemberment Coverage)

During the last working month, make an appointment with Employee Benefits, to go over your health care benefits, beneficiaries, etc. Contact Employee Benefits Office, Box 30 Rider Building, University Park, 814/865-1473. 

If you were hired AFTER January 1, 2010:

The University will contribute funds each month on your behalf to a retirement healthcare savings plan to help you to pay for qualified medical and health-related expenses in retirement, including the purchase of a health insurance policy.

You will be eligible to access your Penn State Retirement Savings Account when you are no longer actively employed at Penn State AND have:

  • Completed 25 years of continuous full-time service and are age 60 or older
  • Completed a minimum of 15 years of continuous full-time service and are age 65 or older

Responsibility of Individuals as They reach Age Sixty-Five

Federal requirements require that the University provide active employees and/or their spouses age 65 and over the opportunity to elect either University coverage or Medicare as primary insurer.

It is your responsibility to notify the Employee Benefits Division when you or an eligible dependent reach age sixty-five so that you may make your election. This office will assist you in making an informed decision relative to your personal situation.

To enroll in Medicare you should contact the local Social Security office three months before reaching your sixty-fifth birthday When you retire and are eligible to continue benefits into retirement, Medicare will be the primary insurer with the University Medicare Supplement paying some of the bills not paid by Medicare.