When you are RETIRING from the University of Illinois System, please work with your home department to complete the retirement separation process.
If you do not annuitize and instead take a lump sum payment from SURS, then your coverage will terminate at midnight on the last day of active employment.
If you annuitize with SURS, you must follow the guidelines below as mandated by Central Management Services (CMS) to prevent a gap in coverage. Following these guidelines will ensure your employer coverage remains active until SURS Annuitant coverage begins, which is the first of the following month.
- Civil Service employees – You must actively work through at least the 16th day of the month prior to your retirement date in order to transition with no break in coverage.
- Academic employees - You must actively work through at least the 15th day of the month prior to your retirement date in order to transition with no break in coverage.
Employees retiring are NOT required to work on their last day if the last day is a scheduled holiday or weekend.
NOTE: Employees separating but not retiring, see Separation Preparation for information on coverage end date.
View Vacation and Sick Leave Payout information to learn how to tax defer a portion of any payout you may receive.
Make a selection for more information:
Health, Dental, and Vision Insurance
Coverage continues and premiums may be paid by the State and/or member. If you are age 65 or older at retirement, contact the Social Security office 60 days prior to retirement to ensure proper coverage. For further information, please see Medicare Information.
Basic Life Insurance
If retiring before age 60, life insurance continues at 100% of salary until age 60. If retiring at age 60 or later, life coverage immediately decreases to $5,000. Premiums are paid by the State. Amount of coverage lost in excess of $5,000 can be converted to an individual plan directly with the insurer.
Optional Life Insurance
Coverage up to four times the basic life amount above. If retired and age 60 or older, maximum optional is $20,000. Premiums are deducted from your monthly retirement annuity. Any optional coverage lost at retirement or age 60 can be converted along with basic amount lost above, or retained as term coverage on a portable basis. Contact University Payroll & Benefits (UPB) for rate information.
Optional Accidental Death & Dismemberment Insurance
Coverage continues at the basic level plus any optional life. Maximum if retired and age 60 is $25,000. Premiums are deducted from your monthly retirement annuity.
Medical Care Assistance Plan (MCAP)
You may continue your MCAP account by completing the MCAP Continuation Election Form. Send your completed form to University Payroll & Benefits (UPB) 45 days prior to your retirement. Contact UPB with any questions.
State Deferred Compensation 457 Plan
You are the owner of the assets in your account. The Plan offers a number of choices for distribution. For a detailed description of these choices and associated limitations, consult the Central Management Services (CMS) booklet Make the Decision That's Best for You.
Health and Vision Insurance
Coverage continues with no change (includes children up to but not including age 26). Premiums are deducted from your monthly retirement annuity. Vision insurance is provided at no cost. See CMS Dependent Coverage information.
Dental Insurance
Coverage continues and premiums are deducted from your monthly retirement annuity.
Optional Spouse Life Insurance
Coverage continues at the amount of $10,000; however, coverage reduces to $5,000 when the spouse turns age 60. Premiums are deducted from your monthly retirement annuity.
Optional Child Life Insurance
Coverage continues for children in all categories, except the Other category, in the amount of $10,000. Premiums are deducted from your monthly retirement annuity.
Employee and Dependent Term Life Insurance (Closed Plan)
Coverage may continue on same three-year term basis to age 70; premium remains the same as that for an active employee plus a $15 annual billing fee. Children may be covered to age 25 regardless of status as your dependent. You may convert to a whole life insurance policy immediately upon ending employment, or when your individual term life policy ends at age 70. Premiums are billed quarterly by the company; the first bill should be received within three months of retirement.
Employee and Dependents Accidental Death & Dismemberment Insurance
Coverage may continue up to $100,000 for one year following retirement. You must pay premiums prior to retirement. Please contact University Payroll & Benefits (UPB) to continue coverage and for information regarding the premium and payment.
Employee Long Term Disability
Coverage terminates at retirement.
Supplemental 403(b) Retirement Plan
Employee contributions stop at retirement. Withdrawals of pre-tax and Roth (after-tax) funds can be delayed until as late as age 73 when the IRS required minimum distribution must begin.
State Universities Retirement System (SURS)
SURS Deferred Compensation 457 Plan (DCP)
You are the owner of the assets in your account. The Plan offers a number of choices for distribution. For a detailed description of these choices and associated limitations, contact SURS Defined Contribution Center at 800-613-96543.