Your Benefits in Retirement

If you are enrolled in the following plans and are eligible for benefits as U-M retiree, coverage for you and your eligible dependents enrolled at the time of your retirement will automatically continue as long as you pay any applicable premiums: health plan (including prescription drug coverage), dental plan, vision plan, legal services plan, and life insurance plan. Your participation in the business travel accident insurance, long-term disability and dependent life insurance plans ends upon retirement. If you participate in a health care flexible spending account, expenses incurred prior to the date of retirement are eligible to be reimbursed, unless coverage is continued under COBRA.  If you participate in a dependent care flexible spending account, expenses are reimbursed up to the balance in the account at the time of retirement for expenses incurred through the end of the plan year of participation.

Planning for Health Care in Retirement

This two-minute video gives an overview of what you may want to consider as you plan for health care in retirement.

Transitioning to Retiree Benefits

When you retire, your U-M employee benefits end on the first of the month following your retirement date. Retiree benefits for which you are eligible start on the 1st of the month following your retirement date. Exception: if you retire on the 1st of the month, your employee benefits end and your retiree benefit start on your retirement date.

Retirees participate in annual Open Enrollment to make benefits changes, with changes effective January 1. Plan costs may vary each year.

Payout of Unused Vacation or Paid Time Off

Unused accrual of vacation or paid time off (PTO) will be paid to you shortly after retirement.  Once you have submitted your final time sheet and your department approves it, a check will be issued to you typically within a few weeks after you have retired.  This payment is not eligible for contributions for the Basic Retirement Plan although individuals subject to a collective bargaining agreement should refer to the terms of their contract.

Covering Your Dependents in Retirement

Only eligible dependents covered on your benefits at the time you retire may continue to be covered during retirement. Covered dependent children may remain on your benefits up to the end of the month in which they turn 26. No one can be added to your U-M benefits after you retire.


U-M provides Medicare Advantage plans to Medicare-eligible retirees and their Medicare-eligible dependents. Therefore, enrollment in Medicare parts A and B are required to continue U-M health plans. 

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