Understanding ONU Retirement

Qualifications and Benefits

RETIREMENT QUALIFICATIONS: A full-time employee of the University, who gives at least a 2-week notice, and meets one of the following combinations of years of services and age,canbe considered a retiree:

Type of Retirement / Years of continuous service / Minimum age
Normal Retirement / 10 years / 65
Early Retirement / 15 years / 62
Early Retirement / 20 years / 55
Early Retirement / 30 years / Any age

NOTE:Any voluntary termination of employment that does not meet the above criteria or notification requirements will be considered a resignation.

NOTE: 30 years of service is an automatic qualifier for retirement and full benefits detailed below.

BENEFITS UPONRETIREMENT:

  • Medical Insurance: Employees hired full-time prior to August 1, 2001 who retire from the University, may continue to participate in the University’s medical insurance, along with their dependents. The following indicates the plan and premium options at each age.

Age / Plan Available / Plan Premium
Below age 62 / ONU Active Benefit Plan / Full cost of monthly premium for retiree and eligible dependents. Payable to the Controller’s Office.
Ages 62 through 65 / ONU Active Benefit Plan / No cost for retiree. Full cost of premium due to Controller’s Office for eligible dependents.
Age 65 (effective the first of the month when you turn 65) / Medicare primary with retiree-chosen Medicare supplement and Rx plan / HRA is set up by the University to reimburse the retiree’s premium for the supplemental plan. Eligible dependents under age 65 can remain on the plan at full cost.Payable to the Controller’s Office

NOTE:If hired after 8/1/2001, no additional University coverage shall be provided upon retirement. Eligibleretirees will be eligible to elect COBRA. For retirees and spouses at or over the age of 65, the University offers a retiree service to assist with the selection of Medicare supplementalplans and on-going claims and coverage assistance. The covered individual will be responsible for all associated premiums.

  • Faculty and Administrator retiree incentive payment (severance): Faculty and Administrative staffmay qualify for severance payments upon retirementif they meet all of the following qualifications:
  • Must give a 3-year notice of retirement, in writing, submitted to the Office of Human Resources. Notice must be submitted between 36-42 months prior to desired retirement date.
  • Must provide this notification no later than September 1st following the 30th anniversary of their continuous service.
  • Must execute a waiver and release of claim.
  • Must continue to be employed, full-time, through and including the notice period.
  • Must terminate at the end of the notice period (no extensions).

If all of the above criteria are met, the incentive payment will be equal to 20% of your current annual salary for each year of service over 15 years. However, the payment will never be greater than 100% of employee’s annual salary upon retirement. This payment will be made in one lump sum payment through payroll. For more detailed information, please review the handbook policy or plan documents in the Office of Human Resources.

  • Staff accrued vacation payout: For all retiring administrative and support staff, accrued vacationtime will be paid out upon retirement at the rate of pay earned at retirement.
  • Support Staff sick leave payout: In addition to vacation payout, support staff members may receive accrued sick time payout to the lessor of their available sick leave accrual upon retirement, up to 30-days*.

* Grandfathered support staff members who are eligible for up to 90-days of sick payout are documented as such in their personnel file.

  • Other miscellaneous benefits for all retirees:
  • General access to campus and campus events
  • Retention of ONU ID card and privileges of the card
  • King Horn Sports center access and game privileges
  • Access to ONU libraries and databases
  • Faculty/Staff discounts at ONU bookstore
  • ONU parking permit
  • Tuition remission and tuition exchange for dependents
  • Ability to audit courses
  • Access to ONU computer account
  • Other faculty benefits (as outlined in the Faculty Handbook):
  • Emeritus/Emerita status
  • Office space (if/when available)
  • Mailbox in department/McIntosh Center
  • Access to Freed Center and normal faculty privileges of faculty prices for tickets
  • Access to courses at senior citizen rate
  • Access to teaching (one course per term) on an as-needed basis by the University
  • Invitations to campus events (e.g. dinners, ceremonies, Honors Day, etc.)
  • Participation in procession for Commencement
  • Participation in chapel services; occasional wedding or funeral usage of chapel
  • Copies of Northern Review as desired; copies of selected campus publications

STEPS TO PREPARE FOR YOUR RETIREMENT

When should I start planning? What do I need to do? Below is a guide to help you along the way.

3.5 to 4
years prior to your potential retirement date / Contact HR to:
  • Arrange a meeting with a TIAA-CREF representative to discuss your retirementincome readiness. Consider adjusting/increasing your retirement plan contributions to ensure you are financially ready when the time comes.
  • Determine when you can/wish to retire.
  • Determine if you are eligible for an incentive payment (severance) and if you intend to collect it. This will determine when you need to provide notice.

3 years prior to retirement /
  • If you wish to qualify for and collect an incentive payment, be sure to turn in your 3-year notice in a timely fashion to the Office of Human Resources. If you give your retirement notice revocation requires approval; canceling the notice will eliminate your eligibility for future incentive payments.

6 months prior to retirement /
  • If you will be 65 or over at the time of retirement, contact Social Security to ensure that you have enrolled in your Medicare Part A and Part B coverage.
  • Contact HR and arrange another meeting with a TIAA-CREF representative to discuss distribution options and your retirement income plan.

3 months prior to retirement /
  • Set up a meeting with the Office of Human Resources to discuss your departure, benefit coverage, final pay date, and any preliminary severance figures. Discuss your option of changing federal tax-exemptions on your final check to assist with the high tax rate created by a lump-sum payment.

1 month prior to retirement / Work with HR on the following items:
  • If 65 or over, conduct an enrollment call with our Medicare supplement retiree service provider (OneExchange – 1-888-724-3812).
  • If under the age of 65, or if you have dependents under 65 who need coverage, complete proper forms and arrange payment with the Controller’s Office for medical premiums.

RELAX AND ENJOY YOUR RETIREMENT

Please contact the Office of Human Resources with questions about planning for your retirement.