Life Events - Retiring from the University of Michigan

Checklist: When You Decide to Retire

Retiring from U-M: Overview

Planning for Retirement

Phased Retirement & Furlough

Your Service Date

Your Benefits as a U-M Retiree

Income in Retirement

More Information

Overview: Retiring from U-M

You may retire from U-M when you meet the requirements: 

  • A points system implemented on January 1, 2013 allows faculty and staff to retire when the sum of an individual’s age and years of continuous eligible service equals 76, with a 10-year minimum service requirement.
    • One point will be added to the eligibility requirements every two years beginning in 2015, until 2021 when 80 points will be required to retire.
    • Individuals who belong to a union or collective bargaining unit should check with the terms of the collective bargaining agreement to determine if the points system applies to them.
    • Click here to view a summary of the retiree benefits changes. (PDF)
  • Eligible part-time regular and supplemental faculty and staff (appointments of 50% - 79.9%) will accrue 0.8 years of credit toward retirement eligibility per full calendar year worked.
  • The university contribution for retiree health benefits received in retirement will be set by the year in which retirement occurs for faculty and staff with a service date prior to January 1, 2013.
  • Faculty and staff with a service date on or after January 1, 2013 will have a university contribution for retiree health benefits that will be a maximum of 68% for the retiree and 26% for the dependent portion.
  • The university contribution toward retiree health benefits for faculty and staff retiring on or after January 1, 2021 will be based on years of service.  This service requirement is in addition to the points system used to determine eligibility to retire.
  • The requirement that individuals with a service date on or after July 1, 1988 who retire under the age of 62 pay the full cost of all benefit plans through the month they reach age 62 remains in effect.

Frequently Asked Questions

When I retire, when do my U-M active employee benefits end? 
Active employee benefits end the 1st of the month following the retirement date, unless the date of retirement is 1st of the month. Benefits end on the date of retirement if the date of retirement is the 1st day of the month.

When do U-M retiree benefits start? 
Retiree benefits start the 1st of the following month unless the date of retirement is is 1st of the month, in which case benefits start on the 1st day of the month.

What do I need to do to continue benefits in retirement?
Coverage for most benefits in effect at the time of your retirement continues automatically as long as retiree premiums are paid within 30 days of the due date. Long-Term Disability, Dependent Group Life Insurance, and Flexible Spending Accounts end upon retirement. Retirees participate in annual Open Enrollment to make benefits changes, however they may not add new dependents. Only eligible dependents covered at the time of retirement who remain eligible may continue to be covered during retirement.

Click here for additional FAQs

Cost of Coverage

The amount of university and retiree contributions toward retiree benefit plans will vary based on your service date, age, retirement date, eligibility for Medicare, coverage level, and health plan selected.  View cost information on the Benefits Office website or call the SSC Contact Center for information. See Estimated Retirement Eligibility Date for your estimated university contribution amounts after retirement.

Looking for Financial Advice?

For financial advice as you approach retirement, you are encouraged to meet with investment professionals from TIAA-CREF and/or Fidelity, or with your financial planner. The Benefits Office cannot provide financial advice.

Estimated Retirement Eligibility Date

View your estimated retirement eligibility date and university contribution amounts by viewing the Estimated Retirement Eligibility Date through Self Service on Wolverine Access. Benefits associated with full retirement include coverage under a U-M health plan, prescription drug, dental, and vision plans, and life insurance for you and your eligible dependents in effect at the time of your retirement.

Persons Eligible to be Covered on U-M Benefits Plans

Only eligible person(s) covered under your U-M benefits plans at the time of your retirement can remain on the coverage.  Covered dependent children may remain on your benefits until they no longer meet eligibility requirements, up to the end of the month in which they turn 26 (as of 1/1/11). 

The ability to add persons to your coverage is severely restricted once you have retired.  Visit the Benefits Office website Benefits Eligibility section, or call the SSC Contact Center at 5-2000 from the Ann Arbor campus, 734-615-2000 locally, or 866-647-7657 toll free, Monday through Friday from 8 a.m. to 5 p.m. for information on benefits eligibility in retirement.


Open Enrollment

Each year during the Open Enrollment period, you may change your health plan to one of the other health plans offered by the university.  Coverage is effective the following January 1.

Moving out of a Managed Care Plan Service Area

Things to consider when moving out of a managed care plan service area.

Next: Frequently Asked Questions about Retiring from U-M

The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.