Retirement changes: What you need to know
Two changes are being made to the University’s retirement provisions for faculty and staff.
The first change is in the criteria to qualify as a Purdue University official retiree. To qualify as an official retiree today, you must:
- be at least age 55,
- have at least 10 years of service to the University, and
- your age and years of service must combine to equal 70 or more.
Beginning July 1, 2014, the criteria will change to be more reflective of today’s workforce and increase flexibility for those considering retirement. The new criteria will be “age 55 with at least 10 years of service to Purdue in a benefits-eligible position.” The requirement to have a combination of age and years of service equaling 70 or more will be eliminated.
As an official retiree, you’re eligible for a number of ongoing benefits from Purdue, including the option to participate in retiree health insurance plans by paying the full cost, a complimentary “A” parking pass to stay connected on campus, tuition fee remission and several other benefits.
The second change relates to a benefit few are aware of before becoming an official retiree. Several years ago, the University began to provide two months of subsidized health insurance coverage for faculty and staff as they transitioned into retirement. That coverage was later converted into a $1,500 lump sum payment to official retirees and was paid from the medical plans.
Retirement timing issues that were a concern when the benefit began have been addressed through the years, so the $1,500 transition benefit will no longer be paid, beginning Jan. 1, 2015.