Insurance & Other Benefits in Retirement

Employees retiring from the University will be notified of specific benefits termination information once their home department completes the separation paperwork.

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, you must follow the guidelines below, or your coverage will terminate at midnight on the last day of active employment, and retiree benefits will not be effective until the beginning of the following month. In order to prevent a gap in benefits coverage, it is important that you follow the guidelines listed below.

  • Civil Service employees - You must work through the 16th day of the month prior to your retirement date in order to transition with no break in coverage.
  • Academic Professional employees - You must work through the 15th day of the month prior to your retirement date in order to transition with no break in coverage.

View Vacation and Sick Leave Payout information to learn how to tax defer a portion of any payout you may receive.

State of Illinois Employee Benefits

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 insure 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.

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.

State of Illinois Dependent Benefits

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.

University of Illinois Benefits

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. 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.

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 70 ½ when the IRS required minimum distribution must begin.