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U.Va. Human Resources
Medical Center Retirement Plan (MCRP)
Pre-Retirement Guide
Resources
If you are a full-time medical center staff or part-time medical center staff who signed a flex agreement who wants to retire, you must request that your department submit your retirement to the Medical Center Human Resources Department. You should also follow the steps below to insure the timely receipt of your benefits:
  • If you are enrolled in the Medical Center Retirement Plan, contact the company(ies) with which you have your retirement plan at least four to six months prior to your retirement and ask for information about your distribution options and the forms you need to complete. Also contact the University Human Resources Benefits Division at (434) 924-4392 to discuss health insurance and other retirement benefits.
  • At least three months prior to your retirement, telephone or write the local Social Security Office to apply for payments, if desired. If you or a dependent are age 65 or older, you must also apply for Medicare to begin as of the retirement date.
The benefits available for you at retirement include MCRP, Social Security and Medicare, health care insurance, and, in many cases, life insurance, and distribution from tax-deferred savings. On the following pages is general information about all of those benefits, except Social Security and Medicare, and information about the taxability of retirement income. Also provided is an explanation of health care insurance available to you, both during employment and after retirement.

Medical Center Retirement Plan

You may defer receipt of retirement benefits resulting from UVA employment until the
later of
  • April 1 of the calendar year following the year in which you turn age 70-1/2; or
  • April 1 following the year in which you retire.
Please contact your MCRP vendor to discuss distribution options.

Fidelity Investments

(800) 343-0860

TIAA-CREF

(800) 842-2776

Vanguard

(800) 523-1188

If you defer retirement benefits, you are not eligible to enroll in the retiree health insurance program.



Taxation of Retirement Benefits

Retirement plan contributions are usually made with before-tax dollars, so federal income taxes are deferred until you begin taking withdrawals later on.

No taxes are due on pretax contributions and earnings made until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59½ (subject to plan rules). If you withdraw funds before age 59½, they may be subject to an additional 10% early-withdrawal penalty.

For additional information and guidance, contact your tax advisor.


Health Care Insurance

Health Care Insurance for Active Employees Age 65 and Over
Health care insurance for active employees age 65 and over (and their spouses) is identical to that of employees under age 65. Because Medicare is the secondary provider while you remain employed, you may enroll in Medicare Part A just before your 65th birthday, but may defer Medicare Part B until you retire. If you enroll in Medicare Part B just before you retire, there will be no penalty.

Eligibility for Health Care Insurance After Retirement
The Commonwealth of Virginia provides a health insurance group for retirees who receive VRS, ORP or MCRP retirement income. The Benefits Division will assist you with the health insurance application if you elect coverage for yourself and dependents at the time you retire. Your spouse will be able to continue coverage for the rest of his or her life in the event of your death if both of you elect coverage when you retire and you continue coverage in the state retiree insurance program until your death.

If you are enrolled in VRS, your health insurance premium will be deducted from your monthly VRS check if it is large enough to cover the premium. If you are enrolled in the MCRP or your VRS check is too small to pay your health premiums, you may choose to receive coupons and pay premiums by check each month or you may authorize a monthly bank draft from your checking or savings account to pay your premiums if the administrator of your insurance plan offers this option. If you or your spouse or dependents are ineligible for Medicare when you retire, those ineligible for Medicare will be covered by the UVa Health Plan. Dental and/or vision options are available in addition to the basic health coverage.

If you or your spouse or dependents are eligible for Medicare, the state insurance program is available to those who are Medicare-eligible as secondary coverage after Medicare. The Commonwealth group currently offers one Medicare-supplement plan with a dental/vision option.

This offering is subject to change each January 1.

Insurance Rates for Retirees

Health Credit for Retirees

The Commonwealth of Virginia provides a partial subsidy to cover the health insurance cost. The subsidy is a tax-free credit on the monthly premium and is available for retirees with 15 or more years of service. The monthly credit is calculated by multiplying $4.00 by the number of years of service. If you are enrolled in the MCRP, UVA will calculate your health credit amount when you retire and send appropriate paperwork to the VRS since this organization distributes the monthly credit to eligible retirees. If you waive your right to enroll in the state plan, you must complete the VRS-45 form to receive your monthly health credit. This form must be completed every time your premium or health insurance carrier changes.

How to Enroll in Retiree Health Insurance

During a pre-retirement appointment with a representative of the Benefits Division, you and your spouse may complete applications for the retirees' group. If you do not elect health insurance within 31 days of retiring, you waive all future rights to the coverage. Detailed information about the health insurance options is available from the Benefits Division.

How to Change Retiree Health Insurance Coverage

Retirees in the state insurance program who need to make any health coverage changes should contact the Benefits Division of University Human Resources. These changes include additions, deletions, address changes, and Medicare eligibility. Some changes can only be accepted and processed at specific times during the year. Therefore, it is imperative that you contact the University Benefits Division as soon as the event causing the change occurs.

Other Benefits

Prudential Life Insurance
At the present time, the Medical Center provides $5,000 in life insurance to eligible retired staff who have participated in Prudential Life Insurance. Eligible medical center staff are those who retire at age 55 or older with five or more years of service provided that the sum of age and service is greater than or equal to 70. $10,000 is provided to those retirees who have participated in MetLife Insurance and were not eligible to retire under VRS on July 1, 1993 but who will be eligible to retire on or before July 1, 2003.. You may verify your insurance and beneficiary at the time you retire. The Prudential Life Insurance Plan also allows you, at retirement, to convert part or all of the basic and supplemental insurance you have as an active employee.

Tax-Deferred Savings
If you have been participating in Fidelity, TIAA/CREF, Vanguard, or Security Benefit tax-deferred savings plans or the Commonwealth's 457 tax-deferred savings plan, you can elect to receive income at the time of retirement. Or, you may defer payments until April 1 of the calendar year following the year in which you attain age 70 ½ or following the year in which you retire, whichever is later. You may make arrangements by contacting the company(ies) directly at the telephone numbers shown below:

Fidelity Investments(800) 343-0860
Security Benefit(800) 888-2461
TIAA/CREF (800) 842-2776
Vanguard(800) 523-1188
ING (457 Plan)(877) 327-5261

Appointments can also be made to meet with a campus representative from each vendor.


Payout of Unused Annual Leave
Medical center employees will be paid for unused accrued PTO hours at 100% of the employee’s base rate of pay. 25% of the employee’s catastrophic leave balance, up to a maximum of $5,000, will be paid upon termination if the employee has five or more years of continuous service.



"Perks" For Retirees
  • Athletics - Retired staff may purchase season tickets for football and basketball based on the availability of tickets at the same rate as currently employed staff. Retired staff that had more than five years of service may purchase a pass for use of athletic facilities. (Intramural-Recreational Sports at (434) 924-3791; Ticket Information at (434) 924-8821.)

  • Birdwood - Any full-time staff member who retires is eligible to continue receiving the staff rate on membership. Proof of full-time staff status may be required if information is not on file at Birdwood ((434) 293-4653).

  • Bookstore - A 10% discount on books is available to retired staff. The bookstore prefers that retired staff present an ID card ((434) 924-3721).

  • Course Offerings -Any member of the community may take courses. Information concerning education benefits for senior citizens (60 years or older) is available from the Division of Continuing Education ((434) 982-5313).

  • Inside UVA - This weekly newsletter published for University faculty and staff will be sent to your home address with the payment of an annual fee of $10.00 ((434) 924-3801).

  • Library - Retired staff who can demonstrate that they are residents of Virginia may become cardholders at no cost.

  • Parking - Retired staff who are 65 years or older may purchase blue stickers at a reduced annual cost ((434) 924-7231).

  • University Foreign Travel Opportunities - Retired faculty may participate in this program sponsored by University Human Resources. Usually one trip is planned in the Spring and one in the Fall ((434) 924-4381).

For more detailed information, contact the Benefits Office at (434) 924-4392 or email benefits@virginia.edu.