Rehired U-M Retirees

Retirement Plan Cash Withdrawals
Eligibility for a cash withdrawal or rollover as a rehired retiree can be severely limited, depending on your age. If you will not be eligible for a withdrawal or rollover as a rehired retiree but will need access to your retirement funds, consult with TIAA, Fidelity Investments, or a qualified financial or tax adviser. Actions such as cash withdrawals or an IRA rollover prior to rehire may help access your retirement savings. However, there will be tax implications and loss of important retirement plan features, such paying higher fees in an IRA, on amounts that are rolled over or cashed out.

Basic Retirement Plan

You may take a withdrawal or rollover from the Basic Retirement Plan as a rehired retiree at age 59½ or older. This includes being eligible for a withdrawal or rollover in any of the following job titles:

Temporary hourly

Emeritus with funding

Any appointment effort as regular faculty or staff member, including LEO I, II, III, IV, Intermittent LEO, or Adjunct LEO.

Adjunct or supplemental instructional staff (clinical and visiting titles).

To receive the 10% University Contributions through the Basic Retirement Plan, follow these steps:

1. Enroll in the Basic Retirement Plan:

Contribution requirement. You must begin making 5% employee contributions from your eligible compensation.

University contribution. By making your 5% contribution, you will receive a 10% contribution from the university.

2. Eligibility as a Rehired Retiree:

No waiting period. As a rehired retiree, you are not required to complete the standard 12-month waiting period before receiving contributions.

3. Enrollment Process:

eForm. You can enroll in the plan and start receiving the university match by using the eForm available through your employer's system.

Paper Form Option. If you prefer to enroll using a paper form, you must download, complete, and submit the Cancel the Reduced Benefit Option form.

403(b) SRA and 457(b)

You are eligible to take a withdrawal or rollover from the 403(b) SRA and 457(b) at age 59½ or older, regardless of your job title or appointment effort as a rehired retiree.

If You Are Younger Than Age 59½

If you are younger than age 59½, you cannot take a cash withdrawal or rollover regardless of job title or effort as a rehired retiree from the Basic Retirement Plan, 403(b) SRA, or 457(b). However, employee 403(b) contributions and earnings in the Basic Retirement Plan and 403(b) SRA are available for withdrawal in instances of total and permanent disability or IRS-qualifying hardship expenses.

View for more information about cash withdrawals.
ESR and Your Health Plan
You may become eligible for health coverage under the Employer Shared Responsibility (ESR) provision of the Affordable Care Act if you come back to work at U-M after you retire.

Retirees are treated the same as other employees for the purposes of ESR. If you have health coverage as a retiree but you become eligible under ESR, your health plan may cost more than your retiree rate. Your unit will be charged for the university contribution for ESR coverage if you are paying the ESR rate as a rehired retiree.

Request a Personal ESR Evaluation

You may become eligible for benefits under ESR if ANY of the following apply:

You return to work as a temporary, contingent or regular employee within 26 weeks of retirement.

You return to work in a temporary or contingent position for at least 30 hours per week.

You return to work, and you average more than 30 hours per week during 12 months in one or more positions.

The best way to find out whether you’ll be impacted by ESR if you return to work after retirement is to request an ESR eligibility evaluation. Call the SSC Contact Center at 5-2000 from the Ann Arbor campus, (734) 615-2000 locally, or (866) 647-7657 toll-free, Monday-Friday from 8 a.m. to 5 p.m.

Frequently Asked Questions

Does a retiree who becomes eligible under ESR have to accept the coverage?

A retiree may not elect to continue retiree health benefits upon becoming eligible as an employee under ESR.

Can a retiree maintain retiree health benefits instead of ESR?

Upon becoming eligible under ESR, the individual's retiree health plan will be converted to ESR coverage as of the date of service or eligibility. Retiree health benefits will be reinstated when ESR eligibility or employment ends.

Note: ESR applies only to health plan and prescription drug coverage. All other retiree benefits would continue without interruption for an ESR-eligible retiree.

How much do health benefits cost under ESR?

A retiree may pay more or less for health benefits under ESR, depending on individual circumstances. View ESR health plan rates.

How will I pay for my ESR coverage as a retiree?

If you are a retiree who becomes eligible for ESR, your monthly premiums will be automatically deducted from your checking or savings account each month if you previously set up electronic funds transfer to pay for retiree benefits. Otherwise, you will receive a monthly billing statement.

If you would prefer to pay for your coverage via payroll deduction, please contact the Shared Services Contact Center at (734) 615-2000 locally, or (866) 647-7657 toll-free, Monday-Friday from 8 a.m. to 5 p.m.

Does ESR health coverage impact Medicare enrollment for a retiree returning to work at the university?

If you return to active employment with the university and become eligible under ESR after enrolling in Medicare, U-M will again provide primary coverage during your period of eligibility under ESR. Once your eligibility under ESR or your employment ends, your retiree benefits will be reinstated, and Medicare will become primary again.
Medicare and Your U-M Health Plan Coverage

Medicare becomes the primary coverage for you and any covered dependents age 65 years of age or older (or disabled) once you have retired.

Medicare becomes the primary coverage for an Other Qualified Adult (OQA) at age 65, even if you are still working. All services must be submitted to Medicare first for payment when it is the primary coverage. Your U-M health plan becomes secondary or supplementary to Medicare.

ESR Coverage and Medicare

If you return to active employment with the university and become eligible under Employer Shared Responsibility (ESR) after enrolling in Medicare, U-M will provide primary coverage during your period of eligibility under ESR. Once your eligibility under ESR or your employment ends, your retiree benefits will be reinstated, and Medicare will become primary coverage.

Newly Eligible for Employee Benefits and Medicare

If you return to active employment with the university as a regular faculty or staff member (including primary and instructional staff, LEO I, II, III, IV, or Adjunct) at 50% or greater effort lasting four continuous months or longer, you are eligible for employee health plan coverage. However, you are no longer eligible for retiree health plan coverage. If you already have retiree health plan coverage, you must enroll within 30 days of rehire in employee health plan coverage, since retiree coverage will cease, and you will not have U-M health plan coverage while rehired.

Your employee health plan coverage will again provide primary coverage during your post-retirement appointment period. Medicare is the primary coverage for an Other Qualified Adult starting at age 65, even if you are working. Once eligibility for employee health plan coverage ends (i.e, your post-retirement employment ends, your appointment effort or job title changes to one that is not eligible for employee health plan coverage, etc.), your retiree health plan coverage will be reinstated, and Medicare will become primary again.

If you continue to work but become ineligible for employee health plan coverage (i.e., your appointment as a regular faculty or staff member, including primary and instructional staff, is reduced to 49% or less, you become a temporary employee, etc.), you may qualify for ESR health plan coverage. Eligibility for ESR will depend on the terms of your post-retirement appointment as a regular faculty or staff member. This continuation of coverage will postpone the reinstatement of your retiree health plan coverage and postpone when Medicare will become primary again. Contact the Shared Services Contact Service Center and ask for an ESR evaluation to determine if you may be affected by ESR coverage.

View this flowchart for more information.

No ESR or U-M Employee Benefits

If you are not eligible for employee health plan coverage as a rehired regular faculty or staff member, including primary and instructional staff (eligibility requires a minimum 50% or greater effort lasting at least four continuous months) or health plan coverage through ESR, retiree health plan coverage continues. Medicare will continue to be primary over your retiree health plan coverage.

Medicare Enrollment Considerations

If you return to work and are eligible for coverage through ESR, or you are newly eligible for employee health plan coverage as a rehired regular faculty or staff member, including primary and instructional staff (requires a minimum 50% or greater effort lasting four continuous months or longer), it can affect your Medicare enrollment. Postponing or canceling Medicare enrollment or suspending it relative to an upcoming post-retirement appointment may be an important consideration. Call the SSC for an evaluation.

View for more information about Medicare.

Frequently Asked Questions For Professors Emeritus

I am a professor emeritus returning to work at the university. Do I need to be enrolled in Medicare parts A and B?

Yes. As a professor emeritus, you will remain eligible for retiree benefits even upon returning to work at the university, and you will not be eligible for benefits as an active employee. As such, your U-M Health Plan will not pay for claims unless you are enrolled in Medicare parts A and B. Medicare will be the primary payer, and U-M health coverage will only pay secondary to Medicare.

I am a professor emeritus returning to work at the university. Do my Medicare-eligible dependents need to be enrolled in Medicare parts A and B?

Yes. Anyone covered on your U-M Health Plan must be enrolled in Medicare parts A and B if they are eligible due to age or disability.

I am a U-M professor emeritus, but I am actively working elsewhere. Do I need to enroll in Medicare parts A and B? Do my dependents?

To have your U-M Health Plan pay for claims, you and your dependents must be enrolled in Medicare parts A and B. If you have active health coverage through your current employer, you do not need to enroll in Medicare. However, the only coverage you will have is your active coverage. Your U-M Health Plan will not pay for claims unless you are enrolled in Medicare parts A and B. Once you enroll in Medicare parts A and B, your U-M policy will pay after Medicare pays.
Returning to Work and Eligibility for Benefits
You may become newly eligible for employee benefits (health plan, Basic Retirement Plan, Flexible Spending Accounts, Long-Term Disability, etc.) depending on your job title, appointment duration, and appointment effort. Eligibility will vary by benefit program, and you must generally take action to enroll.

View more information about eligibility for benefits.

50% Effort or Greater

Appointment duration of four continuous months or longer as a regular faculty or staff member, including primary and instructional staff, and LEO I, II, III, IV and Adjunct.

If you return to active employment with the university as a regular faculty or staff member (including primary and instructional staff) at 50% or greater effort lasting four continuous months or longer, you are newly eligible to enroll in employee benefits. However, you are no longer eligible for retiree health plan coverage. If you already have retiree health plan coverage, you must enroll within 30 days of rehire in employee health plan coverage, since retiree coverage will cease, and you will not have U-M health plan coverage while rehired.

Your employee health plan coverage will again provide primary coverage during your post-retirement appointment period if you and/or any individuals covered on your health plan have Medicare. Note that Medicare is primary for an Other Qualified Adult covered on your health plan starting at age 65, even if you are working. Once your eligibility ends under the appointment (i.e., your post-retirement employment ends, your appointment effort or job title changes to one that is not eligible, etc.), your retiree health plan coverage will be reinstated, and Medicare will become primary again.

If you continue to work but become ineligible for employee health plan coverage (i.e., your appointment as a regular faculty or staff member is reduced to 49% or less, you become a temporary employee, etc.), you may qualify for ESR health plan coverage. Eligibility for ESR will depend on the terms of your post-retirement appointment as a regular faculty or staff member. This continuation of coverage will postpone the reinstatement of your retiree health plan coverage and postpone when Medicare (if enrolled) will become primary again. Contact the Shared Services Contact Center and ask for an ESR evaluation to determine if you may be affected by ESR coverage.

To receive the 10% University Contributions through the Basic Retirement Plan, follow these steps:

Enroll in the Basic Retirement Plan:

Contribution Requirement: You must begin making 5% employee contributions from your eligible compensation.

University Contribution: By making your 5% contribution, you will receive a 10% contribution from the university.

Eligibility as a Rehired Retiree:

No Waiting Period: As a rehired retiree, you are not required to complete the standard 12-month waiting period before receiving contributions.

Enrollment Process:

eForm: You can enroll in the plan and start receiving the university match by using the eForm available through your employer's system.

Paper Form Option: If you prefer to enroll using a paper form, you must:

Download, complete, and submit the "Cancel the Reduced Benefit Option" form.

Other Benefit Highlights

Dental, Vision and Legal Coverage

If you have dental, vision, and legal coverage as a retiree, you do not need to re-enroll upon rehire; coverage automatically continues.

FSA/Life and Disability Insurance

You must enroll in Flexible Spending Accounts and Optional and Dependent Life Insurance within 30 days of rehire to have coverage while you are rehired.

University Life ($30,000 university-paid coverage) resumes upon rehire if you have retiree life insurance.

View information about eligibility for Long-Term Disability.

Basic Retirement Plan

You are eligible for the Basic Retirement Plan, but must enroll if you wish to contribute 5% and receive the U-M 10% match.

Follow these steps:

1. Enroll in the Basic Retirement Plan:

Contribution Requirement: You must begin making 5% employee contributions from your eligible compensation.

University Contribution: By making your 5% contribution, you will receive a 10% contribution from the University.

2. Eligibility as a Rehired Retiree:

No Waiting Period: As a rehired retiree, you are not required to complete the standard 12-month waiting period before receiving contributions.

3. Enrollment Process:

eForm: You can enroll in the plan and start receiving the university match by using the eForm available through your employer's system.

Paper Form Option: If you prefer to enroll using a paper form, you must download, complete, and submit the "Cancel the Reduced Benefit Option" form.

403(b) SRA and 457(b) Retirement Plans

You may contribute to the 403(b) SRA and 457(b) Deferred Compensation Plan.

49% Effort or Less

Appointment duration of four continuous months or longer as a regular faculty or staff member, including LEO II, III, IV, but excluding LEO I, LEO Intermittent, and Adjunct.

Effective Jan. 1, 2025, LEO I and LEO Intermittent are eligible for the Basic Retirement Plan with a 1% or greater effort.

You are eligible for the Basic Retirement Savings Plan, but you must enroll if you wish to contribute 5% and receive the U-M 10% match. You may also contribute to the 403(b) SRA and 457(b) Deferred Compensation plans. You may become eligible for health plan coverage under ESR and have to pay ESR health plan rates instead of retiree health plan rates. Information about eligibility for Long-Term Disability is available at hr.umich.edu/ltd.

49% Effort or Less

Appointment duration of four continuous months or longer as LEO I, LEO Intermittent, and Adjunct.

Effective Jan. 1, 2025, LEO I and LEO Intermittent are eligible for the Basic Retirement Plan with a 1% or greater effort.

You may contribute to the 403(b) SRA and 457(b) Deferred Compensation Plan. You may become eligible for health plan coverage under ESR and have to pay ESR health plan rates instead of retiree health plan rates. Information about eligibility for Long-Term Disability is available at hr.umich.edu/ltd.

Temporary

You may contribute to the 403(b) SRA.

Emeritus with Funding

You may contribute to the 403(b) SRA and 457(b) Deferred Compensation.

Call the Shared Services Contact Center for an analysis of your situation at (734) 615-2000 locally, or (866) 647-7657 toll-free, Monday-Friday from 8 a.m. to 5 p.m. Not every scenario is covered in this table, such as holding two or more appointments concurrently.

Staff Human Resources

Contact Us

Rehired U-M Retirees

Basic Retirement Plan

403(b) SRA and 457(b)

If You Are Younger Than Age 59½

Request a Personal ESR Evaluation

Frequently Asked Questions

ESR Coverage and Medicare

Newly Eligible for Employee Benefits and Medicare

No ESR or U-M Employee Benefits

Medicare Enrollment Considerations

Frequently Asked Questions For Professors Emeritus

50% Effort or Greater

Other Benefit Highlights

Dental, Vision and Legal Coverage

FSA/Life and Disability Insurance

Basic Retirement Plan

403(b) SRA and 457(b) Retirement Plans

49% Effort or Less

49% Effort or Less

Temporary

Emeritus with Funding

Staff Human Resources

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