Office of the Provost

The University of Michigan Faculty Handbook

19.D Benefits During Retirement

Significant changes in benefits occur upon retirement. The faculty member may arrange for the immediate initiation of annuity payments or may choose to arrange for deferred payment. Other payment options are also available.

You may arrange to draw partial or full annuities at any time after retirement, phased retirement, or termination regardless of your age or length of service. If you select an annuity, you have several options for receiving the income, including a joint life survivor option, which will provide a lifetime income to both you and your spouse or partner.

However, there is no requirement that you draw an annuity from these accounts. You may withdraw the funds in a single sum or periodically, draw interest only, or receive distributions necessary to meet IRS minimum distribution guidelines. Generally, you can wait no later than April after the year in which you reach age 70 1/2 to begin receiving income if you are not working.
The University continues Group Health, Life Insurance and limited Dental Plan coverage for retired faculty members who have maintained their eligibility for these benefits through the required number of years of continuous service. See section 19.C "Retirement Eligibility." Retirees may have to make supplemental health insurance payments, including co-premium contributions. Other changes in benefits may also occur.

Ninety (90) days before a faculty member's date of retirement, he or she should contact the Benefits Office to confirm eligibility for retirement and to discuss any changes in benefits. As with non-retired faculty, retired faculty may review and change their medical insurance plans and other benefit options during the annual open enrollment period each fall.

See HR’s benefits website for information <http://www.benefits.umich.edu/events/retire/index.html>.
Faculty Handbook: Retirement, Emeritus/Emerita Status: