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Aug 11, 2021, 3:51 PM By MOSERSI have been told that you are able to use unused vacation time to purchase health insurance through the end of the year of the year you retire. For example, you retire September first you may use unused AL time to pay for health insurance for October, November and December. My last day worked is December 31 with a retirement date of January 1. Since my retirement date is January 1 am I able to purchase health insurance through December?
There is an option to pre-pay health insurance premiums in retirement with a payout of unused annual leave. However, this is outside of the scope of benefits that MOSERS administers. You can find the following information on MCHCP’s website:
- “Employees whose premiums are collected pre-tax through the cafeteria plan have the opportunity to pre-pay premiums pre-tax as a retiree. Prepaid premiums may only be paid within the same calendar year*. To prepay, retirees must submit their enrollment request at least 31 days prior to their retirement date. The first month’s premium for retiree coverage will be divided between the last two active paychecks. Additional prepaid premiums may be collected from the retiree’s last two active paychecks and/or lump sum vacation/compensatory time payroll. Verify this payroll amount with the HR/Payroll personnel to determine how many months of retiree premiums can be prepaid.
- If a retiring employee transfers coverage under a retired spouse, the prepaid premium will include the premium for both the retiree and spouse. MCHCP suspends deductions from the spouse’s retirement benefit during the prepaid months.
- Retirees who cancel or fail to elect coverage may not enroll at a later date. Retirees who return to state employment and become eligible for benefits through MCHCP will be treated as a new employee.
- *Employees with a retirement date of Dec. 1 cannot prepay premiums, since future premiums would be for a different plan year. Employees with a retirement date of Jan. 1 can only prepay premiums using funds from their final active payroll (usually Jan. 15) and/or their vacation and compensatory time payroll.” Source: Enrollment (mchcp.org)
Please note that the amount of your unused annual leave has no impact on your MOSERS retirement benefits.
Please contact your HR office, MCHCP, and ASI Flex for details on the forms you need to complete and associated deadlines. Additionally, we encourage you to check with your human resources office about policies on annual and sick leave accrual and usage before retirement.
Jul 1, 2020, 10:08 AM By MOSERSI was told when I retire, I will only be paid for 6 weeks vacation and anything over 6 weeks will be lost. Is this true?
The amount of vacation/annual leave that you can get paid for is determined by your agency, not by MOSERS. Limits on how much they will pay out may vary from one agency to another. The amount of your unused annual leave has no impact on your MOSERS retirement benefits.
Your monthly retirement benefit from MOSERS will be based on your final average pay and your credited service (this can include unused sick leave). MOSERS converts each block of 168 hours of unused sick leave into one month of service credit to be used in your retirement benefit calculation. So, any usage of sick leave near your retirement date may affect previous benefit estimates you have received.
We encourage you to check with your agency’s human resources office about your specific agency’s guidelines for annual and sick leave accrual and usage before retirement.
Jun 29, 2018, 8:47 AM By MOSERS
I was told: When retiring. You MUST work your last day before retirement. I was told that you cannot use comp or vacation time on your last working day.
Just to clarify—your last day at work is your “termination date”. Your “retirement date,” when it comes to getting your benefits from MOSERS, is the date you put on your Retirement Application and it will be the first day of the month in which you start receiving retirement benefit payments. For example, if a member’s last day at work is January 31, their retirement date could be February 1.
Your retirement date must be the first day of the month. You will need to contact your Human Resources representative regarding if you need to be present on your last day of work.
Annual leave has no effect on your MOSERS benefit. Please contact your agency’s human resources representative to determine your agency's procedure for using annual leave prior to retirement.
Jun 1, 2018, 3:30 PM By MOSERS
Once you submit retirement papers with a date for retirement are you allowed to take any annual or sick time?
Yes. Check with your agency’s human resources office about your specific guidelines for annual and sick leave accrual and usage before retirement. Please be aware that MOSERS converts each block of 168 hours of unused sick leave into a month of service credit to be used in your retirement benefit calculation. So, any usage of sick leave near your retirement date may affect previous benefit estimates you have received. Annual leave has no effect on your MOSERS benefit.
May 9, 2018, 9:24 AM By MOSERS
I have heard that at the time of retirement that you can use your AL balance to pay for medical coverage for up to a year. Is this true and if so how does it work?Yes, this is true. Check with your HR staff and MCHCP for specific information as it relates to you, but here is some general information we received from MCHCP on the topic: Your employer’s payout for your unused annual leave/vacation can be used to pay your medical insurance premiums during the remainder of the year in which you retire. When you fill out your MCHCP Retiree Enrollment Form, you may elect to deduct your premiums using your one-time lump-sum annual leave payout as long as you did not opt out of the Cafeteria Plan’s premium only category and current premiums are deducted pre-tax. Depending on how many hours of annual leave you have, this can be a sizeable amount and can result in tax savings!
After you send the form in, MCHCP will contact your department’s payroll representative to verify your lump-sum payout amount. You may only pre-pay for the remaining premiums in the year you have retired. For example, if you retire in July, you may potentially pay for your August-December premiums with your unused annual leave payout.
For more information about your particular situation, please contact MCHCP at (800) 487-0771.
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We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.