313 Retirement Plans
All regular employees scheduled to work 20 or more hours each week are covered upon employment by the Yale Staff Retirement Plan. Alternatively, managerial and professional staff working 20 or more hours per week may choose to join the Yale University Retirement Annuity Plan. Such employee is eligible for that Plan if 35 years or older or, if under 35, after two continuous years of Yale service in a position of 20 hours or more per week.
Employees contemplating retirement are encouraged to arrange for personal interviews with the staff of the Benefits Office to discuss pension projections and other retirement benefits.
313.1 Yale Staff Retirement Plan
313.1a Eligibility
The Plan covers regular employees scheduled to work 20 hours or more each week except those who are participating in the Yale University Retirement Annuity Plan (YURAP).
313.1b Vesting
An employee who has five or more credited years of service has vested rights to a Yale pension. Vested former employees are eligible to receive an annual retirement benefit commencing on the first of the month following the employee's normal retirement date.
A vested employee who leaves the employ of the University before retirement may choose to receive the current cash value of the pension, if that value is $7,000 or less.
313.1c Benefit Formula
The normal annual retirement benefit is based on the participant's highest annual rate of earnings during his or her final five years as an employee, the number of computed years of participation, and the following "multipliers":
| Final Earnings (Brackets) |
Multiplier |
|---|---|
| Up to $10,000 | 1.15% |
| $10,001 to $15,000 | 1.10% |
| $15,001 to $20,000 | 1.05% |
| Over $20,000 | 1.00% |
313.1d Types of Retirement
In addition to normal retirement at age 65, the Plan provides other types of retirement benefits for special situations, including a disability retirement and a provision for early retirement.
Disability Retirement. The Plan provides for retirement by reason of permanent and total disability. In order to qualify, an employee must have completed ten or more years of participation and be eligible to receive disability benefits under the Social Security Act. Payments under this Plan will reduce payments received under the Long-Term Disability Plan (see Section 308).
Early Retirement. An employee may elect early retirement, provided that at the time of election, he or she is an active University employee age 55 or over and the sum of his or her age and years of service is equal to or greater than 75. Election of early retirement results in a reduced pension because it is paid out over a longer period of time than a pension beginning at the normal retirement date. However, there will be no reduction in pension benefit if the retiring employee has reached age 60 and has 30 or more years of service.
Employees who retire with unused sick days will receive one-half service credit for each unused day. The additional credit may be used either to extend total service beyond the actual retirement date (for purposes of pension calculation) or to retire at a date earlier than justified by actual length of service.
313.2 Yale University Retirement Annuity Plan (YURAP)
As an alternative to the Yale Staff Retirement Plan, regular managerial and professional employees who are scheduled to work 20 hours or more each week may enroll in the Yale University Retirement Annuity Plan (YURAP). They may do so at any time if they have attained the age of 35, or, if under 35, upon completion of two consecutive years of service in a position of 20 hours or more per week. Enrollment in YURAP ends the accrual of benefits under the Yale Staff Retirement Plan. Once having switched to YURAP, an employee will retain any benefits earned under the Yale Staff Retirement Plan, but thereafter may not switch back to that Plan.
The Yale University Retirement Annuity Plan provides for employer and employee contributions at levels determined from time to time by the University. Participants may direct the investment of their own and University contributions to a variety of sponsored fixed income, stock, or money market funds. Accumulations are fully vested at all times.
313.3 Group Insurance Plans at Retirement
313.3a Life Insurance at Retirement
When an employee retires on a University pension immediately following employment, a $1,000 certificate of coverage is automatically substituted for whatever scheduled amount of insurance he or she may have had at the date of retirement. In addition, the retired person may convert the remainder of his or her insurance into any permanent form of insurance written by the insurance company. This may be done without medical examination within 30 calendar days of retirement. An interested employee should call or write the Benefits Office to obtain an application before the date of retirement.
313.3b Health Insurance at Retirement
For retirees with 30 or more years of service, the Plan generally continues the level of support for health insurance the employee and spouse were receiving before retirement.
Eligibility. A retired member of the managerial and professional staff who, at age 65 or more, has completed five or more years of consecutive regular service of 20 or more hours per week, is eligible. An employee retiring before age 65 is eligible if the sum of his or her age plus years of continuous service equals 75 or more at retirement. A retiree under age 65, and eligible for the retiree health insurance plan, may continue in whatever health plan he or she is enrolled until age 65. At age 65 the retiree will be offered one of the Medicare-based plans.
Calculation of Benefit. For each year of credited service, the retired employee will receive a monthly contribution equal to three and one-third percent of the amount the University would have paid to provide coverage to that employee in the Yale Health Plan. If the employee has a spouse at the time of retirement, he or she, for each year of the employee's credited service up to a maximum of 30 years, will receive an amount equal to three and one-third percent of the amount the University would have paid to provide coverage for that employee's spouse in the Yale Health Plan. A retired employee with 30 or more years of service is eligible for the maximum benefit.
Choice of Yale Health Insurance Programs. Retirees age 65 and above may choose one of two health insurance plans offered by Yale. Retirees below age 65 may remain in the plan in which they were enrolled while actively employed. Descriptions of the programs are available at the Benefits Office.
