Retirement Ready

To be eligible for retiree benefits with the University of Colorado you must:

• Be in an active university 401(a)-eligible position with a 50 percent or greater appointment immediately preceding your retirement date; AND
• Meet the age-and-years-of-service requirement for post-retirement benefits. Normal and early retirement is defined by the Board of Regents.

If you meet both age and years of service requirements, you are eligible for normal retirement and entitled to receive 100 percent of the university's contribution toward retiree benefit plans upon retirement.

If your age and years of service at CU meet the minimum requirements outlined below, you are eligible for early retirement. The University of Colorado contribution for your benefits will be prorated based on the actual years of CU service divided by the required years of CU service for normal retirement and full contribution.

The University of Colorado Faculty Retirement Agreements allows the chancellor of each campus to authorize retirement incentives designed to give participants of the 401(a) Plan incentives and options for transitioning into retirement. Agreements may allow eligible CU faculty to pursue personal or professional interests and continue their academic and professional lives in gainful part-time employment. Options include negotiated differentiated workload, phased retirement and post-retirement CU employment, consulting opportunities, and more.

See detailed information about Faculty Retirement Agreements, including all authorized incentives.

3-5 years before retirement:

Familiarize yourself with the process of retiring from CU.

1. Talk to TIAA-CREF and other professionals about your retirement options.
2. Contact a benefits professional to discuss pre-retirement tasks.
3. Develop a retirement plan and track your progress. Consider:
   • When you’re eligible to retire
   • Your retirement date goal
   • Necessary savings for the retirement lifestyle you want
   • Tax-deferred savings plan limits (based on the Internal Revenue Service’s annual calendars)
   • Your CU benefit service years
   • Which, if any, current CU benefits you can retain in retirement
   • An estimate of your Social Security earnings

2-3 months before retirement:

• Review your eligibility for retirement. 
• Schedule a meeting with a CU benefits professional. 
• Review CU’s retiree benefits. 
• Notify your department of your intent to retire. 
• Work with your department to calculate a payout of your vacation and sick leave balances. 
• Review final contributions for any tax-deferred retirement savings plans to which you’re contributing via CU payroll deduction. 

One month before retirement:

1. Submit these forms to Employee Services:
   • Retiree Benefits Enrollment/Change Form
   • Retiree Banking Authorization Form
   • If applicable, 403(b) plan and/or 401(k) Plan enrollment forms, to adjust contributions
2. Notify your department of your expected retirement date.
3. Confirm with your department your vacation leave and, if applicable, sick leave payouts.
4. Ensure your final payroll deductions toward your voluntary retirement plans (CU’s 403(b) Plan, and PERA’s 401(k) and 457 plans) are correct.

If you’re enrolled in PERA, you must meet the following requirements for normal retirement:

• Hold an active university benefits-eligible position with a 50 percent or greater appointment immediately preceding your retirement date, AND
• Have a minimum of five years in a benefit-eligible position with a 50 percent or greater appointment.
• Meet PERA’s age and years of service requirements.
• Retire with PERA. If you elect to receive a lump-sum distribution from PERA or elect to postpone your retirement date, you will be considered terminated (not retired) from the university and, therefore, ineligible for university retiree benefits.

Employees who have worked for CU in a benefits-eligible position (50 percent or greater) for at least 20 years will receive 100 percent of CU's contribution toward retiree medical, dental and basic life insurance premiums.

Employees who have worked for CU in a benefits-eligible position (50 percent or greater) for less than 20 years are eligible for early retirement and will receive a prorated percentage of CU's contribution toward retiree medical, dental and basic life insurance premiums. Employees must have a minimum of 5 years of qualified service with the university.

3-5 years before retirement:

Familiarize yourself with the University of Colorado retirement procedures.

1. Contact a benefits professional to discuss pre-retirement tasks.
2. Talk to PERA and other professionals about your retirement options.
3. Develop a retirement plan and track your progress. Consider:
   • When you’re eligible to retire
   • Your goal retirement date
   • Necessary savings for the retirement lifestyle you want
   • Tax-deferred savings plan limits (based on the Internal Revenue Service’s annual calendars)
   • PERA service credit
   • Your highest average salary for PERA retirement earnings
   • Your CU benefit service years
   • Which, if any, current CU benefits you can retain in retirement
   • An estimate of your Social Security earnings

2-3 months before retirement:

• Review your eligibility for PERA retirement.
• Schedule a meeting with a CU benefits professional.
• Review CU’s retiree benefits.
• Contact PERA.
• Review PERA’s medical and dental benefits.
• Notify your department of your intent to retire.
• Work with your department to calculate a payout of your vacation and sick leave balances.
• Review final contributions for any tax-deferred retirement savings plans to which you’re contributing via CU payroll deduction.

One month before retirement:

1. Submit these forms to CU Employee Services:
   • Retiree Benefits Enrollment/Change Form
   • Retiree Banking Authorization Form
   • If applicable, 403(b) Plan and/or 401(k) Plan enrollment forms, to adjust contributions
2. Notify your department of your expected retirement date.
3. Confirm with your department your vacation leave and, if applicable, sick leave payouts.
4. Ensure your final payroll deductions toward your voluntary retirement plans (CU’s 403(b) Plan, and PERA’s 401(k) and 457 plans) are correct.

As you get closer to retirement, you may decide to start saving more of your salary to pad your nest egg. Voluntary retirement plans, available to all CU employees, are a great way to accomplish this.

University of Colorado 403(b) Voluntary Retirement Plan:

Deadline for Enrollment and Changes: Employee Services must receive forms no later than 5 p.m. on the 10th of the month to change end-of-month contributions.

2018 Calendar Year Limit: $18,500

2018 Age 50+ Catch-up Provisions: $6,000

Additional Catch-up Provisions: There is a 15-year catch-up provision for employees with 15 or more years of CU service. You may contribute up to $3,000 for five years (or $15,000 for a lifetime maximum) if you under-contributed in prior years.

Qualifying Distribution Events: Retirement, severance of employment, disability, attainment of age 59 1/2 or financial hardship. Note: There are early withdrawal penalties before age 59 1/2.

PERA 401(k):

Deadline for Enrollment and Changes: Employee Services must receive forms no later than 5 p.m. on the 10th of the month to change end-of-month contributions.

2018 Calendar Year Limit: $18,500

2018 Age 50+ Catch-up Provisions: $6,000

Qualifying Distribution Events: Retirement, severance of employment, disability, attainment of age 59 1/2 or financial hardship. Note: There are early withdrawal penalties before age 59 1/2.

PERA 457:

Deadline for Enrollment and Changes: Enrollment and changes must be made with the plan administrator by 2 p.m. on the 25th of the month to affect the next month's contribution.

2018 Calendar Year Limit: $18,500

2018 Age 50+ Catch-up Provisions: $6,000

Additional Catch-up Provisions: For three consecutive years before normal retirement age, you may be able to contribute up to twice the available limit if you under-contributed in prior years.

Qualifying Distribution Events: retirement, severance of employment, disability, attainment of age 70 1/2 while employed or for an unforeseeable emergency. Note: There are no early withdrawal penalties before age 59 1/2.

90-days before retirement, be sure to contact the vendor of your voluntary retirement plan. They will be able to assist you through the retirement process. The contact information for each vendor is provided below.

University of Colorado 401(a) Retirement Plan

Public Employees' Retirement Associate (PERA)