Congratulations on your upcoming retirement from Penn State! Penn State Employee Benefits would like to provide you with the most current information for a smooth transition into retirement and outline your benefits that you may retain upon your retirement.

Below is an overview of the retirement process, but be sure to use the Penn State Retirement Process for additional guidance on tasks you need to complete as you approach your retirement date.

Retirement Process:

• Six months to one year from your planned retirement date, attend a Preparing for Retirement presentation.
• Consult with your retirement plan vendor, TIAA or SERS, regarding your upcoming plans to retire.
• Call HR Services or submit an Inquiry through the WorkLion portal to confirm your eligibility to retire per Policy HR54, if hired on or after January 1, 2010.
• Notify your supervisor and/or local HR unit of your intent to retire so your unit can initiate the electronic retirement process in a timely fashion.
• Utilize the Penn State Retirement Process to ensure that your personal information is updated in Workday and you have reviewed your current benefits that will be available into retirement.
• Review your Retirement Healthcare Savings Plan and verify your Contact Information is accurate with TIAA
  • Create a personal log-in for TIAA and update your demographic information with them. Also review the information and videos available on the Retirement Healthcare Savings Plan.
• Evaluate and decide about your healthcare options

Retiree Kit

• Penn State Retirement Process
• Preparing to Retire On-Demand Presentation (coming soon)
• Retirement Health Savings Plan
• COBRA Information and Rates for Medical, Dental and Vision
• Retiree Programs & Resources
• Retiring and HSA or FSA Information

Non Medicare Eligible Info

• Healthcare.gov
• Pennie.org

Medicare Eligible Info

• SSA.gov
• Medicare.gov
• Request for Employment Information CMS-L564 (retirees over the age of 65 yrs and 4 mo)
• State Health Assistance Program

Additional Resources

• Phased Retirement Policy
• Phased Retirement Application
• Lifetime Benefit Solutions for COBRA Billing
• Retiree EyeMed Discounts
• Pennsylvania Association of Retired State Employees (PARSE) (dental, vision, and other coverages - not affiliated with Penn State University)

Active employees, can utilize Penn State's Employee Assistance Program, SupportLinc, to help review your specific options. Retired employees can access SupportLinc for 120 days after retirement.

Tuition discounts for retirees and their eligible dependents continue into retirement. For additional information please visit the Retiree Tuition Discount page.

For additional information or questions regarding retirement, please contact HR Services at 814-865-1473 or log an inquiry via the WorkLion portal.

When I decide to retire, how do I initiate the process? 

We recommend that you notify your Human Resources Department of your intent to retire first. These discussions should take place about 2 - 3 months prior to your expected retirement date, or as soon as you know you plan to retire.

What if an employee is not ready to retire completely?

Policy HR29: Voluntary Phased Retirement Program highlights eligibility requirements and the procedure for phasing into retirement.

Will I have enough income to retire?

Before you decide to retire, you should contact your retirement plan administrator. If you participate in the State Employee’s Retirement System (SERS), you can contact them at (800) 633-5461. If you participate in TIAA, you can contact them at (866) 842-2173. Your plan administrator can provide assistance to prepare you for retirement by taking into account a variety of factors including your age, number of years of service, and savings.

We realize that many facing retirement underestimate their net retirement income by overlooking the fact that items currently deducted from the paycheck will no longer be withheld in retirement. Taking these withholding items into account can significantly increase your projected spendable income. For instance, in retirement, you will no longer have Social Security and Medicare taxes withheld from your retirement checks. These two taxes amount to roughly 8% on income up to $106,800 annually, and 1.6% on incomes above that.

In addition, you also will not have unemployment insurance, long-term disability, parking, and likely life insurance withheld from your retirement checks. Another big deduction that will not occur with a retirement check is your SERS or TIAA monthly contribution, depending on which retirement plan you participate in. In Pennsylvania, retirees do not pay either state or local income tax on retirement income.

Will I receive a payment for my accumulated vacation or sick time?

Currently, Penn State's practice is to pay all unused vacation/sick out in the same month as the final paycheck.

Sick time is paid out in accordance with University policy HR34.

Deductions taken from a vacation and/or sick time payoff are limited to taxes only. However, if you are enrolled in a supplemental retirement program, or have other charity deductions (i.e. United Way), you will have a deduction taken from the final check. If you do not want these deductions, you will need to complete the appropriate paperwork to stop deductions.

Checks will be automatically deposited into your account that is set up currently with the payroll office.

How do I update my address with Penn State after retirement?

Contract HR Services at 1-814-865-1473 or use WorkLion to send an inquiry. You will also need to contact retirement vendors and other vendors directly to make any demographic changes directly with them.

How do I change my beneficiary designation for the life insurance policy I maintain with Penn State as a retired technical service employee?

Changes to beneficiaries can be made anytime by contacting HR Services at 1-814-865-1473. Once the applicable information is obtained for your request, a Penn State Employee Benefits representative will provide you with the correct form for changing your beneficiary.