University of Virginia Faculty Retirement Guide

Organized into six chronological sections (by proximity to retirement), this retirement guide contains resources, advice, and action items that will guide you throughout your career when preparing for and progressing towards retirement.

For questions related to this document and/or retirement, please contact the HR Solution Center: Telephone: 434-243-3344; Fax:434-924-4486 or Email: askhr@virginia.edu

As a New Hire

Choosing a Retirement Plan

  1. Make an informed decision when selecting your retirement plan.  Faculty members may select either the Optional Retirement Plan (ORP) or the Virginia Retirement Plan.  For assistance in choosing a retirement plan, faculty may schedule an appointment with a UVA HR benefits counselor by contacting the HR Solution Center: 434-243-3344.

    1. If you select the Optional Retirement Plan, invest your retirement funds wisely.  Carefully consider “life cycle” or “target date” funds so your investments automatically rebalance as you age.You may request assistance from the ORP representatives of yfour chosen provider via the numbers listed below.
      • Fidelity: 1-800-343-0860
      • TIAA: 1-800-842-2252
    2. If you select the Virginia Retirement Program, your retirement contributions are invested by Virginia Retirement System (VRS).  Faculty electing VRS may qualify for purchase of previous service. VRS Hybrid Retirement Plan participants have one year to purchase previous service at 4% of creditable compensation (salary) rather than an actuarial rate.

     

  2. If possible, maximize your optional voluntary contributions to your primary retirement plan.

    1. As a University employee you are eligible to enroll in one or both of the additional retirement savings plans known under IRS regulations as 403 (b) and 457 programs.  Employees enrolled in a VRS Hybrid plan can only enroll in 403 (b) and 457 programs after maxing out their VRS Hybrid plan by contributing the maximum voluntary 4% to the defined contribution portion of their VRS Hybrid plan. In 403 (b) and 457 programs you can set aside funds after tax under a Roth provision or defer a significant amount (the maximum changes yearly) on a tax deferred basis.
    2. Enroll in the 403b and/or 457 supplemental savings plan. You may participate in the 403b supplemental savings Program with either primary retirement plan. Employees with VRS Hybrid Retirement Plans must first put the full 4% optional voluntary contribution into their VRS Hybrid Retirement Plan in order to enroll in the 403(b) plan and receive the UVA cash match.

     

Retirement Planning Resources

  1. Read materials on retirement planning. The links below provide some baseline information about this topic.
  2. Start creating a retirement plan that includes your priorities for retirement. The following pages discuss how to align your plan to your personal needs.
  3. The University frequently offers Retirement Planning Workshops. Employees of all ages are encouraged to attend, though attendance is particularly important for those 50 years and older.  Other seminars may be offered periodically concerning estate, taxes, wills and trusts, or other retirement needs.  Periodically check the University Human Resources UVA Employee Well-Being Program webpage for the dates of these events. The University of Virginia Community Credit Union, investment companies, and local banks also offer free retirement planning events.
  4. The University has many programs to assist you in maintaining and improving your health. To find ones which may interest you, browse programs offered by UVA Employee Well-Being Program, Faculty and Employee Assistance, and Intramural-Recreational Sports.
  5. Be sure to take advantage of the first class healthcare offered in our community.  Your Aetna Health Insurance coverage includes preventive care such as annual physical exams and screenings. Visit HR’s ‘UVA Health Plan’ webpage for more information regarding your health plan.
  6. Look into establishing or updating a will. If you have a will, your property will go to the person(s) named and in the amounts you specify. Without a will, the law arbitrarily distributes your property according to prevailing regulations, and the matter of who will administer the estate can involve painful disputes and needless expense. If you do not have a will already established, you are strongly advised to make one at this time.

Other helpful organizations & resources:

Every 10 Years

  1. Meet periodically with your retirement plan and savings plan representatives to review retirement income from all sources. Discuss your investment portfolio including the funds you have selected, your risk level, accumulated balances, projected totals at retirement, and designated beneficiaries.Develop a long-range target for income. Make saving for retirement a priority and increase your savings. Determine if you are contributing the maximum to your retirement plan, take advantage of catch-up provisions, and weigh the advantages and disadvantages of changing the allocation of funds prior to retirement and after retirement. Discuss the options you have to withdraw accumulated retirement plan assets. Your provider’s representatives can provide specific information illustrating your projected retirement income and distribution options: Fidelity: 1-800-343-0860 or TIAA: 1-800-842-2252 or ICMA: 1-877-327-5261.

    You should also periodically check any retirement income from other employers or other sources of income which you may have.

  2. If you are a member of the Virginia Retirement System (VRS) you can request an estimate of your retirement benefits from a UVA HR benefits counselor by calling 434-243-3344, or by logging into the VRS system directly (www.varetire.org). Those in VRS should also determine if purchase of previous service is an option for you.
  3. Review your annual Personal Earning and Benefit estimate from the Social Security Administration (SSA). If you have not yet received your annual estimate, you may request one online. You can also use the SSA’s online Retirement Estimator to estimate the future value of your Social Security Benefits. You can establish an online “my Social Security” account on the SSA’s account creation page.
  4. As your needs may change over time, you should periodically review your life insurance levels. An overview of employee life insurance and plan-specific resources are available on the UVA HR website.  VRS members may receive additional information and assistance with their life insurance plans on the Virginia Retirement System website or by calling their provider (Securian Financial) directly at 1-800-441-2258. ORP members can contact their insurance provider (The Standard) at 1-800-843-7979. Optional coverage may be subject to Evidence of Insurability in many situations.
  5. Review your University disability insurance coverage. Both ORP-covered and VRS-covered employees can find information and additional contact regarding their disability coverage on the UVA HR “Disability Benefits” webpage.
  6. Explore your need for long term care insurance. Visit the Genworth Financial website or call 1-800-870-0877. If this is the right choice for you, starting while healthy and at a younger age may save you in premiums.
  7. Review and, if necessary, update your beneficiaries. You should confirm that you have the most up-to-date beneficiaries designated on file as the beneficiaries you designated when you first started at UVA may no longer be current. You should review your beneficiaries for your retirement plan; life insurance; tangible and intangible property; and stocks, bonds, and other financial holdings.
  8. Look into designating a power of attorney or set up a trust. There may be an occasion when you cannot act on your own behalf in certain legal matters. A power of attorney may be financial or health related. You may grant someone you trust to act as “Power of Attorney” on your behalf. You will sign a notarized document specifying the details of what matters to you, who should represent you, and for what period the document is effective. A trust is a plan where a trustee holds money that you have transferred and manages it according to a written trust agreement. A trust can be living or testamentary, revocable or irrevocable. Your attorney or trust officer at your bank can provide you with a cost estimate.
  9. Re-evaluate your tax plan. Consult periodically with a financial planner, estate planner, tax attorney or a certified public accountant to assist in your annual tax planning as well as planning for retirement.
Five to Three Years Prior to Retirement

  1. Review the items listed for “Every Ten Years”. Meet with your retirement plan and Tax Deferred Savings, VRS, and Social Security representatives to estimate the assets you will have when you plan to retire. You should also consider the value of any owned real estate. Likewise, develop a list of all your expenses, especially those that you believe will continue after your projected retirement date.

    Consider developing a contingency plan to consider large cost items such as illnesses, marriage, divorce, weddings, moving, travel plans, a new vehicle, and death. The overall objective is to determine if you will have sufficient funding to retire. This analysis may lead you to explore working full or part-time after retirement, possible relocation to a lower cost of living community, housing options, lifestyle choices, choice of leisure activities, or extending your projected retirement date.

    Also consider using a financial planner, estate planner, tax attorney or a certified public accountant to assist in your retirement planning. There are a number of retirement calculators available to assist you: Fidelity, TIAA, VRS, Social Security Administration, and AARP.

  2. Visit the UVA HR ‘Benefits’ website to become informed of retirement information and resources.
  3. The University frequently offers Retirement Planning Workshops. Employees of all ages are encouraged to attend, though attendance is particularly important for those 50 years and older. Other seminars may be offered periodically concerning estate, taxes, wills and trusts, or other retirement needs. Periodically check the University Human Resources UVA Employee Well-Being Program webpage for the dates of these events. The University of Virginia Community Credit Union, investment companies, and local banks also offer free retirement planning events.
  4. Plan your post-retirement use of time. You might consider continuing your education, working part-time, starting a second career, consulting, volunteering, spending time with? family and friends, or other non-work-related activities. Develop and interact with a network of people who are already retired. If you think you might want to join an organization after retirement, join now to see if it is a good fit. The Jefferson Area Board of Aging (JABA) is a local community service agency that offers activities and support to senior citizens in our community as does The Center at Belvedere (formerly The Senior Center). JABA also offers health insurance counseling to assist you in evaluating and comparing various health plan options.
  5. Consider how you can transition smoothly into retirement. The following resources provide possible actions and potential strategies that will help make your progression into retirement a gradual and manageable one—both financially and mentally.
  6. Gather required documentation, including your birth certificate, Social Security Card, and, if applicable, marriage certificate (or divorce decree), which you will need when you elect retirement benefits. Obtaining records can be time consuming, particularly if the records must come from foreign countries or rural areas of the U.S. Once gathered, keep these documents in a secure, fire-safe location. There are several other documents and information you may wish to collect; the Personal Information Template provided by the American Academy of Pediatrics provides a good list of such documents.
  7. Evaluate and reduce your debt and maximize your savings. The University of Virginia Community Credit Union and many local banks offer free financial planning.
  8. For assistance in reviewing information on premiums for The UVA Retiree Health Plan and the state’s Medigap plan Advantage 65, faculty may schedule an appointment with a UVA HR benefits counselor by contacting the HR Solution Center: 434-243-3344. More information on Medicare is available at medicare.gov. You can also research additional benefit options offered through the Health Insurance Marketplace.
  9. Contact past employers to find out whether you qualify for retirement income under their plans.
  10. Calculate your life expectancy. This will give you further understanding if you will have sufficient funding to retire. The Social Security Administration provides a Life Expectancy Calculator.
  11. If you are a veteran, take the following actions:
    1. Contact the military to find out whether you qualify for retirement income under their plans.
    2. Review the U.S. Department of Veterans Affairs’ healthcare coverage.
    3. Review the VA Aid and Attendance or Housebound benefits. To be eligible, the veteran must have received an honorable discharge, served on active duty for at least 90 days, and at least one day during a period of wartime. There are monetary benefits that cover the veteran and, if the veteran is deceased, his or her spouse. If younger than 65, the veteran must be totally disabled. If age 65 or older, there is no requirement to prove disability. There are income limits that must be met to be eligible. If you are receiving a VA pension, these benefits may be added to your pension amount. For complete eligibility requirements, visit the site linked here.
  12. Research housing implications and options. The Jefferson Area Board of Aging (JABA) has developed a planning document that covers the Fluvanna, Louisa, Nelson, Greene, Albemarle, and Charlottesville areas. The School of Architecture assisted the project by creating spatial maps that identify affordable and accessible housing located close to retail and service areas; dependable transportation options; pedestrian-friendly, health-promoting and accessible community design; affordable and accessible city or county services and amenities (museums, libraries, parks); and affordable, coordinated health and support available in these local settings. Three additional themes of the 2020 Plan include senior and caregiver-friendly employment practices; social, cultural, educational and recreational opportunities to engage people of all ages; senior-friendly practices by businesses, organizations, and churches.
  13. Weigh the pros and cons of possible retirement locations. The following resources may help you to begin these considerations:
  14. Create a tentative retirement date.
    1. Faculty members in the Optional Retirement Program (ORP) may retire at any age. A teaching faculty member who wishes to retire should inform their department chair, dean, and Executive Vice President/Provost in writing by March 1 of the year in which retirement is planned.
    2. Retirement eligibility for Faculty in VRS varies for VRS Plan 1, VRS Plan 2 and VRS Hybrid members. Faculty in VRS can find information on their earliest opportunity to retire and associated benefit amounts by registering for MyVRS at https://www.varetire.org/ or by meeting with a benefits counselor.
    3. To be eligible for the UVA Retiree Health Benefits Program faculty members must have at least 5 consecutive years of benefitted employment directly preceding their retirement and be eligible for either a VRS pension benefit or to draw a period benefit from their ORP.
One Year Prior to Retirement

In addition to clarifying and updating your retirement information, faculty members have additional things to consider. It is also the time to formulate specific decisions and establish a specific timeframe for implementing these decisions.

  1. To review retirement, health plan, and other benefits options, faculty may schedule an appointment with a UVA HR benefits counselor by contacting the HR Solution Center: 434-243-3344.
  2. Meet with your retirement plan and 403b and/or 457 savings plan representative to calculate specific retirement income, expense projections, and distribution options. Discuss your investment portfolio including the accounts you have, funds you selected, accumulated balances, projected totals at retirement and the advantages and disadvantages of changing the allocation of funds prior to retirement and after retirement. Discuss the options you have to withdraw accumulated retirement plan assets. Identify what forms need completion and how they are obtained. This is the time to determine how much of your current income you will need for your living expenses in retirement and whether you need to accelerate your savings for retirement. You may request assistance from the representatives of your chosen provider via the following numbers: Fidelity: 1-800-343-0860 or TIAA: 1-800-842-2252 or ICMA 1-877-327-5261.

  3. Research benefits options offered by Social Security. You may want to meet with a Social Security Administration representative to discuss your options for when to take your Social Security Retirement Income. For an overview of retirement age effects on benefits, visit the SSA webpage.

    You also have the option to file-and-suspend. If you have a spouse who is receiving their full retirement benefit, you may file-and-suspend your benefit and request to take one-half of your spouse’s full benefit amount. This does not affect the amount of retirement benefit received by your spouse. This will allow you to continue to earn the additional 8% per year until you reach 70. At that time you can file to take your full retirement benefit.

    The Charlottesville area District Social Security Administration office is located at 1470 Pantops Mountain Place and can be reached by telephone at 1-800-772-1213. You can find booklets online as well as a local office locator at the Social Security Administration homepage. If you haven’t already done so, you are encouraged to create an account with “my Social Security.”

  4. Begin to gather information regarding health benefits. Research the State’s Retiree Health Benefits Program either on the UVA HR site or at the state-level Department of Human Resource Management webpage. More information on Medicare is available at medicare.gov. You can also research additional benefit options offered through the Health Insurance Marketplace.
  5. Meet with your tax advisor and/or financial planner to inform them of your impending retirement.
  6. Make sure your will, estate planning, financial and health powers of attorney are in order. As difficult as it may be, educate yourself on the options around palliative care and hospice. It is best to know about your choices well before you need them, and to communicate your wishes formally to your designated power of attorney.

  7. Select a specific retirement date.

    At this point, the following University related steps should be taken:

  8. Speak with your department chair and dean regarding your retirement and its timeline.

    Prepare for transfer of duties/responsibilities at work. Discuss emeritus status; refer to PROV-018 for eligibility information. This is the time to discuss continued departmental activities (e.g., teaching, research, and community service) if you expect to remain active in the department after retirement. Discuss office, laboratory, or studio space available-- because such locations are usually relinquished upon retirement so that they are available to active faculty. The dean, on advice of the department chair, will weigh any request against alternate uses for the space in advancing the scholarly purposes of the University.

    Follow up the discussions with the department chair/dean submit a formal notification by writing a letter of intent giving the date of your proposed retirement and any other appropriate facts. This correspondence must be given to the chair/dean and Executive Vice President and Provost by March 1 of the year in which retirement is planned.

  9. If you contemplate gifting books or other materials to the Library, please contact a collection management librarian beforehand. Contact information can be found on the Library’s ‘Book Donations and Other Gifts-In-Kind’ page.

  10. Contact the University Library to discuss the possible gifting of books, journals, or other materials before sending them. Appropriate materials selectors or branch librarians may be queried in advance about offers of such gifts-in-kind. For a listing of these individuals, see the Librarians for UVA Departments page which is linked from the Library’s home page. The Library welcomes donated books and manuscripts that enhance its collections in support of the University’s teaching and research needs. The Library may decline offers of gifts if they unnecessarily duplicate existing holdings, if the subject matter is outside the scope of its collections, or if there are donor restrictions the Library cannot honor.

    In order to provide a service to potential donors, the Library has worked with several other Virginia educational institutions to create a referral list for materials that may be made directly to another institution in the Commonwealth. If a gift collection is accepted, the Library may sell any involved items not appropriate for the collection which also cannot be referred to other libraries. Library Staff is not permitted to appraise gifts, but there are a number of local appraisers who can be consulted. For questions relating to general gift policy matters and information concerning basic tax and estate planning in connection with gifts-in-kind, consult the Library’s ‘Book Donations and Other Gifts-In-Kind’ page.

  11. Learn more about the Retired Faculty Association.
  12. Begin to inform appropriate professional organizations of your status change, if applicable.
Four Months Prior to Retirement

This is the time to take action to implement decisions you have reached about benefit plan coverage during retirement.

  1. Meet with a UVA HR benefits counselor to review and make your benefit choices. It is critical to meet to discuss your options for continuing your healthcare and life insurance. You will need to complete the required paperwork for those benefits that you are eligible to continue after retirement. Enrollment in the Retiree Health Benefits Program is entirely your choice. You must make a decision to enroll for retiree coverage within 31 days of your retirement date or you will lose this option forever. All retirees who have worked at least 15 years are eligible for the VRS Retiree Health Credit so long as they are paying health premiums somewhere. The Retiree Health Credit is a monthly lump sum $4 credit for every year of benefitted service. If you are eligible, sign-up and complete form VRS-75, “Optional/Alternative Retirement Plan Health Insurance Credit Certification of Service.” To make an appointment to discuss retirement benefits, contact the HR Solution Center: 434-243-3344.
  2. Research the State’s Retiree Health Benefits Program either on the UVA HR site or at the state-level Department of Human Resource Management webpage. You also have the option to choose your health coverage through the Health Insurance Marketplace. You will also receive a COBRA letter to sign-up for healthcare for 18 months whether or not you sign-up for the State Retiree Health Plan. If you elect to be covered by the State Retiree Health Plan, you may ignore the COBRA letter.
  3. Meet with your ORP/403(b) vendor representative. You may request assistance from the representatives of your chosen provider via the following numbers: Fidelity: 1-800-343-0860 or TIAA: 1-800-842-2252 or ICMA: 1-877-327-5261. The purpose of this meeting should be to clarify any additional questions you may have about your accounts including current fund allocation, accumulated balances, and distribution options. Mainly, this meeting should establish what action steps you need to implement your distribution decisions. These will include what forms need to be completed and when they need to be received in order to assure a smooth transition to retirement.
  4. If retiring at age 62 or older, contact the local Social Security Administration Office and Medicare Office. If you haven’t discussed your options for when to take your Social Security Retirement Income, meet with a Social Security Administration representative. The Charlottesville area District Social Security Administration office is located at 1470 Pantops Mountain Place and can be reached by telephone at 1-800-772-1213. You can find booklets online as well as a local office locator at the Social Security Administration homepage. If you haven’t already done so, you are encouraged to create an account with “my Social Security.”
  5. If you are older than 65, you will need to meet with a representative of the Social Security Administration Office mentioned in the above paragraph to sign-up for Medicare Part B. You will also need to take with you Form CMS-L564, “Request for Employment Information” indicating the date of your retirement with the University. The Form CMS-L564 may be obtained from your UVA HR benefits counselor. You will not be allowed to sign-up for Medicare Part B without the Form CMS-L564. For assistance in completing these forms, faculty may schedule an appointment with a UVA HR benefits counselor by contacting the HR Solution Center: 434-243-3344.
  6. If you are or will be 65 or older, you should enroll in Medicare A and B effective as of the 1st day of the month following the date of your retirement. For assistance regarding Medicare, faculty may schedule an appointment with a UVA HR benefits counselor by contacting the HR Solution Center: 434-243-3344.
  7. Review your pay slip and arrange to cancel any reductions or deductions, such as credit union loans. Call appropriate offices. If you need assistance, contact the University Human Resources Payroll Office through the HR Solution Center (434-243-3344) or via email at askhr@virginia.edu.
  8. Make certain that your chair/dean and supervisor is aware of your retirement date so that all necessary arrangements can be made. This is also time to remind your chair/dean of any prior arrangements you have made about continuing responsibilities, space, and other duties if you expect to remain active in your department after retirement.
    • Note that “re-employment,” even on a faculty wage basis, requires a 31-day break in service during a period the faculty member normally would have worked. For 9-month faculty, the 31 days begin August 25.
  9. Start reviewing the Faculty Departure Checklist. The checklist will assist you in making certain that you complete all the tasks you must complete prior to your retirement date. There are also a number of appendices to be completed if you answer affirmatively to any of the following questions:
    • Do you serve as a Primary Investigator (PI) on a grant/contract?
    • Do you maintain a research lab?
    • Do you conduct human subject research?
    • Do you intend to transfer equipment, data, or records?
    • Do you serve as a Webmaster or Listserv owner?
    • Have you disclosed inventions to the Patent Foundation or do you have pending/issued patents?
    • Are you involved in patient care?
    • Are you identified on a Technology Control Plan or participating in an export controlled project or activity?
30 Days to Your Retirement Date
  1. If you have not yet, start completing your Faculty Departure Checklist. The Faculty Departure Checklist indicates several actions and items that you must complete prior to your last day.
  2. If you are a State Conflict of Interest designated employee, complete and file a Statement of Economic Interests. Designated employees are to file if they are employed during any part of a filing coverage period up to their retirement date. The filing coverage period for the June 15th filing is November 1 of the previous year until April 30 of the current year. The filing coverage period for the December 15 filing is May 1 through October 31. Log into the State’s Conflict of Interest Disclosure System; you will find the link to the Statement of Economic Interests under “My Disclosures.” Contact the University COI Coordinator if you need assistance.
  3. Contact Information Technology Services (ITS) via email at accounts-access@virginia.edu to request that your UVA email account be kept active. It must be renewed annually. For an overview on how to keep and renew a UVA email account for retirees and emeriti, view the ITS webpage.
  4. Contact the University ID Card Office at 434-924-4508 to discuss the acquisition of a University Retired ID Card.
  5. Take advantage of your University Faculty Retirement Perks. Scroll down to the “Perks for Retirees” section of the linked UVA HR webpage for more information.
Administration