Retirement Benefits

This page is intended to give you basic information about Benefits available at Retirement. You will need to meet with the Benefits Specialist to receive written information specific to you once you have submitted your retirement paperwork to the Human Resources Department.

The Board shall provide premiums for health insurance benefits under the following schedule if the employee has reached age 55 or over and elects to retire. All benefits stop at age 65 or when eligiblity for federal or state health insurance becomes available, however medical and dental (if the option is available) may be continued indefinitely at bargaining unit member's own expense. Service and age requirements and percentage of premiums paid are as indicated in the chart below:

Cash in Lieu of Benefits for Eligible Retirees

• Retirees who are eligible for health insurance and show evidence of being covered through a spouse's employer, may waive medical and receive up to $3500 per year in lieu of health benefits. The same percentage rates of premiums paid for retirees will be adjusted to the amount of cash retirees receive per year.

• Retirees must request to participate in the Cash in Lieu program during the District's standard Open Enrollment Period

• The Cash in Lieu benefit will be earned at the same rate as the retiree's earned prorated benefits entitlement (e.g. if an employee receives 40% of their medical cap, they will receive 40% of the negotiated Cash in Lieu benefit)

• Employees retiring at any other time during the school year will begin to accrue the Cash in Lieu benefit on the first day of the second month following retirement (e.g. if an employee retires December 15th, he/she will begin to accrue Cash in Lieu benefits on February 1st). If the employee becomes eligible July 1st or August 1st, Cash in Lieu benefits will begin September 1st when salary deductions occur in ten (10) month increments.

• Payment will be made once a year in December

• The Cash in Lieu benefit will be taxable

• The Cash in Lieu benefits will end when the retiree turns age 65

• The Benefits Department will run a supplemental payroll run for the Cash in Lieu payment which will automatically generate a W-2

• If there is a Qualifying Event, retirees can opt out of Cash in Lieu at any time during the year, but they can only switch into Cash in Lieu during the Open Enrollment Period

Life Insurance and Income Protection:  

Please note that district paid benefits such as the MetLife Insurance and Income Protection Insurance are NOT available during retirement and will end on the first of the month following your retirement date. There is a conversion option for the life insurance. If you are interested in converting the life insurance policy to a private policy please contact the benefits department for an application. SUSD will have to complete a portion of the application for the actual conversion so contact the benefits office to get this completed. Keep in mind that you MUST apply and pay the premium within 31 days after your coverage terminates, otherwise, this conversion option expires.

Voluntary Benefits: 

Any voluntary benefit you had as an active employee is NOT available during retirement.  HOWEVER:

• Accidental Death & Dismemberment (AD&D) is available via conversion to an individual AD&D plan—contact the benefits office ASAP for rate information and applications.  Keep in mind that you MUST apply and pay the premium within 31 days after your coverage terminates, otherwise, this conversion option expires. 

• American Fidelity Life or Cancer plans may be continued via “direct pay”. Call AF at 800-323-3748 for rate information, otherwise the plans will end when your regular active employee district paychecks end (please call the Benefits office to find out the exact ending date). 

• American Fidelity Flexible Spending Accounts are not available to continue during retirement. Please contact AF at 800-662-1113 or the Benefits Department to find out reimbursement details regarding your account (you are only able to submit receipts for reimbursement with dates of service in which you made contributions to the account— call for details).