Retiree Insurance Eligibility and Funding

Clemson University acknowledges the important contributions made by long-term employees. In recognition of their service, and in partnership with the Public Employee Benefit Authority, eligible retirees may have access to insurance continuation into retirement. The following summarizes retiree group insurance eligibility and if the University may pay a portion of your retiree insurance premiums. Complete details can be found in the Public Employee Benefit Authority (PEBA) Insurance Benefit Guide (PDF).

Important Note! Clemson University does not determine and cannot confirm eligibility for Public Employee Benefit Authority (PEBA) Retiree Health Insurance. Eligibility for the state retiree insurance package is determined by PEBA, not Clemson University.

Eligibility for retiree group insurance is not the same as eligibility for retirement. An individual may be eligible for health, dental and vision coverage in retirement if:

  1. The individual is eligible to retire from the South Carolina Retirement System (SCRS) plan, the Police Officers Retirement System (PORS) Plan or the State Optional Retirement Plan (State ORP),
  2. The individual elects to retire from one of the above plans and terminates from all employment covered by a PEBA-administered retirement plan, and
  3. The individual's last five years of employment were served consecutively in a full-time position with an employer who participates in the state insurance program, i.e. Clemson University.

Determining retiree insurance eligibility can be complicated and depends upon a number of factors. Only PEBA can confirm your eligibility. It is very important to contact PEBA before making final arrangements for retirement.

Verify Your Eligibility: The Office of Human Resources recommends submitting an Employment Verification Record (PDF) form to PEBA 90 days before retirement to verify eligibility for retiree insurance. PEBA will send you written confirmation of your eligibility. PEBA does not confirm eligibility for retirement dates further out than six months.

As an active employee (non-retiree), Clemson University pays part of the cost of your health and dental insurance. When you retire, various factors determine if you pay all or part of your insurance premiums, including your years of earned service credit and the date you were hired into an insurance-eligible position. The chart below illustrates eligibility and funding guidelines for retiree group insurance.

Employees hired before May 2, 2008

Age

Established SCRS/ State ORP service credit

Earned service credit1 with participating employer

Premiums

Any

28 years

10 years

Retiree pays retiree share only

60 and older

10 years

10 years

Retiree pays retiree share only

60 and older

20 years (left employment before eligible to retire)

20 years

Retiree pays retiree share only (coverage begins when eligible for retirement)

55 to 60

25 years (does not apply to State ORP participants)

10 years

Retiree pays retiree share and employer share until age 60 or when 28 years of service would have been earned. Afterward, retiree pays retiree share only

Any if approved for disability

5 years

5 but fewer than 10 years

Retiree pays retiree share and employer share

Employees hired on or after May 2, 2008

Age

Established SCRS/ State ORP service credit

Earned service credit1 with participating employer

Premiums

Any

28 years

25 years

Retiree pays retiree share only

60 and older (or approved for disability)

At least 15 years

15 years

Retiree pays retiree share and 50 percent of employer share

60 and older (or approved for disability)

At least 5 years

5 years

Retiree pays retiree share and employer share

The following types of service do not count toward your earned service credit requirement for insurance eligibility: non-qualified, federal, military, out-of-state employment, educational service, leave of absence, unused sick leave or service with employers that do not participate in the state insurance program.

Verify Your Eligibility: The Office of Human Resources recommends submitting an Employment Verification Record (PDF) form to PEBA 90 days before retirement to verify eligibility for retiree insurance. PEBA will send you written confirmation of your eligibility. PEBA does not confirm eligibility for retirement dates further out than six months.

You are encouraged to confirm your eligibility with PEBA before retiring. After confirmation of eligibility, you must submit the necessary forms to enroll in retiree coverage - coverage does not automatically continue at retirement. There are many enrollment choices available to someone who is eligible for retiree group insurance. To discuss options specific to you, the Office of Human Resources recommends speaking with a Clemson University Benefits Counselor or with PEBA.  

You may enroll yourself and any eligible family members. As a retiree you will make new elections; you do not have to keep the same coverage or cover the same eligible family members you covered as an active employee. After PEBA processes your retiree insurance enrollment, PEBA will send you a letter confirming the coverage selected and the premiums due each month. You have 31 days from the date your retiree insurance becomes effective to make any corrections or changes to your coverage. Otherwise, you will have to wait until the next open enrollment period, which occurs every year in October or until a special eligibility situation to make changes.

If you receive a monthly benefit from a PEBA administered defined benefit retirement plan, PEBA deducts your health, dental and vision premiums from the monthly benefit payment. If you do not receive a monthly benefit from a PEBA-administered retirement plan, PEBA will send you a monthly bill for your retiree insurance premium.

To enroll in retiree insurance, you will need to confirm eligibility for retiree group insurance by completing an Employment Verification Record (PDF) and a Retiree Notice of Election (PDF) form. You should submit both to PEBA. Please submit these forms at least 31 days before your retirement date. This will provide PEBA with enough time to process your enrollment so your insurance coverage as a retiree starts the day your coverage as an active employee ends.