Health Insurance

Your appointment type and FTE in your post-retirement appointment will be the primary method of determining whether you are eligible for health insurance in your post-retirement appointment.  If the post-retirement appointment is not benefit eligible based on PEBB eligiblity rules, you may be eligible for continued health insurance coverage for a limited period of time under the Affordable Care Act (ACA).  

Your eligibility for health insurance coverage will be evaluated under both the PEBB and ACA eligibility rules and regulations:

  • PEBB Benefit eligiblity requirements:  Post-retirement position is at least .50 FTE.  Coverage will continue until the post-retirement position ends or the FTE is reduced below the .50 FTE.  Temporary Service (TS) appointments are not eligible for health insurance regardless of FTE.
  • Affordable Care Act (ACA) eligiblity requirements:  If you worked an average of .75 FTE during the ACA Measurement Period (October - September), you are eligible for coverage during the following Stability Period (calendar year), regardless of hour worked.  Employees in Temporary Service (TS) appointments are eligible for coverage under the ACA if they meet the requirements.  Click here for additional information on the Affordable Care Act.

For assistance in determining if you are eligible for health insurance benefits during your post-retirement position, contact Employee Benefits at (541) 737-2805 or by email at employee.benefits@oregonstate.edu.

Limitation to Hours Worked in Post-Retirement Appointments

OSU policy restricts the work hours of a returning retiree to no more than 1039 hours in a calendar year, regardless of the retirement plan the employee retires under; the age of the employee at retirement; or whether the employee/retiree is 'full Social Security age'. 

Depending on the employee's retirement plan, there may be additional restrictions to hours worked and/or the availability of funds from the pension program.

PERS Tier 1 & Tier 2 Members  (hired and/or became PERS member prior to August 23, 2003)

  • PERS limitation – hours do not total 1,040 hours or more in a calendar year;
  • PERS retirement contributions (employee or employer) will not be made on post-retirement earnings;
  • It is your responsibility to monitor/track your hours to ensure you do not exceed the hours limitation placed on you by PERS;
  • If you meet or exceed the 1,040 hours limitation and your employment extends into the next calendar month, your PERS pension will be stopped.  Your PERS retirement will be canceled and you will be returned to active service.

 

PERS OPSRP Members  (hired and/or became PERS member on or after August 23, 2003)

  • PERS limitation – 599 hours in a calendar year;
  • PERS retirement contributions (employee or employer) will not be made on post-retirement earnings;
  • It is your responsibility to monitor/track your hours to ensure you do not exceed the hours limitation placed on you by PERS;
  • If you meet or exceed the 599 hours limitation and your employment extends into the next calendar month, your PERS pension will be stopped.  Your PERS retirement will be canceled and you will be returned to active service.

 

Optional Retirement Plan (ORP) Members

An employee that meets the Plan's definition of a 'Retired Participant' has access to the funds in their ORP account.

If the employee does not meet the Plan's definition of a 'Retired Participant' the employee does not have access to the funds in their ORP account.

An ORP member becomes a 'Retired Participant' in the ORP program in one of two ways:

  1. Employee has separated from service after age 55 AND takes a partial distribution from their ORP account.  If the employee separates from service after age 55 but does NOT take a distribution of any type, they become an 'Inactive Participant' and will become a 'Retired Participant' after they take a distribution from their ORP account; OR
  2. Employee is a participant in a retirement incentive program, including but not limited to, tenure relinquishment, tenure reduction, or an early retirement incentive program.

Restriction of Work Hours to no more than 1039 hours in a calendar year is by OSU Policy.  The ORP does not authorize or limit how many hours a Retired Participant may work in each calendar year.  Instead, a Retired Participant who is rehired into a Qualifying Position will lose Retired Participant status and will reenter the plan as a new Active Participant (after a six month waiting period that is uninterrupted by 30 days or more). A Retired Participant cannot become an Active Participant during a period of post-retirement work or benefit provided through a retirement incentive program.

If an employee is not on a Tenure Relinquishment Agreement and they are working, the employee is an 'Active Partcipant' by Plan rules and will not have access to funds in their ORP account.

Employees working under a Tenure Relinquishment Agreement ARE considered a 'Retired Participant' through the end of the term of the Tenure Relinquishment Agreement and can access the funds in their ORP Account while on the Tenure Relinquishment Agreement. 

  • If the employee continues to work past the termination date of the Tenure Relinquishment Agreement, they will no longer meet the definition of a 'Retired Participant' and will no longer have access to the funds in their account.   
  • Employee may become an 'Active Participant' again in the ORP plan if they meet requirements of the plan, otherwise, they will be considered an 'Inactive Participant'.

 

What happens if I am rehired at an Oregon public university while I am retired under the ORP?

An ORP Retired Participant becomes an Active ORP Participant under the same terms as a new employee.

If an ORP Retired Participant is in a retirement incentive program, the Participant is not eligible to become an Active Participant until after the end of any post-retirement period of work. If the agreement provides, for example, a post-retirement appointment for each of five successive years after retirement, any work performed after the end of that 5 year period begins a new ORP waiting period, after which the Retired Participant may re-establish Active Participant status.

An ORP Retired Participant who re-enters the Plan is one who:

  • Is appointed to a Qualified Position (see definition in Section 1 of this Decision-Making Guide).
  • Serves a 6-month waiting period that is uninterrupted by more than 30 days; and
  • Establishes Active Participant status on the first of the month after completion of the waiting period; and
  • Is eligible for the contribution tier that is available to new employees on the date the Retired Participant is rehired; and
  • Is fully vested in both the Employer and Employee accounts if 50 years of age or older; and
  • Is eligible for an ORP distribution until Active Participant status is restored.