Retirement Health Care Savings Plan
Starting January 1, 2010, Penn State is changing its approach to providing retiree healthcare benefits. All faculty and staff hired prior to that date will continue to be eligible for continuation of healthcare benefits after retirement under the provisions of HR54.
Full-time faculty and staff hired or rehired after January 1, 2010, will be enrolled in the Penn State Retirement Health Care Savings Plan. The University will make monthly contributions to the savings plan while working at Penn State. After meeting retirement eligibility criteria, you will use the accumulated savings in your healthcare savings plan to pay for the purchase of health insurance and other qualified medical expenses. The savings may be used for you and your eligible dependents.
It is important to note that the majority of employers, including many institutions of higher education, do not offer continuation of healthcare benefits at retirement. The Penn State Retirement Healthcare Savings plan is a new approach that allows the University to continue its commitment to providing a healthcare benefit at retirement for incoming faculty and staff.
For more information about this new retirement healthcare savings plan, please refer to the fact sheet.