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Summary of Changes

Retirement eligibility
The university will institute a 76-point retirement eligibility system so that employees will be eligible to retire with benefits when the sum of an individual’s age and years of service equals 76, with a 10-year minimum service requirement (effective Jan. 1, 2013). Beginning in 2015, one point will be added to the eligibility requirements every two years until 2021 when 80 points will be required to retire with benefits.

University contribution
The percentage contribution toward retiree health benefits being made by the university will be gradually reduced starting in 2013. The university will continue to pay a greater percentage toward the coverage of the U-M retiree than the percentage paid for coverage of the retiree’s dependent(s).

Future increases
In order to share future cost increases equitably between the university and retirees, the university’s contribution to retiree health benefits will remain a percentage of the total cost of coverage so that the dollar amount of the university contribution will grow as health insurance costs increase over time.

Learn more about how the changes may affect you>>