Insurance & Other Benefits in Retirement

Employees retiring from the University of Illinois System (System) will be notified of specific benefits termination information once their home department completes the separation paperwork.

If you do not annuitize and instead take a lump sum payment from SURS, then your coverage will terminate at midnight on the last day of active employment. If you annuitize, you must follow the guidelines below, or your coverage will terminate at midnight on the last day of active employment, and retiree benefits will not be effective until the beginning of the following month. In order to prevent a gap in benefits coverage, it is important that you follow the guidelines listed below.

  • Civil Service employees - You must work through the 16th day of the month prior to your retirement date in order to transition with no break in coverage.
  • Academic Professional employees - You must work through the 15th day of the month prior to your retirement date in order to transition with no break in coverage.

Note: Employees may not extend the date of separation/retirement by using accrued vacation leave benefits.

Health, Dental, and Vision Insurance

Coverage continues and premiums may be paid by the State and/or member. If you are age 65 or older at retirement, contact the Social Security office 60 days prior to retirement to ensure proper coverage.  For further information, please see Medicare Information.

Basic Life Insurance

If retiring before age 60, life insurance continues at 100% of salary until age 60. If retiring at age 60 or later, life coverage immediately decreases to $5,000. Premiums are paid by the State. Amount of coverage lost in excess of $5,000 can be converted to an individual plan directly with the insurer.

Supplemental 403(b) Retirement Plan

Employee contributions stop at retirement. Withdrawals of pre-tax and Roth (after-tax) funds can be delayed until as late as age 72 when the IRS required minimum distribution must begin.

Leave Payout (Terminal Benefit Payout)

If you will receive a vacation or compensable sick leave payout, you may direct a portion of your payout into either the 403(b) or 457 plan. You may use the Terminal Benefits Net Pay Calculator to calculate an estimate of the net pay you will receive upon termination of employment with the System.

You must contact University Payroll and Benefits (UPB) at least 60 days prior to separating from the System in order to arrange this deferral. An estimate of your payout must be completed by your HR representative or business manager using the Benefits Payout Deferral Worksheet and emailed to UPB.

You cannot extend the date of your separation using accrued leave time. Any applicable benefits coverage will end at 12:01 a.m. following your last day of work.


The University of Illinois System permits employees to defer a portion of their vacation and compensable sick leave payouts after separation from the University to a University 403(b) or State 457 plan. To make a deferral, you must contact University Payroll & Benefits (UPB) on or before 60 days prior to your last day of employment at 217-206-7144 or

Retiring Faculty Salary Considerations

If you are a 9/12 or 10/12 faculty and you are retiring earlier than August 15, your Dean’s Office will make pay adjustments based on contract length to ensure full contractual salary is paid.

Technology Access

Retiree’s UIS email account will remain active without any additional action.

Retirees do not have access to software licensing such as Office or Adobe.

Library Access

Retirees may access library services by filling out our request form.