Benefits Handbook for Faculty and Professional Research Staff

If You Leave the University

If You Leave Before Retirement

Health and Dental Coverage

Your health and dental coverage provided by the University (the NYU Point-of-Service Plan or an HMO; the Dental Assistance Plan) ceases at the end of the month in which you terminate employment, unless you take action to continue coverage.

You may continue health care coverage through either "COBRA continuation" or "conversion," which are both explained below. You may also extend your participation in the Dental Assistance Plan through COBRA.

• COBRA Continuation of Health and Dental Coverage—Under a federal law (the "Consolidated Omnibus Budget Reconciliation Act," or "COBRA"), if you leave the University before retirement for any reason except misconduct, you may continue your NYU group health and dental coverage for yourself and/or your family members (who were covered by the plan on the date of your separation) for a specific period, which is usually 18 months, when you terminate employment. You will be charged 102% of the full group rate premium for the type of plan you select (i.e. coverage for yourself only, or for yourself plus your spouse or one dependent child, or for your family). You also have the right to choose between the NYU Point-of-Service Plan and an HMO during any open enrollment period which falls in the continuation period under COBRA. You will receive notification of your continuation options under COBRA when the Benefits Office receives the paperwork finalizing your separation.

When your health care continuation coverage under COBRA ends, you may convert to an individual (non-group) policy which will be issued by the insurer (United HealthCare) or the HMO which provided you with coverage during the continuation period (see "Conversion of Health Care Coverage," below).

For more information, request a copy of Your COBRA Rights: Continuing Your Coverage, available from the Benefits Office.

• Conversion of Health Care Coverage—Rather than electing COBRA continuation coverage, or when COBRA continuation ends, you may elect to convert to an individual (non-group) policy which will be issued by the insurer (United HealthCare) or the HMO that provided you with coverage immediately prior to termination of employment. However, because such policies generally offer more limited coverage at higher cost than the NYU group coverage offered under COBRA, it makes sense to continue your coverage under COBRA if you are eligible. A conversion kit will be mailed to you when the Benefits Office receives the paperwork finalizing your separation (and if you continued coverage through COBRA, at the end of your COBRA continuation period).

Consult the Summary Plan Description of each plan for details regarding when group health and dental coverage ends.

Group Life and AD&D Insurance

You can convert from the University’s Group Life and Accidental Death and Dismemberment Insurance Plan to an individual term life insurance policy — without needing evidence of insurability — if you apply within 31 days after your separation date. You pay the full cost of this insurance. A conversion kit will be mailed to you when the Benefits Office receives the paper work finalizing your separation.

Supplemental Life Insurance

You may convert your Supplemental Life Insurance Plan to an individual term life insurance policy — without needing evidence of insurability — if you apply within 31 days after your separation date. A conversion kit will be mailed to you when the Benefits Office receives the paperwork finalizing your separation.

Employee Spending Accounts

If you leave the University, your pretax deposits will automatically stop with your last paycheck. You have until April 15 of the following year to file a claim for an eligible expense you incurred up to December 31 of the previous year. Any amounts left in your accounts after this date will be forfeited.

Health Care Account —After you leave, funds already contributed to your Health Care ESA may be withdrawn to pay claims incurred before the date your participation in the ESA ends. Funds remaining in your account will be forfeited, unless you elect to continue contributing to your Health Care ESA on an after-tax basis, which has no tax advantage. You may contribute to your Health Care ESA on an after-tax basis for up to 18 months under COBRA.

Dependent Care Account —After you leave, you can continue participation for the remainder of the plan year under COBRA and make the required premium payments.

Consult the Benefits Office if you want to continue HealthCare or Dependent Care ESA participation under COBRA.

Retirement Plans

This section applies to employees leaving NYU for any reason. NYU discontinues its contributions to your (Basic) Retirement Plan account. You may not make further contributions to your (Basic) Retirement Plan or Supplemental Tax-Deferred Annuity Plan accounts. You retain ownership of all funds in the accounts whether contributed by you or the University, as well as past and future earnings.

After you leave the University, funds remain invested and tax-deferred until you withdraw them. Then they are taxed as ordinary income. If you choose to receive payments before age 59 ½, such payments may be subject to a 10% tax penalty in addition to regular income tax. No 10% tax penalty applies if payment is made before age 59 ½ because of your death or disability, or upon retirement at age 55 or more. In addition, payments to a non-participant under divorce court order are not subject to the 10% penalty and are taxable to the recipient, rather than to the participant.

You have several options for receiving payments from the funds accumulated in your accounts. You may choose any combination.

• You may purchase a lifetime annuity (income you cannot outlive) with all or part of your funds. You may purchase a series of annuities taken out at different times.

• You may make full or partial withdrawals from your CREF and Vanguard (Basic) Retirement Plan investments. No more than 10% of your (Basic) TIAA accumulation may be withdrawn as a lump sum, though some or all may be paid out over a ten-year period. Lump sums are generally subject to 20% withholding toward your Federal income tax.

• You may roll over funds into an IRA.

• If you are between ages 55 and 70-1/2, you may receive the interest on your TIAA funds invested in the (Basic) Retirement Plan.

• You can withdraw your Supplemental Tax-Deferred Annuity Plan funds at any time.

You will need your spouse’s consent for any withdrawal that is not in the form of a 50% Joint and Survivor Annuity.

Tuition Remission

Whether or not tuition remission benefits continue depends on the circumstances under which you leave the University, as described below:

Resignation or Termination
Entitlement for you, your spouse/registered domestic partner and your dependent children ceases on your separation date. You may arrange to pay pro-rated tuition for the remainder of the semester.

Layoff (due to job abolishment)

Your Entitlement

• If you are laid off when you have completed ten or more years of continuous, full-time NYU employment, you will be eligible to complete any degree for which you were enrolled and matriculated at the time of layoff (subject to the same academic regulations as any other student).

• If you are laid off and you have less than ten years of service, your individual entitlement ceases at the end of the semester in which you are laid off.

Entitlement for Your Spouse and Children

• If you are laid off when you have completed ten or more years of continuous, full-time NYU employment, entitlement for your spouse/registered domestic partner and dependent children continues until completion of the degree program(s) in which they are enrolled at the time of layoff. Children under college age at the time of layoff will be eligible for four years of tuition remission toward the completion of a bachelor’s degree at NYU when they reach college age.
• If you are laid off and have completed three or more years of continuous, full-time NYU employment, entitlement for your spouse/registered same-sex domestic partner and dependent children continues until completion of the NYU degree program(s) in which they are enrolled at the time of layoff.

• If you are laid off before completing three years of continuous full-time NYU employment, entitlement for NYU tuition remission for your spouse/registered domestic partner and dependent children continues for one semester beyond the one in which you are laid off.

Retirement

If you meet the eligibility rules for retirement to be considered a retiree of the University, you may have additional benefits under the tuition remission program. (See If You Leave at Retirement)

Unemployment Insurance

Unemployment insurance is a New York State Department of Labor program. All determinations of eligibility are made by the Department of Labor, Unemployment Insurance Division, according to the New York State Unemployment Insurance Law. Applications and inquiries can be directed to any of the local Unemployment Offices, located in all five boroughs.

When you file your claim, indicate the following in the employer’s section:

New York University
Division of Human Resources — Unemployment Specialist
7 East 12^th Street, 2^nd Floor
New York, NY 10003

Layoff and Severance Pay (Professional Research Staff Only)

A member of the professional research staff (code 103) who is laid off may be entitled to benefits under NYU’s Severance Pay Plan. You are not entitled to severance pay if you leave the University under the following conditions:

• Voluntary resignation
• Discharge for cause
• Total and permanent disability
• Retirement

Severance Pay Plan Eligibility:

• If you have fewer than three years of continuous service as a full-time code 103, you are not eligible for severance pay.

• After three years of continuous service as a full-time code 103, you will receive one full week of pay per completed year of service for the first 10 years of service. For all completed years of service beyond 10, the formula is two full weeks of pay per year.

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If You Leave at Retirement

Resources for Retirement

A Checklist of Things to Think About
While many anticipate the freedom of retirement as time to do new things and see new places, some are overwhelmed by the practical decisions that must be made. Thinking about and planning for this important transition can help the process go smoothly. These questions may help you focus on some critical issues as you plan your transition:

• From what sources will you receive income after you retire?

• When should you begin receiving income from the NYU Retirement Plan?

• In what form do you want to receive income from the Retirement Plan (for example, is it better to purchase an annuity or withdraw cash from time to time, or both)?

• If you leave money in the Plan after you retire, how should you invest it? Should you keep it invested as is or change it?

• When should you begin to receive Social Security benefits?

• Do you need to provide for a spouse or other dependents after you retire?

• Will you need health coverage in addition to Medicare?

• Who will you need to cover on your health plan?

From time to time, NYU offers financial planning for retirement seminars designed to assist you in making these decisions. Check with the Benefits Office for details.

A Checklist of Things to Do
As you get ready to retire, this checklist can help you gather the information you need.

Contact the NYU Benefits office at 998-1270 to:

• Enroll in the Retiree Medical and Life Insurance Plans.
• Change life insurance beneficiaries (if you need or want to).
• Obtain Benefits Office signature authorizations on TIAA-CREF and Vanguard transfer and withdrawal forms.
• Get a letter stating you’ve completed ten years of service to secure a lifetime membership at Coles Sports Center.

Contact your local Social Security office (or call (800) 772-1213) to:

• Apply for Social Security benefits (generally, three months before you’re eligible). You’ll need to provide information, including a copy of your birth certificate — and, if you’re married, your spouse’s birth certificate and your marriage certificate — and Copy B of your W-2 forms for the last two years. The staff at Social Security will tell you what other information you’ll need.
• Ask when you’re eligible for Medicare — and when you need to apply.

Contact TIAA-CREF at (800) 842-2776/2777 to:

• Make an appointment to speak with a TIAA-CREF Benefits Counselor.
• Obtain annuity projections, purchase an annuity, or make withdrawals. To purchase an annuity or obtain an annuity projection with money in your Vanguard account, you’ll need to provide TIAA-CREF with a copy of your latest Vanguard statement.
• Request a cash withdrawal from CREF, or a transfer pay-out annuity to obtain cash from TIAA, or transfer funds to Vanguard or any other company.
• Change the way your account balance is invested.
• Change your beneficiary for your TIAA-CREF funds.

Contact Vanguard at (800) 523-1188 to:

• Request a cash withdrawal from your Vanguard account, or set up a systematic withdrawal with Vanguard, or transfer funds to TIAA-CREF or any other company.
• Change the way your account balance is invested.
• Change your beneficiary for your Vanguard Funds.

The NYU Retiree ID Card

You may continue to use your current ID card in retirement. You may also request an ID card for your spouse/registered domestic partner by contacting the Benefits office. The retiree ID card entitles you to the privileges described below.

Retirement Planning Materials and Seminars
NYU provides education to help you plan for retirement — such as University-sponsored seminars, videotapes, software, and publications.

Financial Planning for Retirement Seminars
Each academic year, NYU holds Financial Planning for Retirement seminars that discuss the following important retirement planning issues:

• How to determine and meet your retirement income needs
• How to develop an investment strategy for your retirement plan savings
• How to balance inflation, capital protection, and income needs at payout time

These seminars are advertised in special mailings. Call the NYU Benefits Office for details.

Financial Planning and Retirement Videotapes
A variety of financial planning and retirement videotapes are available from the Benefits Office on a one-week loan basis. Contact the Benefits Office for a current list of titles.

Retirement Planning Literature
The Benefits Office stocks several publications to help you focus on retirement planning issues.

TIAA-CREF and Vanguard on Location
Representatives from Vanguard and TIAA-CREF are available on campus from time to time. Call the Benefits Office for more information. TIAA-CREF also offers individual counseling.

Internet Resources

Vanguard—located at www.vanguard.com, this Web site includes an Account Access feature that allows you to monitor your Vanguard accounts. In addition, you can access a Retirement Resource Center that can help you plan for retirement, as well as manage your retirement assets.

TIAA-CREF—you can access this site at www.tiaa-cref.org to get useful information about annuity options and cash withdrawals. Available through the site is free retirement planning software that you can download to your personal computer. In addition, you can reallocate premiums and transfer funds at the site.

Receiving Payments from Retirement Funds
For information about receiving payments from the funds accumulated in your accounts when you retire, see If You Leave the University: Retirement Plans.

Benefits Available to You In Retirement

Eligibility for Retiree Medical and Life Insurance Coverage and Tuition Reimbursement
To be eligible to continue medical and life insurance coverage and tuition remission benefits as a retiree of NYU, an employee must meet one of the following criteria:

Retirement Eligibility Rules

• Rule of 70: You are eligible if your age plus years of continuous, full-time service equal 70 or more and you are at least age 55, with at least ten years of service; or
• You completed ten years of continuous, full-time service as of September 1, 1991, and you retire with 25 years of continuous fill-time service; or
• You were hired before September 1, 1991, and you retire at age 65 or older.

For more information, see the online brochure, Retirement Benefits At A Glance.

Disability Retirement Rule

• You are eligible if you have 10 or more years of continuous, full-time service and you are found eligible for Long Term Disability (TIAA)

Medical Coverage

If you meet the eligibility requirements, you can choose medical coverage through the NYU Retiree Medical Plan. You pay a $200 annual deductible, and then the plan begins to pay your eligible expenses at 80% of the reasonable and customary amount. Once your out-of-pocket cost for eligible expenses reaches $1,000, the plan pays eligible expenses at 100% for the rest of the calendar year. In addition, the plan features the Caremark retail prescription card program, as well as a mail order drug program. With the retail card program, a maximum 30-day supply will be dispensed from a participating Caremark CareSelect pharmacy accepting the Caremark card. With the mail order program, up to a 90-day drug supply can be dispensed from the Caremark Mail Order Pharmacy

You can select coverage for:

• Yourself only
• You and one other person (your spouse/registered domestic partner or child)
• Your family

Waiver of Coverage

You must return a completed NYU Retiree Benefits Election Form to the NYU Benefits Office within 31 days of the date you retire and become eligible for NYU Retiree Medical Plan coverage. Indicate on this form whether you elect or waive coverage under the NYU Retiree Medical Plan. If you waive NYU coverage because you enrolled in a Medicare HMO in your geographic area, you must provide the NYU Benefits Office with a copy of your Medicare HMO identification card. Later, if you choose to end coverage under the Medicare HMO, NYU will permit you to opt back into the NYU Retiree Medical Plan during the designated open enrollment period. If you do not submit your enrollment form for the NYU Retiree Medical Plan indicating enrollment or waiver within 31 days of your retirement, you will not be able to enroll at a later date.

Coordination of Benefits with Medicare

If you’re retired, you must apply for Medicare when you reach age 65. Since you are no longer employed by New York University, Medicare will be your primary medical coverage and your coverage from NYU will be secondary. This means that you first submit eligible medical expenses to Medicare for payment and then to the NYU Retiree Medical Plan. The NYU Retiree Medical Plan will then pay its benefit, minus any amount already reimbursed by Medicare.

Life Insurance

If you meet the eligibility requirements, you have the option to continue Basic Life Insurance Coverage. The NYU Benefits Office can tell you how much coverage you would have every year and how much that coverage may cost you.

Costs

You are billed for part of the cost of NYU medical coverage and life insurance coverage each quarter; premiums increase from time to time.

Voluntary Life Insurance

If you purchased Voluntary Life Insurance through NYU’s group plan insured by TIAA, you can continue that coverage in retirement. To do that, you need to convert your group coverage to an individual policy within 30 days of your retirement date. Contact TIAA or the NYU Benefits Office for details and cost to you.

Tuition Remission
Continuation of tuition remission benefits depends on your length of employment at NYU before retirement.

• If you meet the retirement eligibility rule at the time of your retirement: Your individual entitlement and that of your spouse/registered domestic partner and dependent children remains the same as it was before retirement. If you have dependent children under college age when you retire, they are eligible for tuition remission up through the doctoral level (tuition remission for graduate programs is taxable to the retiree).

• If you meet the "Disability Retirement Rule": Your individual entitlement and that of your spouse/registered domestic partner and dependent children remains the same as it was before retirement. If you have dependent children under college age when you retire, they are eligible for tuition remission up through the doctoral level (dependent tuition remission for graduate programs is taxable to the retiree).

• If you do not meet the "Rule of 70" or "Disability Retirement Rule": Your entitlement is the same as under "Resignation or Termination".

Benefits Which Cease Upon Retirement

Dental coverage, long-term disability coverage, employee spending accounts, and accidental death and dismemberment coverage end when you retire. You may continue dental coverage for up to 18 months after retirement under the provisions of a Federal law known as "COBRA." You pay the full cost of the coverage. Inquire at the Benefits Office for details.

Continued Health Coverage for Families of Deceased Retirees

A deceased retiree’s spouse/registered domestic partner and children who were covered by the NYU Retiree Medical Plan at the time of the retiree’s death may continue such coverage under the following conditions:

• The surviving spouse/registered domestic partner can extend coverage for his or her lifetime as long as coverage is continuous.

• The dependent children can continue coverage to age 19 (25 if the child is a full-time student).

University Facilities

The University encourages its retirees to take advantage of the University’s facilities during retirement. Some of these facilities offer special discounts.

NYU Book Centers Discounts—Present your retiree I.D. card to receive a 15% discount on books and supplies at the following University Book Centers:
NYU Bookstore, 18 Washington Place.
NYU Professional Bookstore, 530 La Guardia Place.
NYU Computer Bookstore, 242 Greene Street.

The discount does not apply to sale items, hardware, or software purchases at the Computer Bookstore.

Library Privileges—Full library privileges continue after you retire. Your retiree I.D. card allows you to use all NYU library facilities, including the music listening room and film library at the Avery Fisher Center for Music and Media.

Credit Union—You can continue membership in the NYU Credit Union, which gives you access to savings, checking and money market accounts, IRAs, and low-cost loans.

Campus Dining—You can purchase reasonably priced meals at:

• Rubin Hall, 35 Fifth Avenue.
• Weinstein Hall, 5-11 University Place.
• Hayden Hall, 33 Washington Square West.
• NYU Dental Center, 421 First Avenue.
• John Ben Snow Dining Room, Bobst Library (lunch only).

Coles Sports Center—If you retire with ten or more years of continuous, full-time service, you’re eligible for a free, lifetime membership in the Sports Center. Obtain a memo from the NYU Benefits Office, present it to the membership desk, and fill out the membership application. After that, you simply present your retiree I.D. card each time you use the facility. You’re also eligible for free tickets to home games. Contact the Sports Center at 998-2030 for ticket information.

Art Galleries—You may continue to visit the University’s galleries including:

• Grey Art Gallery and Study Center, 100 Washington Square East.
• 80 Washington Square East Galleries.
• Broadway Windows, northwest corner of Broadway and 10th Street.
• TSOA Photography Center Gallery, 721 Broadway: Main Gallery, 8th Floor; Gulf & Western Gallery, Lobby.

University Services and Discounts

As a retiree of NYU, You can continue to benefit from many discounts and special services available to employees.

• NYU Buying Club
• Faculty Mortgage Program

Discounts at Local Businesses—many local businesses offer discounts to persons who present their retiree I.D. card. When frequenting local businesses, ask if they offer an NYU discount.

Mail Services—Retired NYU employees can take advantage of special NYU rates on UPS overnight courier and UPS group shipping, as long as the packages are sent from NYU Mail Services at 547 La Guardia Place.

Wellness Programs—Check the listings in NYU Today for programs offered by NYU’s Office of Work-Life Services.

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If An Employee Dies

If an employee dies while employed at NYU, his or her family may continue certain benefits coverage as described below. Continuation of Medical Benefits depends on the employee’s length of NYU service.

• If the employee would have met the criteria to qualify for benefits continuation as a retiree of the University, then the surviving spouse/registered domestic partner and eligible dependent children who were covered under the employee’s medical plan at the time of death may continue benefits under the provisions available to spouses and children of retirees.

• If the employee would not have qualified to continue benefits as a retiree of the University, but has completed ten years of continuous, full-time employment with NYU at the time of death, the surviving spouse/registered domestic partner and eligible dependent children may continue medical benefits. Coverage for the surviving spouse can extend for life as long as coverage is continuous. Coverage for eligible dependent children can extend to age 19 (25 if a full-time student.)

• If the employee has not completed ten years of continuous, full-time employment at the time of death, the surviving spouse/registered same-sex domestic partner and eligible dependent children may continue NYU group health insurance benefits for the continuation period allowed by COBRA law. Generally, dependents of deceased employees may continue group health coverage for up to 36 months after the employee’s death. See "COBRA Continuation of Health and Dental Coverage" in If You Leave The University. For more detailed information, request a copy of Your COBRA Rights: Continuing Your Coverage, available from the Benefits Office.

There may be a cost for survivor continuation of benefits. For more information, contact the Benefits Office.

Conversion

Rather than electing COBRA continuation coverage, or at the end of the COBRA continuation period, survivors may elect to convert to an individual (non-group) policy which will be issued by the plan which provided them with coverage immediately prior to the employee’s death. However, because such individual policies generally offer more limited coverage at higher cost than the group coverage offered through NYU, it usually makes sense to extend group coverage through COBRA if you are eligible. A conversion kit will be mailed to the deceased employee’s home when the Benefits Office receives notification of death.

Group Life and Accidental Death and Dismemberment Insurance

In the event of the employee’s death, the family of the deceased should notify the NYU Benefits Office and furnish a copy of the death certificate bearing a raised seal so that the proceeds of the Group Term Life Insurance program and AD & D insurance provided by NYU can be paid to the beneficiary named by the deceased.

Supplemental Life Insurance

If the deceased employee participated in the Supplemental Life Insurance Plan, the beneficiary named by the deceased will need to complete a portion of the form and furnish a copy of the Death Certificate bearing the raised seal before proceeds can be paid.

Employee Spending Accounts and Commutation Expense Reimbursement Accounts

See information about Employee Spending and Commutation Expense Reimbursement Accounts under If You Leave Before Retirement. The same rules apply.

Retirement Plans

If the deceased employee participated in the NYU Retirement Plan, Supplemental Tax-Deferred Annuity Plan, the 457(b) Deferred Compensation Plan and/or the NYU Staff Pension Plan, death benefits may be payable to a surviving spouse or designated beneficiary. Check with the Benefits Office for further details.

Tuition Remission

Whether or not tuition remission benefits continue for survivors of the deceased employee depends on the employee’s length of continuous full-time service with the University. The criteria for eligibility are described below:

• If an employee dies and has met the retirement eligibility rule, entitlement to tuition remission benefits for survivors extends up through the doctoral degree.

• If an employee dies and did not meet the retirement eligibility rule but has completed five or more years of continuous, full-time employment, entitlement for the employee’s spouse/registered domestic partner and dependent children continues until completion of the degree program in which they are enrolled at the time of death. Children who are under college age at the time of the employee’s death will be eligible for four years of tuition remission toward completion of a bachelor’s degree when they reach college age, in addition to the above.

• If the employee dies and did not meet the retirement eligibility rule and did not have 5 years of service, entitlement for the employee’s spouse/registered domestic partner and dependent children continues until completion of the degree program in which they are enrolled at the time of death.

University Pay

If an employee dies, any pay owed to the deceased employee is normally paid to the employee’s estate. However, if the employee’s estate, including the pay due from the University, is less than $10,000, the pay from the University may be made directly to the employee’s surviving spouse or relative. Inquiries should be addressed to the Payroll Department.

Social Security Death Benefit

If a fully insured worker dies, a lump sum Social Security benefit may be paid to his or her eligible surviving spouse or child. The eligible survivor must apply for the benefit through the Social Security Office. The deceased need not have been receiving Social Security disability or retirement benefits. Social Security will make the final determination of eligibility for this benefit. Contact your local Social Security Office for more information.

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