Retiring from the U of A

As a retiree, you can keep your health insurance with the Arizona Department of Administration (ADOA) (paying the full cost of ADOA insurance premiums) or enroll in retiree health insurance through the Arizona State Retirement System (ASRS), whether or not you have ASRS retirement (ORP Participants). Premiums will vary depending on whether you are Medicare-eligible or not. Compare these plans.

We encourage U of A retirees who are Medicare eligible to carefully evaluate all their healthcare choices, including both U of A retiree options, Medicare or other federal health plans, your spouse’s/partner’s group health plan, or a retiree group health plan with a previous employer. 

IMPORTANTWhereas the university offers health insurance to domestic partners of active employees, the State of Arizona does not recognize domestic partners as eligible dependents.  

Your tax liability during retirement all comes down to a few important factors, notably your:

• Filing status
• Retirement income sources
• Total annual income

Your yearly tax bill will affect how much you have to pay for your daily expenses, so it’s important to understand how your retirement income will be taxed. Understanding how taxes will affect your retirement income can help you consider ways to minimize your tax bill and maximize your retirement income.

Social Security and Medicare are US government programs subject to legislative change. This is a general overview.

A retirement letter is a letter of intent to retire. It's a resignation letter informing your employer of your intentions to leave the company. The only difference is that you're also requesting your retirement benefits with retirement. Remember that a retirement letter is a formal one, which may also go in your employee file. So, be sure to make it as straightforward and formal as possible.

Your separation date with the University of Arizona (the last day you are at work) and your ASRS/ORP retirement date cannot occur on the same day. Your retirement date may be as soon as the next calendar day after your university separation date.

• ASRS Application for Retirement Benefit
• Federal W4-P Tax Withholding Certificate for Pension OR Annuity Payments
  • Form W‐4P is for U.S. citizens, resident aliens, or their estates who are recipients of pensions, annuities (including commercial annuities), and certain other deferred compensation. Use Form W‐4P to tell payers the correct amount of federal income tax to withhold from your payment(s).
• Arizona A4-P Annuitant’s Tax Withholding Form
  • Residents who receive regularly scheduled payments from payments or annuities complete this form to elect to have Arizona income taxes withheld from their payments.  

Complete an online retirement application that walks you through the options and provides a running tally of your benefit estimate on every election you make. You may submit your ASRS retirement application electronically to ASRS as early as six months before your University of Arizona separation date. Your retirement will not be effective until ASRS receives all the required forms.

The ASRS website has a generic pension calculator where you can estimate your benefits. To access your personalized information, register for an online myASRS account. ASRS also conducts a series of group seminars, either online or at the Tucson or Phoenix offices. You can also schedule an individual appointment with an ASRS representative.

Meet with the investment provider for your ORP (Fidelity or TIAA) to discuss distributions and rollover options. Your representative will complete your retirement distribution request with you.

If you have a Voluntary 403(b) Plan and/or 457 Deferred Compensation Plan account, contact your investment provider directly for information regarding distributions and rollovers.

• If applicable, ensure that your Social Security and Medicare applications were processed.
• You received your Medicare Card or a letter verifying the effective start date of insurance coverage.
• You received a letter from Social Security verifying the effective start date of your Social Security payments.

As a retiree, you can keep your health insurance with the Arizona Department of Administration (ADOA). However, you will be responsible for paying the full cost of ADOA insurance premiums with no U of A employer contribution.

Alternatively, you can enroll in retiree health insurance through the Arizona State Retirement System (ASRS), whether or not you have ASRS retirement (ORP participants). Premiums will vary depending on whether you are Medicare-eligible or not. Compare these plans.

We encourage U of A retirees who are Medicare eligible to carefully evaluate all their healthcare choices, including both U of A retiree options, Medicare or other federal health plans, your spouse’s/partner’s group health plan, or a retiree group health plan with a previous employer. 

IMPORTANTWhereas the university offers health insurance to domestic partners of active employees, the State of Arizona does not recognize domestic partners as eligible dependents.  

You may elect COBRA to continue contributing on an after-tax basis through the end of the current plan year. 

If you do not elect COBRA, you may submit claims for expenses incurred prior to your retirement date, up to the amount you contributed before your retirement date.  

Learn more about COBRA (Department of Labor)

The Retiree Accumulated Sick Leave (RASL) program is maintained and administered by the Arizona Department of Administration (ADOA) and the General Accounting Office (GAO).

RASL is a benefit offered to state employees who have amassed 500 or more unused sick leave hours. You can receive a payout for part of the value of that time upon retirement. Regular RASL payments are paid in three annual installments and are considered taxable income. View the Deferred Compensation Calculator.

To apply, complete and submit the following forms and submit to Human Resources; they will complete the employer sections and forward your forms to the GAO. Please allow sufficient time for processing.

• RASL Application
• A-4 State Tax Withholding form
• W-4 Federal Tax Withholding form
• You can direct your first year’s RASL payment into a 457 Deferred Compensation Plan account. You must indicate this election on the application form.

Submit the completed forms to HR either by upload or mail:

• Upload your forms to HR: Secure Document Upload
  • Label your file as Employee Last Name, First Name (e.g., Smith-John-RASL-application)
  • Notify HR Solutions by email when you upload/mail your RASL Forms
• Mail your forms to HR
  • 888 North Euclid Avenue #217, Tucson, AZ 85721

Have more questions about RASL? Review RASL Frequently Asked Questions.

Official Retirement Eligibility

Official U of A retirement status (“Official R”) is granted to retiring employees who meet the following qualifications:

• You are considered in retirement status by receiving a distribution from a State of Arizona retirement program (for U of A employees ASRS or ORP) no later than 31 days of separating from employment.;
• You are at least 50 years of age (university peace officers may be under age 50);
• You have completed five years of continuous, benefits-eligible employment in the Arizona University System (including approved leave of absence or long-term disability) immediately preceding retirement and
• You have not been terminated for cause by the university.

Benefits of "Official Retirement"

If you meet these eligibility requirements, you have access to the following benefits designed to facilitate your continued affiliation with the University of Arizona:

• A free parking permit for pre-defined locations
• Retain U of A email address (must opt-in within 60 days after retirement)
• Discounts at U of A BookStores and season tickets for athletic events
• University Library loan privileges
• Membership in the University of Arizona Retirees Association (UARA)
• Medical and dental insurance through the Arizona Department of Administration or the Arizona State Retirement System
• Qualified Tuition Reduction Program and Domestic Partner Tuition Program participation for yourself and eligible family members

Your university email address will be deactivated 60 days after you retire unless you take action to retain or terminate it before then. If you're eligible for Official Retirement and wish to retain your university email address, you must opt-in to have your account converted to a CatMail account. You can do this before or within the 60-day grace period after retirement.

Go to UITS Account Management, login, then click "Retiree Email Opt-In" (left-hand side) to opt in (or out).