Benefits During Retirement

Eligibility

An employee must have reached the minimum retirement age for their Wisconsin Retirement System (WRS) employment category and must be vested under the WRS in order to be eligible for applicable City retirement benefits. For the General Category, you must be 55 years of age, and 50 years of age for the Protective Category. An employee who becomes disabled and separates from employment, and who is eligible to receive an immediate WRS annuity, Social Security benefit, or other public retirement fund annuity may also be eligible for certain City retirement benefits under a disability retirement. We recommend consulting with City Human Resources Benefits staff during your retirement planning process (and prior to giving notice of retirement) in order to determine your eligibility for City retirement benefits.

2024 Preparing for Retirement Presentation

Health & Dental Insurance

Employees who have health and/or dental insurance are eligible to continue the coverage in retirement. The employer contribution to the active employee health insurance premium will end at the end of the month in which the employee retires. Retiring employees must complete forms for continuing or canceling current benefits. You can find these forms near the bottom of this page or request them by contacting City Human Resources.  

Members of certain labor groups may be eligible to continue to receive an employer contribution to health insurance premium after retirement, per their respective collective bargaining agreements, and will be considered employer-paid annuitants.

Retirees may cancel health or dental coverage at any time. If dental coverage is canceled, there will be no future opportunity to re-enroll. Re-enrollment in health insurance after cancelation is subject to Employee Trust Funds' policy.

Retirees must enroll in Medicare Parts A & B at age 65 years. Failure to enroll will end eligibility for Employee Trust Funds-administered health coverage.

Learn more about health insurance at retirement.

Sick Leave

If the value is greater than $2000, sick leave time will be administered through Precision Retirement Group or another Post Employment Health Plan (PEHP). Value of $2000 or less will be paid out.

Vacation, floating holiday or compensatory time may not be placed in a PEHP or Prime Choice account with sick leave.

Learn more about sick leave at retirement.

Vacation & Holiday Leave

Retiring employees may use or be paid for vacation, floating holiday, and compensatory time hours for the year of retirement. An employee retiring on or after January 1 (who was in a paid status in the year of retirement) will receive all vacation, floating holiday, and compensatory time for the year of retirement, to either be paid or to be used day by day (use of vacation to remain on the active payroll may require that a minimum notice be provided to the employee's City agency, subject to the applicable employee benefits handbook or employment agreement). Vacation carried over from the previous year, usually less than two weeks, is also available to be used or paid out.

Vacation, floating holiday, or compensatory time paid out at retirement is not included as WRS earnings. Such time used to extend active employment is included as WRS earnings. The retirement date is the employee’s last day in a paid status, whether physically at work or using paid leave time.

Deferred Compensation

An employee participating in deferred compensation may choose to put the value of accrued paid leave time (other than sick leave with a total value that exceeds $2,000) in that account, up to the annual maximum. An employee wishing to defer leave payouts into their deferred compensation account will need to file a change of election form with Central Payroll by the end of the month prior to the month in which the final paycheck will be issued.

Life Insurance

An employee who retires before age 65 may maintain the coverage they had in effect prior to retirement or may reduce coverage to a lower level, by continuing to pay premiums at the same rates as non-retirees until age 65. Dependent coverage may continue with a retiree's continuing coverage, until there are no longer any eligible dependents. Bills for premiums will be sent quarterly by Central Payroll.

Retirees may reduce coverage at retirement or any time afterward. A retiree who drops all life insurance coverage may not re-enroll.

After Age 65

• If an employee retires before age 65 and continues life insurance coverage after retirement, upon reaching age 65 Basic coverage will continue at no cost (at a reduced percentage of the amount of coverage, indicated below) after they turn 65.
• An employee who retires after reaching age 65 will automatically have continued coverage in retirement.
• Supplemental coverage is not available to retirees over age 65.

For example, a 66 year old retiree whose basic coverage was $50,000 will be covered for 50% of their basic coverage, or $25,000, at no cost.

Life insurance beneficiary designation may be changed at any time.

Family members or beneficiaries need to know about continued coverage, and must contact Human Resources after the retiree's death. Human Resources will facilitate the claim.

Learn more about life insurance continuation at retirement.

Flexible Spending

An employee participating in flexible spending in the year of retirement may end regular deductions as of the final paycheck or may have the balance of the full year’s election amount deducted from the final paycheck.Eligible expenses may be incurred through December 31 of the year of retirement. Requests for reimbursement must be submitted no later than 90 days following December 31 of the year of retirement. Eligible expenses may be reimbursed up to a maximum of the amount deducted from the beginning of plan year through the final paycheck.

More Information

For more information, please see the Employee Benefits Handbook or Collective Bargaining Agreement for your compensation group. Contact your Payroll Clerk with questions specific to your position and/or compensation group.

Retirement Forms

Notice of Retirement
Local Employer Verification of Health Insurance Coverage (ET-4814)
Dental Insurance at Retirement
Life Insurance at Retirement
Flexible Spending at Retirement
Local 6000 VEBA Acknowledgment
Medicare Form CMS-L564: Request for Employment Information
Medicare Part B Application