Planning to Retire from OUSD

Congratulations on reaching this incredible milestone! Transitioning into retirement is an exciting journey, and while there is much to look forward to—from travel to new hobbies—maintaining your health remains the top priority.

Navigating the shift from employee benefits to retiree benefits requires careful timing. Here is your essential guide to ensuring a smooth transition.

The "Working Senior" Rule: Medicare, Social Security and Age 65

One of the most common points of confusion involves the age of 65.

• Active Employees: If you are 65 but still actively working, you are not required to apply for Medicare. You are exempt until you officially separate from the District.

• Retiring Employees: When you are planning to retire, you must coordinate with Social Security 3 months prior to your retirement/separation date. Failing to do so can result in significant, lifetime financial penalties imposed by the Social Security Administration.

Coordination with Medicare (For those 65+)

If you will be 65 or older when you retire, you must coordinate your District coverage with federal benefits to avoid gaps.

• Medicare Part A: You should sign up for Part A within 3 months before your 65th birthday, even if you are still working. It generally has no cost.

• Medicare Part B: You do not need Part B until your OUSD active coverage ends. Your Part B effective date should be the first day of the month following your last day of active District coverage.

• Coverage End Dates:

  • OEA Members: If you work the full school year, benefits remain active until August 31st.

  • Non-OEA Members: Benefits end on the last day of the month in which you retire (e.g., retire June 10, coverage remains active until June 30 of the same year).

• If you have any questions about your last check, vacation and/or sick leave payout, reach out to Payroll@ousd.org.

Your Retirement Preparation Checklist

Start these steps as soon as you have confirmed your retirement date:

1. Confirm Pension Benefits: Contact CalSTRS (Certificated) at 800-228-5453 or CalPERS (Classified) at 888-225-7377. Note that these are your pension funds, not your health benefits.

2. Educate Yourself: Register for a Medicare 101 Webinar. Understanding how your District-exclusive retiree plans interact with Medicare is a major advantage.

3. Formalize the Date: 

   1. Notify your supervisor of your impending retirement date

   2. Submit the official Separation Form to alert the Talent Division.

4. Review the Costs: Check the current OUSD Retiree Health Benefit Rates to plan your budget.

5. Connect with Benefits: Attend the Weekly Drop-in Hours on Thursdays from 3:30 PM – 4:30 PM via Zoom.

   1. If that time does not work for you, contact the Benefits team to set up a different time to meet

Managing Financial Accounts

The Mandatory Benefits Meeting

Retiree enrollment is not automatic. You must meet with a Benefits Representative to discuss:

• Medicare eligibility and timelines.

• Dependent coverage options.

• The difference between COBRA and Retiree Benefits. (Note: While you will receive a COBRA notice by law, most retirees find the Retiree Plans more advantageous for long-term use).

If...

• You leave the District without enrolling onto benefits, you cannot come back to enroll at a later time.
• You decide to use an outside insurance provider for medical and only take OUSD dental and/or vision, you cannot come back to enroll onto our medical plans at a later time.
• You are 65+ and do not have your Medicare in place at the time of retirement and you wish to remain on OUSD benefits, you will need to enroll onto the Early Retiree plan to bridge the gap until your Medicare becomes active. At which time, you will need to bring proof of eligibility to OUSD the month BEFORE your requested effective date to enroll onto a Medicare advantage plan.
• You enroll onto the OUSD Retiree Health Plans, you are eligible to keep them until you decide to terminate (not withstanding any other issues with eligibility and/or premium payments)
• You enroll onto OUSD Retiree Health Plans, please DISREGARD the COBRA notice you will receive. COBRA notices are sent to ALL Employees who separate from the District. COBRA, while slightly cheaper, is only for 18 months for most. Please see a Benefits Rep if you require more information.

Contact & Support

If you have questions regarding your final paycheck, vacation, or sick leave payouts, please contact the Payroll Department. For all health benefit transitions, the Benefits Team is here to help.

• Drop-in Hours: Thursdays, 3:30 PM – 4:30 PM (Zoom)

• OUSD Benefits Department

A Final Word of Advice

Don't wait until your final week to reach out. Meeting with a representative at least three months prior to your date ensures you won't face a stressful gap in coverage or unexpected penalties.