KCTCS Retiree

Retirement Planning

Planning for retirement is an exciting journey—and we're here to help you every step of the way. Whether you're just beginning to explore your options or you're nearing your retirement date, this section offers the guidance, tools, and checklists you need to make confident, informed decisions. From understanding eligibility and setting a timeline to healthcare options and completing paperwork, KCTCS is committed to making your transition smooth and stress-free.

Eligibility Requirements for KCTCS Employees Participating in 403(b) Retirement

Understanding your retirement eligibility is an important step in planning for the future. At KCTCS, we’ve designed clear criteria to help you determine when you can begin enjoying the benefits of retirement. Take time to review the requirements, and feel free to reach out to Human Resources if you have any questions or need guidance along the way.

  • The ‘Rule of 75’ is a key milestone in your retirement planning. If your age and years of service combined amount to 75 or more, you may be eligible to retire with full benefits.
  • For the purpose of calculating years of service toward retirement under KCTCS personnel policies, a faculty or staff member's hire date is determined by their total years of continuous service with KCTCS, the University of Kentucky (UK), and/or under the 18A/151B personnel policies.
  • To be eligible for KCTCS-sponsored retiree health benefits, your hire date must be before July 1, 2009. Employees hired on or after that date are not eligible for retiree health coverage under KCTCS Board of Regents Policy 3.7.

planning timeline and your responsibility

When you're ready to retire, notifying KCTCS is an important step to ensure a smooth transition. As an employee, it's your responsibility to inform your local Human Resources department of your retirement plans in advance, allowing ample time to finalize benefits, retirement paperwork, and other important details. We are here to support you every step of the way as you prepare for this exciting next chapter. Below are key steps to take and important responsibilities to keep in mind as you move forward with your retirement.

  • KCTCS Administrative Policies and Procedures 2.8.4 states that an employee must provide their intent to retire three (3) months in advance of their intended retirement date. This requirement may be waived by your local College President/CEO.
  • You must provide a written statement of your intent to retire to your local Human Resources (HR) Department.
  • If you are eligible for KCTCS-sponsored retiree health benefits, your college HR department will provide you with a packet of information and enrollment forms based on your age at the time of retirement. You will complete and return the enrollment forms to your college HR department.

acessing your retirement funds

After separating from employment, you may be eligible to access the retirement funds you’ve accumulated during your service. Depending on your plan, you can choose to leave your funds invested, roll them over to another qualified plan, or request a distribution. Our plan carrier representatives are ready to help you understand your options and make informed decisions for your financial future.

Your employment and vesting status will be updated with your plan carrier after your final paycheck and retirement contribution are processed. Once updated, you may request a rollover or distribution.

The Basics of Social Security and Medicare

Social Security:

The Social Security Retirement benefit is a monthly check that replaces part of your income when you reduce your hours or stop working altogether.

Before choosing your retirement date, you should contact the Social Security Administration (SSA) about 3 months before the date you would like to retire to make sure you understand the available options and to determine the best month in which to start collecting benefits.

For more information, you can visit your local Social Security office, call 1-800-772-1213 Monday through Friday between 8:00 AM and 7:00 PM, or go online at www.ssa.gov/prepare.

Medicare FAQs:

Where do I find information on Medicare benefits?

To learn more about Medicare Parts A and B, including when to enroll and the enrollment process, visit www.ssa.gov/medicare. To learn more and sign up for other parts of Medicare, visit www.medicare.gov.

Do I need to sign up for Medicare Part B while I am working and have active health insurance through KCTCS?

At age 65, most people in the United States should enroll in Original Medicare (Part A and Part B). However, since Part B has a monthly premium that must be paid, some people sign up for Part A only. They don’t enroll in Part B at age 65 because they are still working and are covered by an employer’s group health plan. You may qualify for a Special Enrollment Period and be able to delay signing up for Medicare Part B without a late enrollment penalty.

When should I sign up for Medicare?

If you are 65 at the time you retire, you must enroll in Medicare Parts A and B in order to enroll in the KCTCS Anthem Medicare Advantage PPO Plus Senior Rx Plan. You should begin the enrollment process at least three months prior to your retirement date to ensure there is no delay in enrollment or a gap in coverage.

What are the different parts of Medicare?

There are four parts to Medicare:

  • Part A (Hospital insurance) is paid for by a portion of the Social Security tax, so there is no charge to the retiree. It helps pay for inpatient hospital care, skilled nursing care, hospice care and other services.
  • Part B (Medical insurance) is paid for by the monthly premiums of the people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors' fees, outpatient hospital visits, and other medical services and supplies that are not covered by Part A. The premium is established each year and may change annually. After enrollment, your premium payment is automatically deducted from your monthly Social Security benefit.
    • Please note: Premiums for Medicare Part B are not included in your KCTCS- sponsored retiree health billings. Part B premiums are generally deducted from your Social Security direct deposit.
  • Part C (Medicare Advantage) plans allow you to choose to receive all your health care services through a provider organization, similar to a PPO. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C.
  • Part D (Prescription drug coverage) is voluntary, and the costs are paid for by the monthly premiums of enrollees and Medicare. Unlike Part B in which you are automatically enrolled and must opt out if you do not want it, you have to opt in to participate in Part D by filling out a form and enrolling in an approved plan.