Retirement Health Care Savings Plan
Full-time faculty and staff hired on or after January 1, 2010, are automatically enrolled in the Penn State Retirement Health Care Savings Plan (RHSP). The University makes monthly contributions of $144 to your Plan account while you are employed at Penn State. After meeting retirement eligibility criteria, you will use the accumulated savings in your Plan account to pay for the purchase of health insurance and other qualified medical expenses. The savings may be used for you or your eligible dependents.
It is important to note that most employers, including many institutions of higher education, do not offer continuation of healthcare benefits at retirement. The Penn State Retirement Health Care Savings Plan is a benefit that allows the University to continue its commitment to providing a health care benefit at retirement for incoming faculty and staff.
For more information about the Retirement Health Care Savings Plan, please refer to the attached fact sheet.
Retirement Healthcare Savings Plan Advantages:
- Money is set aside for your healthcare expenses at retirement while you are working
- Money accumulated in your account can be used for a variety of healthcare expenses, such as healthcare insurance, co-payments, deductibles, and long-term care insurance
- Healthcare savings plan can be used yourself, spouse, and eligible dependents
- Tax-free growth on any earnings on the contributions Penn State makes on your behalf
- Tax-free reimbursement of qualified healthcare expenses at retirement
- Online access to healthcare savings account, when you meet Penn State’s eligibility retirement qualifications.
- Check Status of Claims
- Submit a premium payment to health insurance provider
TIAA Retirement Healthcare Savings Plan Guide: This guide is intended to assist retirees with using their RHSP for eligible expenses after their retirement from Penn State University.
Retirement Healthcare Savings Plan Overview (Video)