Those employees who are eligible to negotiate with their department a schedule for phasing into retirement:
- Faculty and staff employed by the Board of Regents for at least 15 years;
- and who have attained the age of 57
All requests for admission to the institution's Phased Retirement Program must receive approval from the university's appropriate administrative offices.
If interested in participating in the Phased Retirement Program, the employee will begin by filling out the Request to Participate in Phased Retirement form and work with their Human Resources representative to discuss options and retrieve the necessary approvals from your department and unit leadership.
Schedule of Phasing
A staff member may reduce from full-time to no less than a half-time appointment either directly or via a stepped schedule.
The maximum phasing period will be two years, with full retirement required at the end of the specified phasing period.
- If a two-year phasing period is agreed upon, an employee may not hold greater than a 65 percent appointment in the first year.
- For phasing periods of one year or less, or after completing the first year of a two-year phasing period, the appointment cannot exceed 50%.
The phasing period will be set by agreement between the institution and the individual, with full retirement required at the end of the specified phasing period. Once phased retirement is initiated, employees may not return full-time.
In the first year of a two-year phasing period, the salary received will reflect the reduced responsibilities.
For example, an employee approved for a 2 year phased period reduces to 60% for the first year and 50% for the second year. The employee will receive 60% of the full-time salary they were receiving before entering into phased retirement.
At the discretion of the institution, up to an additional 10 percent of the budgeted salary, had the person worked full time, could be approved by departmental/unit leadership.
Continuing with the example above, the employee's department approved the salary incentive for year one of 10%. Even though the employee is only working 60% time, with the approved 10% incentive, they are receiving 70% of their full-time salary.
The staff member’s appointment will be no greater than fifty percent in the only or last year following phased retirement. The salary will be proportional to the budgeted salary had the person worked full-time.
Health, Dental, Life, and Disability Insurance
During the phased retirement period, the university and staff member contributions will continue for health, dental, life, and disability insurance at the same levels that would have prevailed had the staff member continued a regular full-time appointment.
TIAA and IPERS Mandatory Retirement Plans
The employee's contribution to their mandatory retirement plan will reflect the percentage they are working during their phased period. However, the university's contributions to TIAA will continue as if the employee is still working 100 percent. The same is true for retirement contributions for those participating in the Iowa Public Employee Retirement System or Federal Civil Service System.
FICA contributions will be based on the staff member's actual salary during the partial or pre-retirement period as mandated by law.
An individual participating in this program will be allowed access to their retirement funds to supplement the loss of income that occurs when the employee reduces their appointment down to 50% through 65% time, the maximum percentage permitted by the program.
Sick and Vacation Accruals
Accrual of vacation and sick leave will be based on the percentage of appointments.
Duration of Program
Subject to annual review, the program will expire on June 30, 2022, unless renewed by the Board before expiration.