Iowa Board of Regents Phased Retirement Program
Salary & Benefits
How to Apply
What to Expect
Schedule of Phasing
The phasing period is set by agreement between the institution and the individual, with full retirement required at the end of the specified phasing period. Once the phased retirement period commences, employees may not return to the same position, even if requested half-time.
- The maximum phasing period is two years, with full retirement required at the end of the specified phasing period.
- If a two-year phasing period is agreed upon and approved, the employee's first year of phase must be between 50% and 65% the first year and only 50% the second year.
- Phasing periods of one year or less, the appointment cannot exceed 50%.
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 those faculty and staff who have attained the age of 57.
Please note that even if you meet the above criteria, approval of your request is not guaranteed. Visit the Request and Approval section for more detailed information.
Your Salary and Benefits
The salary received will reflect the reduced percentage (between 50-65% for the first year) based on the employee's annual budgeted full-time salary during a two-year phasing period. If the approved phasing period is at or below one year, the salary will be no greater than 50% of the annual budgeted full-time salary.
- An employee approved for a two-year phased period reduces to 60% for the first year and, per program rules, will reduce to 50% for the second year. As a result, the employee will receive 60% of their annual budgeted full-time salary for the first year and 50% of their annual budgeted full-time salary in the second year of phase as if they were still working full-time.
Salary Incentive for Year One
At the department's discretion, a salary incentive of up to an additional 10% could be approved for the first year only. The salary incentive is unavailable if the phased period is one year or less.
Continuing with the example above, the employee's department approved a 10% salary incentive for year one. Even though the employee is now only working 60% time, with the agreed 10% incentive, they will receive 70% of their budgeted full-time salary instead of 60% for the first year of phase only.
After the first year of an employee's phased retirement is completed, the employee must reduce time to 50%, and the additional salary incentive will no longer apply.
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.
Mandatory Retirement Plans
The employee's contribution to their mandatory retirement plan will reflect their working percentage during their phased period for TIAA and IPERS participants.
UI contributions to TIAA will be based on the salary which would have been obtained had the individual continued a regular full-time position. As mandated by law, FICA contributions will be based on the employee's actual salary during the partial or pre-retirement period. The same is true for retirement contributions for those participating in the Iowa Public Employee Retirement System (IPERS) or Federal Civil Service System.
Accessing your funds during your phased period (TIAA only)
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.
The employee must contact TIAA to begin the process of accessing your funds while still employed. TIAA will reach out to the University Benefits Office to verify that the employee is indeed participating in the Phased Retirement Program. Our office cannot complete that verification until the employee has officially started the phased program.
Sick and Vacation Accruals
Accrual of vacation and sick leave will be based on the percentage of the phasing employee's appointment.
Request and Approval
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.
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.
What to Expect After Approval