A 3-year phased retirement pilot program was approved on June 3, 2022. The 2-year phased retirement program approved on July 1, 2017, continues to be in effect with the Board of Regents.
Iowa Board of Regents Phased Retirement Programs
2-year Phased Retirement Program (approved July 1, 2017) and 3-year Pilot Phased Retirement Program (June 3, 2022, through June 30, 2025)
Program Details
Eligibility
Those employees who are eligible to negotiate with their department a schedule for phasing into retirement:
- Faculty members, professional and scientific, and merit employees that are holding regular appointments of 50 percent time or greater for at least 15 continuous years of service;
- and those employees 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.
| 2-Year phased retirement program | 3-Year Pilot Phased Retirement Program |
|
|---|---|---|
| Program Duration | Began July 1, 2017 and continues | June 3, 2022, to June 30, 2025 |
| Eligibility | Regular benefit-eligible Faculty, P&S, and Merit employees employed for at least 15 continuous years of service and who have attained the age of 57. | Regular benefit-eligible Faculty, P&S, and Merit employees employed for at least 15 continuous years of service and who have attained the age of 57. |
| Phased Retirement Period | Maximum of 2 years Phased Program | Maximum of 3 years Phased Program |
| Schedule of Phasing | If a two-year agreement: Year 1 - 50-65% Year 2 - 50% If a one-year or less agreement: Year 1 - 50% Full retirement is REQUIRED at the end of the specified phasing period. You may not extend your agreed-upon time. Once phased retirement is initiated, employees may not return to full-time. |
If a three-year agreement: Year 1 - 50-65% Year 2 - 50-65% Year 3 - 50% If a two-year agreement: Year 1 - 50-65% Year 2 - 50% If a one-year or less agreement: Year 1 - 50% Full retirement is REQUIRED at the end of the specified phasing period. You may not extend your agreed-upon time. Once phased retirement is initiated, employees may not return to full-time. |
| Compensation | In the first year of a two-year phasing period, the salary received will reflect the reduced percent time plus, at the discretion of the institution, up to an additional 10 percent of the budgeted salary had the person worked full time. In the only or last year following the initiation of the phase, the staff member's appointment will be no greater than 50 percent, and the salary will be proportional to the budgeted salary had the person worked full-time. |
In the first and second years of a three-year phasing period, the salary received will reflect the reduced percent time plus, at the discretion of the institution, up to an additional 10 percent of the budgeted salary had the person worked full time. In the only or last year following the initiation of the phase, the staff member's appointment will be no greater than 50 percent, and the salary will be proportional to the budgeted salary had the person worked full-time. |
| Benefits | Benefits: During the phased period, institution and staff member contributions will continue for life, health, dental, and disability insurance at the same levels had the staff member continued on a regular appointment. Accrual of vacation and sick time will be based on the percentage of appointments. Mandatory Retirement: UI contributions to TIAA will be based on the salary which would have been obtained had the individual continued a regular full-time appointment. As mandated by law, FICA contributions will be based on the employee's actual salary during the phased period. This is true for all contributions of those participating in IPERS. TIAA participants may access their retirement funds to assist in supplementing the loss of income that occurs when the person reduces their appointment through the Phased Retirement Program. |
Benefits: During the phased period, institution and staff member contributions will continue for life, health, dental, and disability insurance at the same levels had the staff member continued on a regular appointment. Accrual of vacation and sick time will be based on the percentage of appointments. Mandatory Retirement: UI contributions to TIAA will be based on the salary which would have been obtained had the individual continued a regular full-time appointment. As mandated by law, FICA contributions will be based on the employee's actual salary during the phased period. This is true for all contributions of those participating in IPERS.TIAA participants may access their retirement funds to assist in supplementing the loss of income that occurs when the person reduces their appointment through the Phased Retirement Program. |
Your Salary and Benefits
Compensation
The salary received will reflect the reduced percentage (between 50-65% for the first and/or second year depending on your agreed upon time period) based on the employee's annual budgeted full-time salary during the 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.
For example:
- An employee approved for a three-year phased period reduces to 60% for the first two years and, per program rules, will reduce to 50% for the third year. As a result, the employee will receive 60% of their annual budgeted full-time salary for the first two years and 50% of their annual budgeted full-time salary in the third year of phase as if they were still working full-time.
Salary Incentive for Year One and/or Year Two
At the department's discretion, a salary incentive of up to an additional 10% could be approved for the first two years 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 years one and two. 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 two years of phase only.
After the second year of an employee's three-year phased retirement, is completed, the employee must reduce time to 50%, and the additional salary incentive will no longer apply.
Benefits
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
Contributions:
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 accessing their funds while still employed. TIAA will contact the University Benefits Office to verify that the employee is participating in the Phased Retirement Program. Our office cannot complete that verification until the employee officially starts the phased program.
Sick and Vacation Accruals
The percentage of the phased employee's appointment will determine the rate of accrual and the maximum amount of sick and vacation leave available during the agreed-upon phased period.
For example, if employees phase at 50% for both years, their maximum amount and monthly accruals will reflect half of what they received as full-time employees.
Maximum Sick Accrual
The maximum accrual of sick leave is unlimited. Full-time employees accrue sick leave at the rate of 144 hours per year. However, once employees begin the phased agreement, they will only accrue sick leave at their new phased percentage.
For example, if an employee begins phasing at 65% for the first year, the employee will accrue sick leave at 65% of a full-time employee (144 hours * 65% = 93.6 hours).
Sick leave is not banked like unused vacation time. Once an employee retires from the University, they will be paid up to $2,000 of unused sick leave.
Maximum Vacation Accrual
For most employees, the maximum vacation accrual is 480 hours. However, when an employee enters a phased agreement, the vacation accrual maximum will reflect the new percent.
For example, if an employee enters a phased agreement at 50%, the system will reduce their maximum vacation accrual to 240 hours. The employee will continue to accrue vacation but only up to their new maximum, 240 hours. The employee will not lose the maximum accrued amount they earned while a full-time employee or any previously banked hours (e.g., Governor's additional paid leave)
System Process:
When a phased retirement agreement begins, the system will add the employee's accrued FTE vacation hours to any banked hours and apply the new percentage. The system will then recreate a new banked balance based on the new maximum.
Please note that an employee could be at their new maximum right away when beginning phased retirement, so to continue accruing vacation, the employee would need to use leave in that same month to keep accruing.
Once the employee officially retires from the University, they will be paid all hours, both banked and the regular hours accrued during the phased, as one total.
Request and Approval
Request
All requests for participation in the institution's 2-year or 3-year pilot program must receive approval from the university's appropriate administrative offices.
To be considered for the 3-year pilot, you must enter an approved phased retirement agreement between June 3, 2022, and June 30, 2025. The 2-year phased retirement program approved on July 1, 2017, will continue as usual.
If interested in one of the Phased Retirement Programs, 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.
The Phased Retirement program does not create a right for the employee, and the department may not approve the request to enter the program if it is not in the institution's best interest.
Request Form
Filling out Your Form Details and Help
Dates
12-month fiscal year faculty member, professional & scientific, SEIU, and merit staff:
- You may select any day you wish for your start or end dates, as long as it is a typical workday Monday through Friday and NOT on a university holiday (i.e., MLK Day, Christmas Eve, Memorial Day).
- The calculation of days between your start date and end date cannot exceed three years or 1,096 days (which includes your last day worked) for the pilot program or 730 days for the 2-year program.
- Please note that a Leap Year does not receive an exception.
9-month academic year faculty member:
- Academic year faculty members may not begin or end the phased period during the summer months.
- The start day of the phased period must be three working days before the first day of classes.
- The end date of the phased period must be at the end of an academic semester.
- If retiring after the fall semester, your employment and benefits continue until 12/31, which is the end date that will be listed on your phased agreement.
- If retiring after the spring semester, your employment and benefits continue until 6/30, which is the end date that will be listed on your phased agreement.
Length of Phased Period
The maximum length of a phased period can be up to three years total. An employee may request a phased period for less length.
Percent of Time to be Worked
- Three-year phased period: Years one and two can be in the range of 50-65% time worked, and the third year must be 50% time if not already done in the previous year.
- Two-year phased period: Year one can be in the range of 50-65% time worked, and year two must be reduced to 50% time if not already done in the previous year.
- One-year or less phased period: Time worked must be 50%.
Salary Incentive
At the institution's discretion, up to an additional 10 percent of the budgeted salary, had the person worked full-time, could be approved by departmental/unit leadership. The HR representative will need to confirm with leadership and update the request form before sending it to the University Benefits Office to create the official agreement.
What to Expect after Approval
After signatures of the administrative representatives for the employee have been obtained, the first step of the phased retirement program is completed. Next, the employee's departmental HR representative will email the employee's request form to the University Benefits Office at benefits@uiowa.edu.
University Benefits Office Initial Review
The Benefits Office will review the request and create the official phased retirement agreement between the employee and the University. If there is a need for additional information, clarification, or needed changes, Benefits will reach out to the employee and the HR representative directly.
Docusign eSignature
The DocuSign eSignature app is used to complete the signature process for the agreement. University Benefits will send the employee's phased retirement package/agreement to the HR representative first, where they will contact the employee and review the terms of the agreement, answer any questions the employee may have, and electronically initial the document once this has been completed.
DocuSign will move the agreement along to the next signee in line, which is the employee. The employee will have 45 days to consider the agreement before the offer is withdrawn. Again, once the eSignature of the employee has been obtained, DocuSign will send the agreement along to the next signee in line and so forth.
After the final signature is applied, DocuSign will then send everyone who applied an initial or signature a pdf of the fully executed agreement to their email. The University Benefits Office will retain a copy of the fully executed agreement; however, we encourage employees and departmental contacts to maintain a copy.