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EARLY RETIREMENT PROGRAMS | No. 3-41 | Rev. 05-14-02 |
| Date: 05-14-80 | |||
OLD VERSION
I. POLICY
It is the policy of the University to make special early retirement incentives available to its full-time salaried employees who apply for the program, meet the eligibility requirements and receive approval from the Board of Trustees.
II. ELIGIBILITY
Full-time salaried employees who will have 15 years of full-time service and are within ten years of the Full Retirement Age (FRA) specified by Social Security on the date of the proposed retirement are eligible to apply for the early retirement program. Only full-time continuous service qualifies for years-of-service credit. Full-time service will include approved leaves of absence with pay such as sabbaticals. Hourly service is not credited.
III. APPLICATION AND APPROVAL
Forms for application will be made available at the Human Resources Office. Applicants for the program must make formal request through the designated approval channels and receive approval from the administration and Board of Trustees. The criteria upon which the application is approved or disapproved shall have a rational relationship to the legitimate needs, well-being, and overall mission of the University. Applicants applying for early retirement must apply early enough to allow for a normal and reasonable approval review cycle and a period of time for review of the contract specified by law. Typically, the retiree should allow at least four months for processing and review.
IV. DURATION
The duration of the early retirement program depends on the point at which the participant enters the program as shown on the table in Section VII of this policy. The program is designed as a "bridge" of medical and dental benefits to Medicare at age 65 and a stipend "bridge" to Social Security Full Retirement Age provided that neither medical/dental benefits nor stipend may exceed the limits shown in Table VII.
V. STIPEND
The early retirement stipend depends on the point of entry into the program. Once approved, the stipend percent remains constant throughout the early retirement period. As a bridge to Social Security, the stipend cannot exceed the predicted Social Security eligibility amount at the Full Retirement Age (FRA) specified by Social Security. The stipend is paid on the same pay schedule as the payroll for full-time employees.
VI. BENEFITS
Early retirees receive medical and dental coverage according to the table shown in Section VII.
Other salary-based benefits such as base retirement contribution, life insurance and disability coverage cease on the first day of the early retirement except as they may apply to the portion of time in a phased retirement in which the employee continues employment.
VII. TABLE OF STIPENDS AND HEALTH AND DENTAL BENEFITS
|
Point of Entry - Years to Full Retirement Age (FRA) |
Period during which the stipend will be paid (prorated among years) |
Annual Stipend (As a percent of the amount of base salary forfeited.) |
Health Insurance Premium (As a percent of the amount paid for a full-time employee) |
Dental Insurance Premium (As a percent of the amount paid for a full-time employee) |
|
9 to 10 |
7-years |
14.28% (Cannot exceed Social Security at FRA) |
University pays 71.4% |
University pays 57.1% |
|
8 to 9 |
6-years |
16.67% (Cannot exceed Social Security at FRA) |
University pays 83.3% |
University pays 66.6% |
|
7 to 8 |
5-years |
20% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
6 to 7 |
5-years |
20% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
5 to 6 |
5-years |
20% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
4 to 5 |
Lesser of 5-years or FRA |
20% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
3 to 4 |
Lesser of 4-years or FRA |
25% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
2 to 3 |
Lesser of 3-years or FRA |
30% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
1 to 2 |
Lesser of 2-years or FRA |
30% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
|
Less than 1 |
FRA |
30% (Cannot exceed Social Security at FRA) |
University pays 100% |
University pays 80% |
VIII. PHASED RETIREMENT OPTION
Phased retirement is regarded as a case of early retirement in which the retiree forfeits a portion of his or her full-time position. Each year of phased retirement exhausts a year of eligibility for early retirement. The total period in years of phased and total early retirement cannot exceed the period for which the stipend and benefits will be paid shown in Table VII. The phasing schedule is negotiated between the employee and the supervisor and approved through the same process as other early retirements. The early retirement stipend is paid on the forfeited portion of the base salary just prior to retirement. The percentages applied to the forfeited base salary to determine the stipend are shown in Section VII above. A proration of the health and dental benefit premiums shown in Section VII will be applied according to the particular phased
retirement plan approved for the employee.
IX. CONTRACT
Each approved early retirement shall be initiated by a contract signed by the early retiree and appropriate University administrators. The contract will explain the
protection provided early retirees and allow time for review as specified by law.
X. RIGHT TO AMEND OR TERMINATE PROGRAM
The Board of Trustees reserves the right to amend or terminate the early retirement program at any time, but no amendment or termination shall affect any participant retired under its provisions.