EARLY RETIREMENT PROGRAMS	No. 3-41	Rev. 6-4-92
		Date 5-14-80

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 be at least 57 years of age 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. Such 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 three months for processing and review time.

IV. DURATION

The early retirement program lasts for a maximum of five years and ends at the conclusion of the five-year period or the end of the month in which the retiree reaches age 65, whichever comes first.

V. STIPEND

The early retirement stipend depends on the age of the participant entering the program. Once approved, the stipend percent remains constant throughout the early retirement period. The stipend is 20 percent of the base salary just prior to retirement if the retiree is between the ages of 57 and 60. A participant entering the program at age 61 receives a 25 percent stipend, and a participant entering the program between age 62 and 65 receives a 30 percent stipend. The stipend is also limited as a bridge to Social Security payment to an amount not exceeding the predicted Social Security eligibility of the individual at age 65. The Social Security eligibility must be determined and verified by the Federal Social Security Office. The stipend is paid at the same pay intervals as the payroll for full-time employees.

VI. BENEFITS

Early retirees receive medical and dental coverage according to the same provisions and costs available to full-time employees. Other salary-based benefits such as base retirement contributions and disability coverage cease upon retirement except as they may apply to the portion of time in a phased retirement in which the employees continues employment.

VII. 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. The early retirement stipend is paid on the forfeited portion of the base salary just prior to retirement. The percent of the stipend is determined by the age at retirement as explained in IV above. Benefits for phased retirees are those listed in V above. The portion to be forfeited by the employee is negotiable. While it is anticipated that careful consideration will be given to requests for phased retirement, the nature of the working assignment may not lend itself to a reduced schedule and may preclude approval of the phased early retirement option.

VIII. 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 specified by law.

IX. 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.