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FeedbackPhased Retirement
Effective: Moved to Policy Library from UPM 3.3(10)
Contact: Benefits Office
Introduction
In May 2007, the Board of Regents, State of Iowa, approved a five-year renewal of the phased retirement program.
Policy Statement
Faculty, professional & scientific staff and merit employees, who have attained the age of 57 with at least 15 years of service, are eligible to request participation in the phased retirement program. The request must be made by June 30, 2012 unless renewed by the Board of Regents, State of Iowa, prior to June 30, 2012. There is no prescribed upper age limit for beginning phased retirement.
All requests for admission to the institution's Phased Retirement program must receive approval from the appropriate administrative offices of the institution by which they are employed. The program does not create a right for the employee and the request to enter the program may not be approved if it is not in the best interest of the institution. The Board of Regents will ratify entries into the phased retirement program as a part of the monthly Register of Personnel Changes.
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 five years with full retirement required at the end of the specified phasing period. At no time during the phasing period may an employee hold greater than a 65 percent appointment. After the completion of the fourth year, the appointment cannot exceed 50 percent. 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 to full-time appointment.
Up to and including the fourth year of the phasing period, the salary received will reflect the reduced responsibilities plus an additional ten percent of the budgeted salary, had the person worked full time. In the fifth year following the initiation of phased retirement, 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.
Up to and including the fifth year of the phasing period, institution and staff member contributions will continue for life insurance, health insurance, and disability insurance at the same levels that would have prevailed had the staff member continued at a full-time appointment. Retirement contributions to TIAA/CREF will be based on the salary which would have been obtained had the individual continued a full-time appointment. As mandated by law, FICA contributions will be based on the staff member's actual salary during the partial or pre-retirement period. The same is true for retirement contributions for those participating in the Iowa Public Employees Retirement System (IPERS) or Federal Civil Service System. Accrual of vacation and sick leave will be based on percentage of appointment.
During the phasing period individuals may exercise their rights to access funds in their TIAA-CREF (or substitute plans) retirement accounts in any manner permitted either by the retirement carrier or by Board of Regents policy, but not to exceed 99% of their account balances. The date an individual withdraws money from the TIAA-CREF or substitute plan retirement account, enrollment in the Disability Income Insurance plan terminates and the individual ceases to be a participant in the Disability Income Insurance plan. Access to IPERS retirement funds would not be possible under this policy.
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