Iowa State University

Retirement Incentive Option Program

General Provisions

RIO Program Request Form

I. Eligibility:

Effective with approval of this program, an active employee of the university will be eligible based on the following criteria:

  • The employee must currently have a benefits-eligible appointment with the university;
  • Be at least 60 years old at the determined date of retirement. The age of the employee plus his/her years of continuous service must, at minimum, equal 70 at the determined date of retirement;
  • Agree to fully retire no later than June 30, 2021;
  • Not already have been accepted in/participating in another ISU retirement program (e.g., phased retirement);
  • Not have already received approval to retire or resign prior to the initiation of this RIO program.

II. Approval of Retirement Incentive:

Any eligible employee may express interest for the retirement incentive. The decision to express interest is voluntary and initiated by the employee. Meeting eligibility requirements or indicating interest does not guarantee an employee’s approval or acceptance into the RIO program.

As with past RIO programs, all final decisions for RIO requests are contingent on demonstrated cost savings or efficiencies. Cost savings and efficiencies may be achieved in a number of ways, including workforce reduction, new and innovative ways of conducting business, and/or new partnerships across multiple units/areas. For example, specific retirements may facilitate consolidation, program elimination, reduction of program scope, reorganization of units and possible other actions. The full savings may be realized outside of the three year timeframe of the program’s incentive payout.

Employees approved for the retirement incentive program would not be eligible to be rehired at the university while within the terms of the program they chose and its incentive period. Any exceptions would require the repayment of the value of the RIO incentives received.

III. Retirement Incentive Options

Eligible employees may choose one of three retirement incentive options in the proposal:

  • Option 1: Two Years of Retirement Contributions Plus Health/Dental Coverage. For two years after the Employee’s Separation Date, the University agrees to pay continued monthly TIAA or AIG VALIC employer contributions equivalent to that received by active employees over the same time period as well as Employee’s medical and dental coverage based on coverage as of the Separation Date, up to “self and spouse/partner” plan level, including employee and employer premiums. IPERS plans will require a one-time, up-front payout equal to two years of employer contributions equivalent to that received by active employees as of the Employee's Separation Date. Eligibility for medical and dental contribution under this option requires 5 years of continuous participation in the plans prior to retirement.
  • Option 2: Three Years of Retirement Contributions. For three years after the Employee’s Separation Date, the University agrees to pay continued monthly TIAA or AIG VALIC employer contributions equivalent to that received by active employees over the same time period. IPERS plans will require a one-time, up-front payout equal to three years of employer contributions equivalent to that received by active employees as of the Employee's Separation Date.
  • Option 3: Three Years of Health/Dental Coverage. For three years after the Employee’s Separation Date, the University agrees to pay Employee’s medical and dental coverage based on coverage as of the Separation Date, up to “self and spouse/partner” plan level, including employee and employer premiums. Eligibility for medical and dental contribution under this option requires 5 years of continuous participation in the plans prior to retirement.

In the event of the employee’s death, the university’s obligation to pay the benefit will cease on the first day of the month following the date of death. In the case of medical coverage, the employee’s surviving spouse or dependent may elect to continue coverage at their expense.

IV. Important Program Dates

  • The new RIO program would begin to accept employees’ expressions of interest in the program on August 3, 2020.
  • Deadline for expressing interest in RIO participation is March 1, 2021.
  • The latest retirement date allowed will be June 30, 2021.

 

Retirement Incentive Option Program Resources

 

Additional Information

 

Revised 08/2020