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Iowa State University
Phased Retirement Program
Faculty, Professional and Scientific (P&S) staff or Merit employees of the University, who have attained the age of 57 with at least 15 consecutive years of service with the Board of Regents are eligible to request participation in the phased retirement program. There is no prescribed upper age limit for beginning phased retirement.
The phased retirement agreement and the phasing schedule will be developed between the employee and the department. Approval of the agreement and phasing schedule will occur at various levels within the institution, and no right to enter into a phased retirement agreement without approval by all officials as designated by the institutions is conferred by this policy. Further, a 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.
III. Schedule of Phasing:
An employee 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 two years with full retirement required at the end of the specified phasing period. If a two year phasing period is agreed upon an employee may not hold greater than a 65 percent appointment in the first year. For phasing periods of one year or less, or after the completion of the first year of a two year phasing period, the appointment cannot exceed 50%. The phasing period will be set by agreement between the institution and the employee with full retirement required at the end of the specified phasing period. The final day of participation in the Phased Retirement Program is the employee’s last day of active employment. Once phased retirement is initiated, employees may not return to full-time.
In the first year of a two year phasing period, the salary received will reflect the reduced responsibilities plus an additional 10 percent of the budgeted salary, had the person worked full-time. In the only or last year following the initiation of phased retirement, the employee’s appointment will be no greater than fifty percent, and the salary will be proportional to the budgeted salary had the person worked full-time.
Up to and including the last year of the phasing period, institution and employee contributions will continue for life insurance, health and dental insurance, and disability insurance* at the same levels that would have prevailed had the employee continued at a full-time appointment.
- Retirement contributions to TIAA 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 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 Employees Retirement System or Federal Civil Service System.
- Accrual of vacation and sick leave will be based on percentage of appointment.
VI. Access to Retirement Annuity Funds:
During the phasing period individuals may exercise their rights to access funds in their TIAA (or substitute plans) retirement accounts* in any manner permitted either by the retirement carrier or by Board policy but not to exceed 99% of their account balances.
Access to IPERS retirement funds is not possible under this policy.
VII. Duration of Program:
Subject to annual review, the program will expire on June 30, 2022, unless renewed by the Board prior to expiration. Employees are urged to discuss these options with their supervisor and/or make an appointment with the University Human Resources Benefit Office (number below).
For more information on IPERS call 800-622-3849 or visit their web site at http://www.ipers.org/members/index.html.
For more information on the Federal Civil Service System call the Extension HR Office, 1110 Extension 4-H Building, 1259 Stange Road at 515-294-3283
If you have additional questions about the Phased Retirement Program, please contact
University Human Resources at 515-294-4800.
* The date you withdraw money from the TIAA or substitute plan retirement account, your enrollment in the Disability Income Insurance plan terminates and you cease to be a participant in the Disability Income Insurance plan.