CONSIDER YOUR RETIREMENT OPTIONS

The State Board of Regents has provided two programs, early 
retirement incentive and phased retirement, for employees who 
have worked for the university 15 to 20 years and want an 
alternative to the retire-at-65 option. The current programs 
run until June 30, 1997. Approval of the department head, 
dean or vice president, provost and board of regents is 
required before an employee can begin either program. 
Participants in the programs will continue to receive 
benefits beyond June 1997, until their benefits cease.


EARLY RETIREMENT INCENTIVE (ERI) 
Faculty, P&S and merit employees and university officials who 
have been employed for at least 15 years and are at least 57 
are eligible for this program. Employees must retire from 
active service at Iowa State once ERI begins.

Upon retirement, ERI employees continue to receive health and 
dental insurance until theyÕre eligible for Medicare, 
typically age 65. (Employees continue to pay the premium for 
continuation of family coverage.) The university will pay 
both the employee and the employer share of TIAA-CREF for 
three years, and the employer share of TIAA-CREF for another 
two years. The TIAA-CREF contributions cease when the 
employee is eligible for full Social Security benefits or 
five years after retirement, whichever comes first. The 
employee receives a $4,000 retiree life insurance policy if 
he or she is eligible under policy guidelines. Incentives end 
if the participant dies. Participants may begin drawing from 
their TIAA-CREF annuities.


PHASED RETIREMENT
Faculty and P&S staff employed by the board of regents for at 
least 15 years and who are at least 57 years old are eligible 
for ÒphasedÓ retirement. Merit staff are eligible if they 
have worked for 20 years. There is no prescribed upper age 
limit for beginning phased retirement.

Phased retirement can last up to five years. The maximum 
appointment is 65 percent of a position for four years and 50 
percent for the fifth year. For the first four years, 
compensation is at the level of appointment plus10 percent. 
During the fifth year, the salary is proportionate to the 
appointment.

Benefits, including medical, dental, life and disability 
insurance and contributions to TIAA-CREF, continue as if one 
is employed at a full-time rate. (Contributions to IPERS, 
FICA and Federal Retirement are at the reduced salary level.) 

Participants in the phased retirement program may begin 
receiving part or all of their TIAA-CREF annuity income.
Employees younger than 65 may transfer from phased retirement 
to the current ERI program with the approval of their 
department and the university. If the ERI program is not 
renewed by the board of regents, such transfers no longer 
will be an option for employees. 

When an employee is fully retired and no longer on phased 
retirement, contributions to TIAA-CREF cease, the term life 
insurance policy decreases to $4,000, and the retiree must 
purchase his or her own health and dental insurance, either 
through the university group policy plan or individually.
Employees are encouraged to discuss these two options with 
their supervisors or Ann Molison, retirement adviser. To make 
an appointment with Molison or to request a copy of a 
handbook that describes these two programs, call 4-3830.
Source: Ann Molison

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contact:  Ann Molison, Retirement Specialist, 88 Scheman, 
          (515) 294-3830
updated:  7-28-95