Inside Iowa State
July 5, 1996
Regents extend early, phased retirement plans for five years
by Anne Dolan
The employee early retirement and phased retirement programs will continue, as currently set up, through the fiscal year 2002. The State Board of Regents approved the five-year extension at its June meeting. Both voluntary programs require administrative approval, but offer employees and departments flexibility in scheduling retirements and the university potential cost savings. The programs were scheduled to expire next June.
"The programs have been effective, in assisting both staff members to meet their own personal retirement objectives and departments to redirect resources in response to changing university needs," said Warren Madden, vice president for business and finance.
Since it first was established in 1986 for faculty and professional and scientific staff, the early retirement program has been used by 444 Iowa State employees. Merit staff participated for the first time in 1990.
The federal law that permitted mandatory retirement for tenured faculty who reach age 70 expired in 1993.
The early retirement program allows faculty and staff who have reached the age of 57 and completed 15 years of service with the university to pursue a retirement plan that includes a continuing paid-up life insurance policy, retirement contributions and health and dental insurance for an additional period of time.
The phased retirement option was established in 1982 for faculty and professional and scientific staff, and expanded to include merit staff in 1984.
Since 1982, 254 regents employees have participated in the phased retirement program and at the end of FY95, 63 employees still were in phasing periods.
The program allows faculty and P&S staff who have reached age 57 and completed 15 years of service with a university (age 60 with 20 years of service for merit employees) to pursue a phased retirement, completed in no more than five years. The plan provides continuing compensation for life, health and disability insurance; retirement contributions; sick leave and vacation accrual during the phasing period.
More information on either of the retirement programs is available in the Office Procedure Guide or from the Retirement Advising Office, 4-3830.
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