Jan. 21, 2010

Round two of RIO applications

by Erin Rosacker

As the application deadline nears its midway point, 18 employees have requested participation in the Retirement Incentive Option 2 program (RIO2). Human resource services will accept applications until March 31.

The health and dental benefits for retirees is determined by what coverage is in effect when an application is submitted. ISU Plan coverage changes made during last fall's open change period begin Feb. 1.

"We expect to see more once the benefits go into effect," said Mike Otis, HRS associate director.

Find out more

The HRS web site offers more information on the RIO2 program, including a Q&A (PDF), checklist and application form (PDF).

Eligibility requirements

Like the original program, RIO2 offers continued health and dental coverage. ISU will pay the combined employee and employer costs for five years, then normal retiree rates will be applied. Medicare coverage rates take over at age 65.

This second round of retirement incentives is available for ISU employees age 57 or older with at least 10 years of service. Employees on federal retirement programs must be 50 years old and have 20 years of service. ISU has 1,420 employees eligible for the new program, which requires them to retire by July 30.

Four of the 18 RIO2 applications have been denied. ISU approved 210 retirement applications from the first RIO plan. Those employees -- 99 professional and scientific staff, 95 merit staff and 16 faculty -- must retire by the end of this month.