The Arizona Board of Regents Phased Retirement Program for Optional Retirement Plan Participants

Overview

This program enables eligible Optional Retirement Plan participants to reduce their workload and hours, remain employed for up to three years, and concurrently access their Optional Retirement Plan retirement account.

An eligible individual's participation is entirely voluntary, is subject to negotiation with the applicable dean/vice president, is established by a binding written legal agreement and is subject to approval by the provost. The dean/vice president retains the authority to balance college/division business continuity needs with requests for phased retirement.



Eligibility

To participate in the Phased Retirement Program, Optional Retirement Plan participants must 1) be at least 62 years old, 2) be fully vested in the Optional Retirement Plan and 3) enter into a written Phased Retirement Agreement with the University.


The Written Agreement and Duration of the Phased Period

The Arizona Board of Regents and General Counsels for each Arizona University are developing a standard written Phased Retirement Program Agreement to be used in every case. The Agreement records the specific terms of each participant's phased retirement period, workload, FTE, salary, and retirement date.

The maximum duration of a participant's phased retirement period is three (3) years. A period less than three years may be requested by the participant.

Once the phased retirement period has begun, participants may choose to accelerate retirement, but may not extend retirement past the date in the participant's written Agreement. Any plans for accelerated retirement will be shared as early as possible with the applicable dean/vice president to accommodate college/division business continuity needs. This allows for unforeseen circumstances, such as a participant's illness, that may prevent a participant from fulfilling the negotiated phased retirement period.


Reduced Workload and Reduced Hours

A Phased Retirement Program participant's FTE, salary and workload will be reduced at the beginning of the phased retirement period. The specific amount of reduction is subject to negotiation between the participant and the applicable dean/vice president.

Unless otherwise requested by the participant in writing, the FTE will be no less than .50 (20 hours/week) allowing the participant to retain University and Arizona Department of Administration benefits eligibility.


Tenured Faculty and Individuals with Continuing Status

A tenured faculty member or professional with continuing status irrevocably relinquishes all status rights at the end of the phased retirement period.

University Handbook for Appointed Personnel
Chapter 3.11.06, Effect of Retirement, Resignation and Part-time Employment on Tenure
Chapter 4.10.07 Effect of Retirement, Resignation and Part-time Employment on Continuing Status


Year-to-Year Professionals

Year-to-Year professionals continue to be subject to annual employment contract renewals during the phased retirement period. Participation in phased retirement by non-tenured/non-continuing personnel does not create a guarantee or implied agreement of continuous employment during the phased retirement period.


Access to Optional Retirement Plan Accounts During the Phased Retirement Period

Participants may withdraw funds from vested Optional Retirement Plan account(s) as desired during the phased retirement period.


Contributions to Optional Retirement Plan Accounts During the Phased Retirement Period

Both employee and employer contributions to the Optional Retirement Plan continue through the participant's retirement date in accordance with Arizona Revised Statutes 15-1628C and the Optional Retirement Plan.
May 30, 2008