Transitions Phased Retirement Program

• Updated: May 2010
• Primary Contact: See Contacts Section.

The University’s Transitions Phased Retirement Program (Transitions Program) is a voluntary internal University retirement program provided to tenured faculty members and continuous academic professionals. The Transitions Program is designed to (1) support tenured faculty and continuous academic professionals as they plan for life after retirement and (2) to help colleges and campuses plan for change by providing compensation and other forms of support in return for tenure or continuous appointment resignation. This program requires the faculty or continuous academic professional to reduce their work effort for a period of two years. Based on an annual 100 percent appointment, the leave without salary during the phased retirement must be for at least 25 percent and not more than 75 percent time. The individual must terminate employment and surrender tenure or rights to continuous appointment two years after the commencement of the phased retirement. Permission to offer this option must be obtained from the unit administrator, dean or senior administrator, and Office of the Vice President for Human Resources.

Scope

Eligibility

Only tenured faculty members (94xx; P appointment type) and continuous academic professionals (97xx, 9621-9630; G appointment type) with appointments of at least 75 percent on a nine-month or greater basis are eligible for the program. Employees must be at least 65 years of age with a minimum of 5 Years of Service on their Last Day of Employment. Tenured faculty and continuous academic professionals who are on federal appointment with federal health benefits are not eligible for this program.

Deadline for Application

Agreements under this policy must be fully executed and received no later than June 30, 2010.

Termination of Employment

The individual must terminate employment and surrender tenure or rights to continuous appointment on the last day of the fiscal year following the Last Day of Regular Appointment (May 27, 2012 for B-term appointments and June 17, 2012 for a-term appointments). The Last Day of Employment must be specified in writing and must be mutually agreed upon by the faculty member or continuous academic professional, the unit administrator, dean or senior administrator, and the Office of the Vice President for Human Resources.

Benefits

Benefits Offered through the Transitions Program:

Transition Workshop Series

In the first year of the Transitions phased retirement period, the individual’s college will fund participation in a year-long Transition Workshop Series offered by the College of Continuing Education. Departments should consider participation in this series part of the individual’s work effort during the phased retirement.

Health Care Savings Plan Contribution

After the Last Day of Employment, the University will make a contribution to the Health Care Savings Plan (HCSP) based on the value of 2 years (52 pay periods) of University contributions for medical and dental care. The value of these contributions will be determined by the individual’s coverage level, work location, permanent residence and the University contribution rates in effect for active employees at the time of retirement. This contribution will be made as quickly as administratively possible following the rescission period detailed in the Subsequent Release.

Research and Teaching (RaT) Account Access

After the Last Day of Employment, the college will make a deposit to the departmental RaT account for the individual’s use in the two years following the Last Day of Employment. The use of these funds are governed by standard University policy regarding the documentation to be provided to substantiate ordinary and necessary business expenses and will be dispensed at the Dean’s or responsible administrator’s sole discretion.

Other Benefits Offered and Additional Benefit Information

For other benefits and information regarding benefit cessation and relation to other benefits programs, refer to Appendix: Benefits: Transitions Phased Retirement Program

This policy implements Board of Regents Policy: Faculty and Staff Retirement. The Transitions Program is offered by the University to eligible tenured faculty and to continuous academic professionals in an effort to support the facilitation of change within the collegiate and administrative units.

• Implementing Transitions - Phased Retirement Program

See Appendices for packet of supporting Forms/Instructions.

Last Day of Employment

The last day of work as a tenured faculty member or continuous appointment academic professional and the last day of the transitions phased retirement period.

Last Day of Regular Appointment

The last day in unreduced appointment prior to the beginning of the Transitions phased retirement.

Senior Administrator

The president, chancellor, senior vice president, or vice president, as appropriate.

Unit Administrator

The department, unit, or division head, as appropriate.

Year of Service

A 12-month period during which the individual held a continuous academic professional appointment of at least 75 percent on at least a 9-month basis at the University of Minnesota. Approved unpaid leaves of absence will count toward a Year of Service, if the individual’s appointment was at least 75 percent during the leave.

Tenured faculty member or continuous academic professional employee

• Reviews all program documentation, forms, policy, and procedure.
• Consults legal counsel as appropriate.
• Schedules the leave without pay percentages and the Last Day of Employment with the unit administrator, dean or senior administrator, and the Office of Human Resources.
• Executes the Transitions Program Agreement and the Initial Release.
• At the end of the Transitions Program, executes the Subsequent Release and the Benefits Election Form and forwards them to Employee Benefits.

Responsible administrators/supervisors

• Reviews all program documentation, forms, policy, and procedure.
• Schedules the leave without pay percentages and the Last Day of Employment with the tenured faculty member or continuous academic professional, dean, or senior administrator, and the Office of Human Resources.
• Follows procedures as outlined under the document: Implementing the Transitions Program.
• Remits payment of program costs to the College of Continuing Education.
• Ensures appropriate payment of amounts from RaT accounts following the Last Day of Employment.

Office of Human Resources

• Advises administrators/supervisors on documentation, form, policy, or procedure interpretation.
• Schedules Last Day of Employment with the tenured faculty member or continuous academic professional employee, and the unit administrator, dean, or senior administrator.
• Approves and signs all Transitions Program Agreements.
• Ensures all payment of all benefits (with the exception of the RaT expense payments) under the Transitions Program, according to policy.

• Benefits Election Form (Transitions Phased Retirement Program) (PDF)
• Benefits Information Supplement (Transitions Phased Retirement Program) (PDF)
• Benefits: Transitions Phased Retirement Program
• Initial Release (Transitions Phased Retirement Program) (PDF)
• Subsequent Release (Transitions Phased Retirement Program) (PDF)

The packet of documents below is all required to implement the policy:

• Benefits Election Form (Transitions Program) (PDF)
• Benefits Information Supplement (Transitions Program) (PDF)
• Initial Release (Transitions Program) (PDF)
• Subsequent Release (Transitions Program) (PDF)

• Transitions Phased Retirement Program FAQ

• Board of Regents Policy: Faculty and Staff Retirement
• Academic Appointment Types
• HRMS Business Process: Ending an Appointment for Employee Receiving a Severance Package

Effective:

May 2010