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IU Phased Retirement Program

FOR TENURED FACULTY

On this page: Overview | Eligibility | Leave Percentage | Period of Time | Benefits | Retirement Date | IU Affiliates | Effective Date

Program Overview

The IU Retirement Plan has been amended to allow certain tenured faculty the option of withdrawing retirement accumulations prior to separating from the University. This provision for early withdrawals of retirement accumulations is part of a Phased Retirement program that provides eligible tenured faculty the option of reducing teaching and research effort prior to entering full retirement.

During Phased Retirement, a tenured faculty member would remain in their full-time position while taking a partial leave-without-pay (LWOP), with continued participation in medical, dental, and other benefits.

Phased Retirement is a valuable option for tenured faculty who want to reduce their work load and ease into retirement. Departments benefit from a Phased Retirement arrangement by obtaining a specific retirement date and having "salary savings" to re-allocate for other purposes.

Eligibility

Full-time tenured faculty members are eligible in this program after reaching age 65 and completing at least 10 years of continuous full-time service.

Individuals who are potentially eligible for 18/20 Early Retirement Plan benefits are excluded. IRS rulings do not allow the University to modify the 18/20 Early Retirement Plan, and thusly prevents Phased Retirement provisions for employees eligible for 18/20 benefits. If an individual was previously a participant in the 18/20 Early Retirement Plan, but is no longer an eligible participant, they may be eligible for this program if all other eligibility requirements are met.

Leave Percentage

With agreement of the department chair and school dean, an eligible faculty member may initiate a Phased Retirement leave-without-pay of 20 percent to 50 percent time. LWOP may vary during the Phased Retirement period, but must be no less than 20 percent and no more than 50 percent.

Period of Time

A period of Phased Retirement may be no shorter than 12 months and no longer than 36 months.

Benefits

During Phased Retirement, university benefits will continue in the same manner as for any other full-time employee, including university contributions to medical and dental coverages. This means that employee contributions towards IU-sponsored Medical, Dental, Supplemental Life Insurance, and Long-term Disability plans will continue to be based on annual budgeted base salary. The only exception is university contributions to the IU Retirement Plan, which will be based on actual salary paid.

During the period of Phased Retirement, the faculty member may withdraw funds from her/his IU Retirement Plan account.

Retirement Date

Phased Retirement requires commitment to a date of separation (retirement) from Indiana University that occurs at the end of the Phased Retirement LWOP. The separation date is irrevocable.

Employment at University Affiliates

During Phased Retirement, the faculty member may not also be employed by an entity defined by the IRS as an Indiana University affiliate.

Effective Date

The University’s Phased Retirement Plan option is effective January 1, 2009. The University reserves the right to amend or terminate this plan at its sole discretion.