IU Phased Retirement Program for Faculty

Phased retirement offers a flexible path for faculty

Phased retirement is a valuable option for faculty who want to reduce their workload and ease into retirement.

The benefits of phased retirement include:

  • The ability to withdraw from specific retirement account funds while still working. This includes the IU retirement plan, the IU tax deferred account (TDA) plan, and funds held at Fidelity in the 457(b) retirement plan.
  • Continuing to work while taking a partial leave without pay.
  • Continuing participation in medical, dental, and other IU-sponsored benefits.
  • Reducing workload by 20-50% for a period of 12-36 months (or up to the end of the faculty member’s appointment if less than 36 months).

If you are with an IU affiliate

During phased retirement, faculty members may not also be employed by an entity defined by the IRS as an Indiana University affiliate. For the purposes of this program, IU affiliates include the IU Foundation.

How do I start?

Consult with your department head/dean to find a reduced schedule that works for everyone.

Once you agree on a schedule, you'll need to structure your agreement and submit the required Phased Retirement Application & Agreement Form to IU Human Resources at least 60 days prior to your phased retirement date.

Eligibility by age

Full-time faculty members who have attained the below age and service requirements are eligible to request participation in the program:

Retirement requirements for age and years of service
AgeYears of IU service
6216
6314
6412
65 and older10

The “Years of IU service” requirement will be prorated for ages that fall between the ages that are listed in the above table.

What happens to my benefits during phased retirement?

During phased retirement, your 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 your annual budgeted base salary.
  • University contributions to the IU retirement plan will be based on actual salary paid.

Retirement fund withdrawal rules

During the period of phased retirement, you may withdraw funds from these retirement plans:

  • IU retirement plan
  • 457(b) retirement plan (for funds held at Fidelity only)
  • Tax deferred account (TDA) plan

You may NOT withdraw funds from the plans listed below during the phased retirement period:

  • IU supplemental early retirement plan (SERP)
  • Public employee’s retirement fund (PERF)
  • IU retirement & savings plan

Can I still retire with IU retiree status?

Eligibility for the phased retirement program is separate from that of IU retiree status. To be eligible for IU retiree status, employees must meet the retiree status criteria.

Important note: For phased retirement program participants only, retiree status criteria has been modified to allow years of service to continue to accumulate and apply towards retiree status during the phased retirement period, even though only working part time.

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