TO: UCSB Community
FR: Cynthia Seneriz, Acting Director, Human Resources
RE: Formal Review/Employee Comment- Renewal of the Phased Retirement Program
The University is proposing to renew the Phased Retirement Program, an optional tool that locations may choose to provide eligible policy covered staff who are 55 or older transition into retirement.
The program allows eligible career staff members, except Senior Management Group members, to voluntarily reduce their work hours by at least 10 percent a year for up to three years before retiring. Participants would receive a lump sum cash payment upon retiring that would be equal to half the amount of the reduction in time.
Under the Phased Retirement Program, if you have at least five years of service credit and work at least 60 percent time, you would be eligible. You could participate for as few as 120 days to as long as three years, reducing your appointment by at least 10 percent a year for up to three years before retiring. You are expected to retire when you finish the program and would receive the lump sum payment within 30 days of retirement.
Please keep in mind that if you decide later you don’t want to retire or you don’t want to reduce your appointment by at least 10 percent a year, you would forfeit the incentive.
Individual departments decide whether it makes sense to offer this program within their operations after evaluating business needs. For represented employees the program is subject to both departmental approval and collective bargaining.
Some of your employee benefits would stay the same if you sign up. For example, eligibility for medical benefits wouldn’t change as long as you work at least 17.5 hours a week. Other benefits would be affected because your salary or appointment rate would be less. You would earn less service credit toward the UC Retirement Plan and your retirement income might be reduced depending on your situation.
The University is proposing that the program be renewed for a four-year period, effective January 1, 2015 and ending December 30, 2019.
The program and frequently asked questions is posted at: http://ucop.edu/human-resources/_files/phased-retirement.pdf
This is a formal review and employees covered by this policy who wish to provide comments may submit them to Farfalla Borah (link sends e-mail) by no later than Thursday, October 23, 2014.