The information below provides detailed employee benefit information for phased retirement participants.
Medical and Supplemental Benefits
For the duration of your phased retirement arrangement, if you are enrolled in the State System Health Plan, you will retain eligibility for health insurance in the same manner as a full-time employee, and will pay the employee premiums applicable to full-time employees.
Faculty Health & Welfare Fund (Fund)
Faculty members participating in phased retirement will continue to receive Fund benefits (i.e. dental and vision coverage) at the full-time faculty level.
Retirement Plan Information
Alternative Retirement Plan (ARP)
Employer contributions and employee contributions are based upon the reduced compensation during the phased retirement arrangement.
ARP participants will be permitted to withdraw monies from their ARP account during their phased retirement arrangement, effective with the first day of the academic year in which the Phased Retirement Arrangement commences (e.g. August 26, 2019 for Phased Retirement Arrangements commencing in the 2019/20 academic year, and August 24, 2020 for Phased Retirement Arrangements commencing in the 2020/21 academic year). The withdrawals may be in the form of a lump sum or used to purchase an annuity that will pay out in installments. A minimum amount of $25,000 must remain in the ARP account while the faculty member is participating in the program.
State Employees’ Retirement System (SERS) and Public School Employees’ Retirement System (PSERS)
Employer contributions, employee contributions and service credit are based upon the reduced compensation and reduced work hours during the phased retirement arrangement.
Participants will not be permitted to withdraw monies or commence pension distribution during the phased retirement arrangement.
Voluntary Retirement Plans
Tax Sheltered Annuity (TSA) 403b
Faculty members who are over age 59 ½ are permitted to withdraw monies from their TSA account.
Deferred Compensation 457
Faculty members participating in a phased retirement arrangement will not be permitted to withdraw monies from their Deferred Compensation account.
Disability and Life Insurances
Basic Group Life Insurance
Faculty members are provided with employer-paid group life insurance in the amount of one times base salary, not to exceed $50,000 in coverage. The amount of coverage provided for the calendar year is calculated based upon the base salary in effect on January 1 of that calendar year.
Voluntary Group Life and Accident Insurance
If you are currently enrolled in the maximum benefit amount (lesser of 5x salary or $500,000), the reduction in workload may result in a decrease to the benefit amount.
Voluntary Long Term Disability Insurance
This benefit program provides for salary continuation up to 60% of your covered monthly earnings if you become disabled. If a disability were to occur during the time period you are participating in a phased retirement arrangement, the benefit would be calculated based on your reduced salary commensurate with your workload.