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The Arizona Board of Regents Phased Retirement Program for ORP Participants (FAQ)
Overview
The ABOR Phased Retirement Program (PRP) enables eligible Optional Retirement Plan (ORP) participants to reduce their workload and hours, remain employed for up to three years, and concurrently take distributions from their ORP retirement account(s).
An eligible individual's participation is entirely voluntary, is subject to negotiation with and approval by the applicable dean/vice president, and is established by a binding written legal agreement. The dean/vice president retains the authority to balance college/division business continuity needs with requests for phased retirement. Consequently, the final decision is made jointly between the participant and the applicable dean/vice president.
ABOR PRP Agreements may be implemented no earlier than July 1, 2008.
Eligibility
To participate in the PRP, ORP participants must 1) be at least 62 years old, 2) be fully vested in the ORP and 3) enter into a written Phased Retirement Agreement with the University. The Agreement must be finalized, approved and accepted by the University and submitted to Human Resources before the beginning of the employee’s next contract period.
The Written Agreement and Duration of the Phased Period
The Arizona Board of Regents and General Counsels for each Arizona University have developed a standard written Phased Retirement Program Agreement to be used in every case. The Agreement records the specific terms of each participant's phased retirement period, workload, FTE, salary, and retirement date.
The maximum duration of a participant's phased retirement period is three (3) years. A period less than three years may be requested by the participant.
Once the phased retirement period has begun, participants may choose to accelerate retirement, but may not extend retirement past the date in the participant's written Agreement. Any plans for accelerated retirement will be shared as early as possible with the applicable dean/vice president to accommodate college/division business continuity needs. This allows for unforeseen circumstances, such as a participant's illness, that may prevent a participant from fulfilling the negotiated phased retirement period.
Reduced Workload and Reduced Hours
A Phased Retirement Program participant's FTE, salary and workload will be reduced at the beginning of the phased retirement period. The specific amount of reduction is subject to negotiation between the participant and the applicable dean/vice president.
Unless otherwise requested by the participant in writing, the FTE will be no less than .50 (20 hours/week) allowing the participant to retain University and Arizona Department of Administration benefits eligibility.
Tenured Faculty and Individuals with Continuing Status
A tenured faculty member or professional with continuing status irrevocably relinquishes all status rights at the end of the phased retirement period.
Year-to-Year Professionals
Year-to-Year professionals continue to be subject to annual employment contract renewals during the phased retirement period. Participation in phased retirement by non-tenured/non-continuing personnel does not create a guarantee or implied agreement of continuous employment during the phased retirement period.
Access to ORP Accounts during the Phased Retirement Period
Participants may take distributions from vested ORP account(s) as desired during the phased retirement period.
Contributions to ORP Accounts during the Phased Retirement Period
Both employee and employer contributions to the ORP continue through the participant's retirement date in accordance with Arizona Revised Statutes 15-1628C and the Arizona Board of Regents ORP document.
Contact
Human Resources:
Anna Fallis 928-523-6140
Alicia Howard 928-523-0243
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