DIXIE STATE COLLEGE OF UTAH
POLICIES AND PROCEDURES MANUAL
Policy No: 26
Policy: EARLY RETIREMENT
3-26 EARLY RETIREMENT
26.1 At Dixie State College eligible employees, who wish to terminate active employment with the College prior to the age of 65, are given the opportunity to apply for an early retirement financial incentive.
26.2 Entrance into the early retirement program is not a right and is available to employees who qualify only upon recommendation of the administration and approval of the Board of Trustees.
26.2.1 The criteria upon which the administration approves or disapproves an application shall have a rational relationship to the legitimate needs, well-being, and overall mission of the College.
22.214.171.124 For eligible employees in positions funded 50% or more by non-state funds (grants, auxiliaries (self-supporting enterprises)) approval or disapproval may also be determined on the availability of on-going funds from the grant or enterprise.
26.3 Eligible employees desiring to apply for early retirement must notify, in writing, their immediate supervisor and the Director of Human Resources.
26.4 Written notification must be received by March 1st, if retirement is to begin with the new contract year, or at least four months prior to the date of requested retirement.
26.4.1 Exceptions to the notice period must be approved by the President.
26.5 The Human Resource Office will provide retirement advisement and related information on retirement benefits and services to assist employees with the terms and conditions of early retirement.
26.6 Early Retirement is separate from, and in addition to, the State Retirement and TIAA/CREF.
26.6.1 Employees applying for early retirement must contact their regular retirement provider and arrange for those retirement benefits.
26.7 The Early Retirement Program will be administered and reviewed on a year-to-year basis to monitor its effectiveness and fiscal implications.
26.7.1 The Board of Trustees reserves the right to amend or to terminate the Early Retirement Program at any time, but no amendment or termination shall affect any participant who has already retired under its provisions.
26.8 In order to be eligible for the early retirement program, employees must meet all three of the following criteria:
26.8.1 Full-time, regular employees with a college appointment of 75 percent or greater are eligible to apply for early retirement;
26.8.2 The addition of age and years of service at Dixie State College must equal at least 75;
126.96.36.199 Years of service are determined by the number of years the employee has been on the College’s retirement plan.
26.8.3 And the employee must be 57 years of age or older. The years of early retirement must provide a bridge to Social Security age.
26.9.1 The financial incentive is equivalent to 20 percent of the employee's contracted salaried earnings for the 12 month period immediately prior to the actual date of early retirement.
26.9.2 The incentive will be paid in monthly installments for a maximum of five years (60 months) or to age 65, whichever comes first.
26.9.3 Incentive payments will cease the last day of the month of the employee's 65th birthday, or of the last day of the month which totals five years (60 months).
26.9.4 Contracted salaried earnings do not include overtime, consulting, workshops, extension classes, and/or other special pay.
26.9.5 Early retirement for faculty is based on the nine month contracted salary.
26.9.6 The incentive shall be adjusted annually at a rate determined by the College administration and approved by the Board of Trustees.
188.8.131.52 This annual adjustment will normally be at the same rate as that received by college employees performing at a satisfactory level.
26.10.1 Medical, dental, and life insurance benefits will be on the same basis as provided to regular full-time college employees and will continue as long as the employee is receiving the early retirement incentive.
26.10.2 Medical, dental, and life insurance benefits will cease the last day of the month following the employee's 65th birthday, or the last day of the month which totals five years (60 months).
26.10.3 Continued coverage for medical and dental insurance for retirees and/or their spouses may extend from the time the early retirement incentive ends until the individuals are age 65 and eligible for Medicare. Dependent children of retirees will be covered up to age 26, as long as they continue to meet all other eligibility requirements, or up to the time the continued coverage for the retiree and/or the retiree's spouse ends, whichever occurs first.
26.10.4 All costs for the continuation of insurance coverage will be paid by the retiree and/or spouse. Complete details regarding the continued coverage, and the employee's spouse's, and dependent's rights, responsibilities, premium charges, enrollment procedures and when coverage ends are available from the Human Resources Office.
26.10.5 At age 65 the retiree may convert to a Medicare supplement program which covers expenses Medicare does not pay for.
26.10.6 Accrued vacation leave will be paid for in a lump sum at the time of early retirement and at the salary rate when application for early retirement is made.
26.10.7 Retirees are ineligible for disability benefits funded by the College.
26.10.8 No further contribution will be made by the college to the employee's retirement account.
26.10.9 Employees on early retirement may be re-employed by the College less than half-time, without tenure, only with the approval of the President.
26.11 Death Benefits
26.11.1 If the retiree dies before all obligations under the early retirement have been met, remaining financial incentives will terminate two pay periods after the death of the retiree.
26.11.2 The surviving spouse and dependents may continue medical and dental insurance benefits on the group plan for the remainder of the eligible early retirement period.
26.11.3 At the end of the eligible period, the surviving spouse and dependents may purchase COBRA insurance, subject to Federal law, at 102 percent of premium for up to 36 months.
26.11.4 In the event of an employee’s death while on early retirement, life insurance payments will be based on the employee’s full salary upon which the early retirement benefit is based, not on the 20% early retirement benefit.