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Early Retirement Policy

This policy was posted for public comment from November 2 – 17, 2023.

Comments

Are there any stipulations around working part-time in a different role (different than your FT role) at the college and taking early retirement simultaneously?
  1. Section IV.A.1- Shouldn’t the early retirement plan approval come specifically from the president. Perhaps this language should be changed so it is the president’s decision after consultation with the Vice President for Finance & Administration, AVP for Budget and AVP for People and Workplace Culture.
  2. Section IV.A.4-This section defines phased retirement. This definition is inconsistent with the phased retirement definition in the Personnel Definitions document. The definitions should be the same.
  3. Section IV.A.5-What percentage of reduction occurs for each semester and calendar year? This should be specified. Will the rate of reduction be the same for full-time faculty and faculty at Salt Lake Technical College?
  4. Section IV.A.6-Can the college re-employ employees who have chosen phased retirement option?
  5. Section IV.A.7- How does this provision work if the employee dies on the last day of a particular month?
  6. Section IV.A.8 -Does this cash incentive or stipend apply to: a) regular retirement; b) early retirement; and c) phased retirement?
  7. Section IV.B.1.d.-The “reasonably assured funding” language in this section is vague, and the section, in general, lacks clarity.
  8. Section IV.B.2.a - Can an employee retire mid-semester? Does the policy need to define what a retirement date is?
  9. Section IV.C.1-Should for the “lowest period” be replaced by the “shortest time period”?
  10. 1Section IV.C.2-Is this stipend paid annually, monthly, or every two weeks (i.e., 7th and 22nd of each month)?
  11. 1Section IV.C.2.a-What would be the percentage involved in making this stipend calculation?
  12. 1Section IV.C.3.a- Does this work for faculty at Salt Lake Technical College? They are on a 12-month contract. Unlike the rest of the college faculty, they don’t have a 9-month contract and then a 3-month contract if they work during the summer.
  13. Section IV.C.3.c-In this section, it references “single social security benefit”? What does this mean? Is this term applicable to an employee who is married or has dependents?
  14. Section IV.D-Besides medical and dental benefits, does the college provide additional benefits for early or phased retirees? If so, can all additional benefits be itemized in this section?
  15. Section IV.D.1- the chart shows the college’s contributions for early retirement benefits. Is this chart also applicable to phased retirement benefits, or are these college contribution amounts different?
  16. Section IV.D. 1-In this chart, will the benefits also apply to the early retiree’s dependents?
  17. 17. Section IV.D.2- Should the benefits discontinue when the early retiree becomes “eligible for Medicare” instead of stating “at age 65”?
  18. Section IV.E.4- This section may need to be revised because Salt Lake Technical College faculty, who are on 12-month contracts and not on a semester schedule, would not be included under this section.
  19. Section IV.E.9-When the retirement incentive is added to the supplemental retirement program, will the incentive be taxed? In addition, when it is withdrawn, will it be taxed?
  20. Section IV.E.10- Why do we have this restriction in the policy? Why can’t withdrawals from the retirement plan be taken during the phased retirement period?

Responses

Are there any stipulations around working part-time in a different role (different than your FT role) at the college and taking early retirement simultaneously?

You are allowed to take early retirement and then continue working at the college in a part-time capacity.

Should the Early Retirement Plan Approval Come from the College President? (4.A.1)

Section 4.A.1 was revised to emphasize that the approval is from the college president after consulting with specific entities. 4.A.1 now reads,

“The college offers an early retirement plan to qualified employees upon approval by the college president after consultation with the associate vice president (“AVP”) of People and Workplace Culture (“PWC”) and the AVP of the Budget Office.”

Questions about Rates of Reduction and If Rates Differ for SLCC and Salt Lake Technical College (SLTC) Faculty (4.A.5)

This is explained in section 4.E. The rates are based on the faculty’s teaching load. This varies between different faculty positions.

How is the Provision in 4.A.7 Affected If the Employee Dies on the Last Day of a Particular Month?

Their coverage would cease at the end of the following month. Section 4.A.7 has been rewritten to read,

“If an employee dies during the early retirement period, the college will end all early retiree benefits and stipend payments at the end of the month after the date of the early retiree’s death. If an early retiree dies on the last day of a month, then the early retiree benefits and stipend payments will cease at the end of the following month.”

How Does the Cash Incentive or Stipend in 4.A.8 Apply to Regular Retirement, Early Retirement, and Phased Retirement?

Historically, this has applied to regular retirement and early retirement. Phased retirement involves an individual who is still working for the college. As that individual is still an employee of the college, they cannot receive the cash incentive or stipend.

Can an Employee Retire Mid-Semester? (4.B.2.a)

Staff can retire mid-semester. Staff are encouraged to set their retirement date for the end of a pay period. Faculty should retire at the end of a semester.

How are Staff Stipends Paid? Annually, Monthly, Every Two Weeks? (4.C.2)

Stipends are paid following the regular payroll schedule. At present, this is twice a month.

What is the Percentage Involved in Making the Stipend Calculation in Section 4.C.2.a?

The percentage depends upon the stipend period. Please see the chart in section 4.C.2.b.

Does Section 4.C.3.a Apply to Faculty at SLTC as They are on 12-month Contracts?

Yes. Section 4.C.3 applies to SLTC faculty and any other faculty on a 12-month contract.

Are There Additional Benefits for Early or Phased Retirees in addition to Medical and Dental?

Please see the Employee Benefits Eligibility Policy, section IV.C, for further information.

Concerns about the Chart in Section 4.D.1

Is this chart also applicable to phased retirement benefits, or are these college contribution amounts different?

In phased retirement, you are still an active employee, and premiums would be paid by the college as they would for any active employee.

Will the benefits in the chart also apply to the early retiree’s dependents?

It applies to eligible dependents.

Should Section 4.E.4 be Revised to be Applicable to SLTC Faculty on 12-month Contracts?

Section 4.E.4.c has been added to provide clarification. The section reads,

“Salt Lake Technical College faculty on 12-month contracts may propose to be reduced from 100 percent FTE to no less than 75 percent FTE, up to two years before regular or early retirement.”

Clarification about the Retirement Incentive in 4.E.9

The phased retirement incentive is treated as pre-tax dollars and will be taxed when withdrawn.

Clarification about Why Withdrawals from the Retirement Plan are Restricted During the Phased Retirement Period (4.E.10)

Our retirement plan provisions, as governed by the IRS, state that you cannot begin withdrawals when you’re still an active employee.

Suggestions for Terminology Clarification and Technical Corrections

Phased Retirement Definition (4.A.4)

The definition for “Phased Retirement” in the personnel definitions document will be updated to match the definition in section 4.A.4 of the revised Early Retirement Policy, “Phased retirement is a type of early retirement where the employee reduces the full-time equivalent (“FTE”) of their full-time position.”

Vague Language in Section 4.B.1.d

Funding sources vary by employee position, affecting the funding for individuals granted early retirement. Financing of positions can include soft funding and/or hard funding. Some examples are grant funds, one-time funds, and E&G funds. This is only one part of the consideration for eligibility.

Is a Definition of “Retirement Date” Needed? (4.B.2.a)

No changes were made to the policy in response to this comment.

Suggestion for Rewording Section 4.C.1

Based on this comment, section 4.C.1 was revised and reads, “The college pays eligible early retirees stipend payments in installments as a bridge to Social Security benefits for the shortest time period…”

Clarification of “Single Social Security Benefit” in section 4.C.3.c

The Social Security Administration calculates single Social Security Benefits. Single Social Security benefits refer to the benefits specific to the individual retiring. It does not apply to additional Social Security benefits that the individual may receive from a spouse or other entity.

Suggestion for Rephrasing “at age 65” in section 4.D.2

No changes were made to the policy in response to this comment.