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The Arizona Board of Regents Phased Retirement Program for Optional Retirement Plan Participants - FAQs
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- Q: May the terms of an executed Phased Retirement Agreement be changed?
- Q: What is the 45 day period to consider the agreement? Does the employee have to wait 45 days to sign the agreement?
- Q: What is the 7 day revocation period?
- Q: How does a Phased Retirement participant begin withdrawing from an Optional Retirement Plan account?
- Q: Why are Phased Retirement Program participants required to continue to contribute to the Optional Retirement Plan?
- Q: Are there any restrictions to the withdrawals from Optional Retirement Plan accounts?
- Q: How does participation in the Phased Retirement Program affect a participant's opportunity to return to work after retirement?
- Q: Does participation in the Phased Retirement Program affect participation in a retirement-eligible position after a post-retirement return to work?
- Q: Once an employee retired under the Optional Retirement Plan, whether as a result of the Phased Retirement Program or regular retirement) is that employee eligible to re-join the ORP if subsequently rehired into an ORP-eligible position?
- Q: When a participant's position FTE is reduced below full-time (1.00 FTE), what benefits are affected directly?
- Q: When a participant's position FTE is reduced below full-time (1.00 FTE), what benefits may be affected indirectly?
- Q: Payout of Annual Leave upon Separation
- Q: Retiree Accumulated Sick Leave (RASL)
- Q: When a participant's position FTE is reduced below full-time (1.00 FTE), is there any affect on the participant's Tax Sheltered Annuity 403(b) Plan or the Deferred Compensation 457 Plan.
Optional Retirement Plan
Arizona State Retirement System Distributions
Return to Work after Retirement - Arizona State Retirement System Accountholders
Return to Work After Retirement - Optional Retirement Plan Participants
Supplemental Compensation
Benefits
Additional Resources
Phased Retirement Agreement
Q: May the terms of an executed Phased Retirement Agreement be changed?- A: The terms of a Phased Retirement Agreement are irrevocable, unless the participant chooses to accelerate retirement due to an unforeseen circumstance such as a change in health or ability to fulfill the responsibilities of the negotiated phased retirement period.
back to topQ: What is the 45 day period to consider the agreement? Does the employee have to wait 45 days to sign the agreement?
- A: The 45 day period is required by federal law when an employee in a group that falls within the protected age group (40 or older) is being offered a retirement plan and as part of agreeing to the terms of the plan, the employee will waive any potential age discrimination claims against the employer. An employee is entitled to take the entire 45 day period to consider the terms of the agreement, and during those 45 days, the University cannot withdraw the offered agreement.
The employee does not have to consider the agreement for the full 45 days. The employee can sign the agreement on the first day it is received and that waives the rest of the 45 day period.
Q: What is the 7 day revocation period?
- A: The 7 day revocation period is required by federal law when an employee is waiving any potential age discrimination claims. Once an employee signs the Phased Retirement Agreement s/he has up to 7 calendar days to change his or her mind and rescind the agreement. The Phased Retirement Agreement does not become effective and any payments due under the agreement will not be paid until after the 7 calendar days have passed.
Optional Retirement Plan
Q: How does a Phased Retirement participant begin withdrawing from an Optional Retirement Plan account?- A: Confirm with the departmental business office that the Phased Retirement Agreement has been received and approved by Human Resources. Then, contact the Optional Retirement Plan investment company to begin withdrawals. The participant should also notify the Senior Benefits Specialist assigned to his/her department/college of the withdrawal request so that employer authorization for the withdrawal can be provided. Please allow up to 30 days for employer authorization.
| Website | Customer Service |
| Fidelity Investments | 1-800-343-0860 |
| TIAA-CREF | 1-800-842-2252 |
Q: Why are Phased Retirement Program participants required to continue to contribute to the Optional Retirement Plan?
- A: Continued employee and employer contributions to the Optional Retirement Plan are mandated by Arizona Revised Statute 15-1628C. All contributions will stop after the participant's retirement date.
Q: Are there any restrictions to the withdrawals from Optional Retirement Plan accounts?
- A: There are no withdrawal restrictions imposed by the University or the Optional Retirement Plan.
Arizona State Retirement System Distributions
Q: Before joining the Optional Retirement Plan, the participant had contributed to the Arizona State Retirement System (ASRS). Does participation in the Phased Retirement Program affect the ASRS account?- A: No. ASRS participants (both for the frozen 'System' and the current 'Plan') may begin distributions from ASRS when the participant retires from all ASRS employers. In this case, 'retires' means to sever employment from all ASRS-participating employers. The Phased Retirement period is considered active employment for the University.
Return to Work after Retirement - Arizona State Retirement System Accountholders
Q: Before joining the Optional Retirement Plan, the participant had contributed to the Arizona State Retirement System (ASRS) and still has an active ASRS account. Does participation in the Phased Retirement Program affect this ASRS account?- A: While a formal Phased Retirement Agreement does define the participant's formal retirement date, the ASRS account is administered according to specific ASRS rules regarding return to work after a formal retirement. For the most current return to work information, and information on a specific ASRS account, contact the ASRS directly at http://www.azasrs.gov/web/index.do.
Return to Work After Retirement - Optional Retirement Plan Participants
Q: How does participation in the Phased Retirement Program affect a participant's opportunity to return to work after retirement?- A: The Phased Retirement Program Agreement is an executed contract between the participant and the University that formally defines the participant's retirement date. The participant may return to work after this retirement date; however, under the Optional Retirement Plan Section 2.20(c), there cannot be any arrangement made (whether written or verbal) for re-employment prior to the participant retiring. If the participant does return to work in the future, the participant will not be eligible for tenure or continuing status.
Q: Does participation in the Phased Retirement Program affect participation in a retirement-eligible position after a post-retirement return to work?
- A: Once an Optional Retirement Plan participant retires from the ORP, s/he may re-join the plan; however, s/he may also be able to join the Arizona State Retirement System (ASRS), depending on the participant's status. For more information on the ASRS, contact ASRS online at Arizona State Retirement System or by phone.
| Tucson: | 520-239-3100 |
| Phoenix: | 602-240-2000 |
| Areas outside Tucson & Phoenix: | 1-800-621-3778 |
Q: Once an employee retired under the Optional Retirement Plan, whether as a result of the Phased Retirement Program or regular retirement) is that employee eligible to re-join the ORP if subsequently rehired into an ORP-eligible position?
- A: An ORP retiree who is re-hired into an ORP-eligible position would be permitted to make a new election to join the ORP or Arizona State Retirement System. If the retiree elects the ORP and is already receiving any ORP withdrawals, then the re-hired employee must complete five years of service in order to vest.
Supplemental Compensation
Q: Does participation in the Phased Retirement Program affect a participant's eligibility to earn supplemental compensation?- A: Participation in the Phased Retirement Program does not affect existing Supplemental Compensation policy. For more information on Supplemental Compensation, visit this website.
University Handbook for Appointed Personnel - Supplemental Work for the University 2.06.07
Benefits
Q: When a participant's position FTE is reduced below full-time (1.00 FTE), what benefits are affected directly?- A: Benefits directly affected by a change in position FTE include benefit eligibility, annual leave accrual, paid sick time accrual and levels of coverage available through voluntary supplemental life insurance.
Benefits eligibility is defined by the Arizona Department of Administration. To remain benefits eligible, the Phased Retirement Program participant must be employed at least 20 hours per week, or .50 FTE.
Annual leave is accrued based on the FTE. For more information on annual leave, visit these websites.
University of Arizona Handbook for Appointed Personnel - Annual Leave 8.01.01 A3 Arizona Board of Regents Policy Manual - Vacation Leave 6-803 D
Paid Sick Time is accrued based on the FTE. For more information on accrual of paid sick time, visit these websites.
University Handbook for Appointed Personnel - Sick Leave 8.02.01 D Arizona Board of Regents Policy Manual - Sick Leave 6-804 C
Voluntary supplemental life insurance coverage is based on the insured's salary. If the FTE and salary are both reduced, the available coverage is reduced accordingly. For more information on these voluntary supplemental life insurance programs, visit this website.
Voluntary Supplemental Life Insurance
Q: When a participant's position FTE is reduced below full-time (1.00 FTE), what benefits may be affected indirectly?
- A: Benefits indirectly affected by a change in position FTE include total accruals of annual leave and accrued paid sick time as applied to the Payout of Annual Leave upon Separation and the Retiree Accumulated Sick Leave Program.
Payout of Annual Leave upon Separation
While participation in the Phased Retirement Program does not affect the existing payout of annual leave upon separation, the reduced annual leave accrual rate may affect the total accrued annual leave available. For more information on the payout of annual leave, visit these websites.
University Handbook for Appointed Personnel - Annual Leave 8.01.01 D2 Arizona Board of Regents Policy Manual - Vacation Leave 6-803 F
Retiree Accumulated Sick Leave (RASL)
While participation in the Phased Retirement Program does not affect the existing RASL program, the reduced sick leave accrual rate may affect the total accrued sick leave available for this program. This program is administered by the state of Arizona General Accounting Office.
For more information on the RASL program, visit these websites.
University Handbook for Appointed Personnel - Sick Leave 8.02.01 F
State of Arizona General Accounting Office - Retiree Accumulated Sick Leave Program
University of Arizona Human Resources - Retirement Resources
Q: When a participant's position FTE is reduced below full-time (1.00 FTE), is there any affect on the participant's Tax Sheltered Annuity 403(b) Plan or the Deferred Compensation 457 Plan.
- A: Participation in the Phased Retirement Program does not affect existing guidelines and IRS limits for contributions to the Tax Sheltered Annuity 403(b) Plan or the Deferred Compensation 457 Plan. For more information on these voluntary supplemental retirement programs, visit this website.
Voluntary Supplemental Retirement Plans
Additional Resources
Q: Are there additional resources regarding retirement or retirement planning?- A: Additional retirement information is available on the HR website at Retirement Resources
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