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    Frequently Asked Questions

    In the event of a conflict between these Frequently Asked Questions and official documents, statutes, and policies such as the IPVR Policy Statement, Retiree Accumulated Sick Leave (RASL) documents, the Arizona Board of Regents Optional Retirement Plan (ORP), and the Arizona State Retirement System (ASRS) documents, the RASL, ORP and ASRS documents will govern. These FAQ’s are intended to provide accurate and authoritative general information in regard to the IPVR. They are not intended to provide legal, financial, tax, accounting, retirement, or any other type of advice.



     

    Who is eligible to apply for the IPVR?
    You are eligible to apply for the IPVR if you meet the following requirements before May 23, 2011:

    • tenured faculty and professionals with continuing status, including those holding an administrative appointment, AND
    • current appointments are for .50 FTE or greater, AND
    • completion of at least 10 years of service to UA, AND
    • attainment of age 65, AND
    • have not submitted written intent to retire
      have not entered into a retirement agreement, AND
      (Clarification added:  January 27, 2011)
    • have not entered into a Phased Retirement Plan agreement
    Years of service are calculated from the original date of hire. An academic-year employee, whether paid over nine (9) months or twelve (12) months will be credited with one (1) year of service for the purposes of making this calculation.

     



    What are the benefits of the IPVR?
    The primary benefit if you voluntarily relinquish your employment, tenure, and/or continuing status at the university is that you will receive a cash incentive payment that otherwise would not be available.

    If you are approved for participation in the IPVR you will receive a cash incentive amount equal to your FY11 annualized salary prorated by FTE. This annualized salary does not include any sums paid for summer session, winter session, supplemental compensation, UA Healthcare Clinical incentives, overload, professional/research allowance, or other one-time payments.

    Receipt of payments following retirement does not make youeligible for employment-related benefits such as accrual of vacation leave, sick leave, health insurance benefits, retirement contributions or deductions or additional credit for length of service.


    When will the cash incentive be paid?
    If you hold an academic year appointment and agree to retire on May 23, 2011, you will receive the cash incentive on June 17, 2011.

    If you hold a fiscal year appointment and agree to retire on July 1, 2011, you will receive the cash incentive on July 29, 2011.

    If contracted for a summer session appointment, your last day of employment, related retirement and incentive pay dates will be as follows:

    Employment Contract Ends Retirement Date Incentive Payment/Payday
    June 4 (Pre-Summer Session) Sunday, June 5, 2011 Friday, July 1, 2011
    July 9 (Summer Session 1) Sunday, July 10, 2011 Friday, July 29, 2011
    August 13 (Summer Session 2) Sunday, August 14, 2011 Friday, September 9, 2011


    Are there any other considerations I should take into account when deciding if I want to participate in the IPVR?
    Consultation with a financial planner, tax advisor and/or attorney is very important. The IPVR offers a very significant financial incentive, but it is critical that you consider the financial and personal impact of this date of retirement. Considerations include a potential change in retirement and social security income, tax implications and potentially higher premiums for health and dental coverage.


    What is the deadline for applying for the IPVR?
    Friday, March 18, 2011 is the last day the university will accept the “UA Incentive Program Voluntary Retirement Agreement and Full and Final Release of All Claims” from eligible employees. The signed release with your original signature, your supervisor’s original signature (director or department head) and the dean or vice president’s original signature must be received by the Provost’s Office before 5:00 pm.

    Applying for the IPVR is different than participating in the IPVR. IPVR participation is dependent upon acceptance of the agreement and release by the Office of the Executive Vice President and Provost. You will be notified of a decision on or before April 1, 2011.


    Can I revoke the Agreement and Release once it is executed?
    Yes. You have seven (7) calendar days from the date you sign the Agreement and Release to revoke your application. You must provide written notice of revocation to the Executive Vice President and Provost.


    Will every eligible person who applies for the program be approved to participate? Is there a limited amount of funding? Added 2/15/11
    The University will determine participation in the IPVR based on the best interests of the institution as a whole. Considerations include such matters as continuity of critical teaching operations and academic support for undergraduates, graduate students and post-doctoral research associates. These decisions will be made holistically, not on a first-come first served basis. There is limited, adequate funding.


    Do the IPVR benefits include health insurance coverage?
    You may apply for retiree health insurance through The Arizona Department of Administration or the Arizona State Retirement System; however, the university is prohibited under Arizona state law from expending any public funds for the payment of all or any part of the premium of group health and accident insurance for its retirees. You may also be eligible for Medicare and related insurance programs offered by the federal government and insurance companies.


    How long will my UA health insurance benefits (medical/dental/vision) continue? Updated 2/07/11
    Your UA health benefits will end on the last day of the pay period that includes your last day worked.


    I participate in the Healthcare Flexible Spending Account (FSA) Plan. How will retiring before the end of 2011 impact that account? Added 2/07/11
    After separation, you remain eligible to use the funds that you have already contributed to your Health Care FSA to reimburse yourself for qualified health care expenses. However, qualified expenses must have been incurred between January 1, 2011 and your last day worked. Claims can be submitted for reimbursement through April 30, 2012.

    If you are not able to incur enough qualified expenses prior to your retirement date and funds still remain in your account at that time, you may continue your FSA participation through COBRA. For more information on FSA COBRA, please contact Leslie White with ASI at 800-659-3035.


    I am an academic year employee and my benefit premiums for summertime coverage are being deducted each pay cycle through the spring semester (‘precollected’). Will these premiums be refunded to me?
    Yes, because your benefit coverage will end prior to the start of the next academic year, all or a portion (depending on your retirement date) of your precollected premiums will be refunded in your last regularly scheduled paycheck.


    What are my retiree health insurance options?
    You may elect retiree health insurance offered by the Arizona State Retirement System or the Arizona Department of Administration.

    For information on Arizona State Retirement System plans, visit:
    https://www.asrs.state.az.us/web/HealthInsurance.do

    For information on Arizona Department of Administration plans, visit: http://www.benefitoptions.az.gov/default.asp

    You may also be eligible for Medicare and related insurance programs offered by the federal government and insurance companies.You may wish to explore individual policies on the open market or through groups or associations to which you may belong.


    How do I obtain information on my retirement plan and other benefits?
    You are strongly encouraged to contact a retirement plan representative listed below for retirement plan information. To learn about other benefits, such as retiree health insurance, you may contact the University’s Benefits Office within the Division of Human Resources at 520-621-3662, option 3 or benefits@email.arizona.edu.

    Arizona State Retirement System members may view information at http://www.azasrs.gov and can schedule an appointment with a representative at its offices:

    7660 E. Broadway, Suite 108
    Tucson, AZ 85710-3775
    (520) 239-3100

    3300 North Central Avenue
    Phoenix, AZ 85012-0250
    (602) 240-2000

     

    Optional Retirement Plan participants may contact the following plan representatives for information and to schedule one-on-one consultations:

    VALIC
    Stephen Caine, (520) 405-5720

    Fidelity Investments
    Damond Petersen, (866) 588-2612 or (480) 284-1847
    Scott Thomas, (480) 263-1622

    TIAA-CREF
    Mark Largent, (866) 548-3705 ext 457749

     


    If I am a member of the Arizona State Retirement System, will I be able to include the incentive amount as compensation for the purpose of calculating my retirement under the Arizona State Retirement System plan?
    No. The cash incentive payment is paid after your final day of employment, and therefore, cannot be considered “compensation” for purposes of determining average monthly compensation.


    Can I purchase past service credit in the Arizona State Retirement System and increase my retirement benefit?
    Yes. Subject to the stated conditions of the Arizona State Retirement System plan, you may be able to purchase service credit for either past active military duty with an honorable discharge, for service worked under another public employer in the United States and/or previously forfeited Arizona State Retirement System service credit. Service purchase estimates can take time, therefore, please contact ASRS at (520) 239-3100, (800) 621-3778 as soon as possible if you are interested in purchasing service. More information is also available on the ASRS website at: https://www.azasrs.gov/web/ServicePurchase.do.


    Will mandatory retirement contributions be withheld from my incentive payment?
    No, your incentive payment will not include any mandatory retirement deductions.


    Can I direct part of my incentive payment toward a supplemental retirement savings plan such as a 403(b) or 457 deferred compensation plan?
    No. The IPVR payment will occur after retirement, and is not eligible for deferral under either type of plan.


    Will my IPVR payment be taxed?
    Yes. The IPVR payment is subject to all income-related taxes and appropriate withholding when paid. This includes federal and state income taxes and Social Security taxes (FICA Medicare and OASDI). We strongly encourage you to consult with a tax or financial advisor and a representative of your retirement plan to assess your individual financial situation.


    How will my lump sum incentive payment be processed and reported? Added 2/15/11
    Your lump sum incentive payment will be processed through UA payroll as taxable income, subject to all mandatory withholding requirements, and will be reported on your W-2 form for calendar year 2011.


    Can I get an estimate of what my incentive payment will be after taxes are withheld?
    Paycheck City has paycheck calculators on its website at http://www.paycheckcity.com/NetPayCalc/netpaycalculator.asp that can provide you with an estimate. This is only an estimate.


    How do I change my income tax withholding rates?
    You can make changes to both federal income tax withholding rates and Arizona state income tax withholding rates through UAccess Employee. Select Self Service → Payroll and Compensation → W-4 Tax Information or A-4 Tax Information.


    How can I minimize the tax implications from the incentive payment?
    Earnings received while still employed by UA are eligible to be deferred into 403(b) or 457 plans. By beginning to defer employment income early in 2011, the year when the IPVR payments will be taxable, you may be able to offset some of the increased tax liability. For 2011, you may defer the maximum allowable to a 403(b) plan (up to $16,500) and a 457 deferred compensation plan (up to $16,500). An IRS ‘catch up’ provision also allows employees age 50 and over to contribute up to an additional $5,500 per plan type each year. Based on your particular circumstances and levels of past years’ contributions, each of the 403(b) and 457 plans have catch up rules which may allow for even greater contributions. You are encouraged to consult with a tax advisor or financial planner. For more information on the 457 and 403(b) plans, including contact information, please visit http://www.hr.arizona.edu/supplemental_retirement_plans.


    In order to reduce my tax liability, can I split my incentive payment into two payments, one in calendar 2011 and one in calendar 2012?
    No. Because the full incentive payment is deemed taxable as soon as you become entitled to it, the incentive will be paid as one payment.


    I am on an academic year appointment, but my salary is paid over twelve months. Will this impact the IPVR payment that I am eligible to receive?
    No. The calculation of the IPVR cash incentive is based on your salary for the academic year regardless of how your pay is distributed.


    I am on an academic year appointment, but my salary is paid over twelve months. How will leaving employment at UA before the end of the twelve months affect my remaining payment? Added 1/31/11
    If you are an academic employee who agrees to retire on May 23, and elected to be paid over twelve months, you will receive a lump sum payment of your remaining AY11 salary in your final paycheck on June 3, 2011.

    May I have my IPVR payment made through direct deposit into a bank account?
    Yes. If your current paychecks are being handled through direct deposit, the university will automatically send your IPVR payment to the same direct deposit account. If you have not used direct deposit before, you may enroll through UAccess Employee. Select Self Service > Payroll and Compensation > Direct Deposit.


    What happens to accrued and unused vacation leave under the IPVR?
    Faculty on academic year appointments do not accrue vacation hours. Academic professionals and fiscal year appointees may earn vacation hours in accordance with the provisions of ABOR Personnel Policy 6-801 and UHAP Policy 8.01.01.  Generally, a maximum of one year's accrued vacation is eligible to be paid out upon separation from university employment. Payment is made at your current rate of pay in your final paycheck. Academic faculty who move to fiscal year appointments may have other arrangements for accrued and unused vacation leave as specified in their letter of appointment.


    What happens to accrued and unused sick leave under the IPVR?
    If you have 499 hours of sick leave or less at the time of retirement, those accrued sick hours will be forfeited.

    If you have at least 500 or more hours of accrued, unused sick leave at the time of retirement, you may be eligible for the Retiree Accumulated Sick Leave Program administered by the Arizona Department of Administration’s General Accounting Office (GAO). The Retiree Accumulated Sick Leave Program is authorized by ARS §38-615 and 38-616. This program allows you to elect a cash payout of your sick leave over a three (3) year period. You must be drawing benefits from the Arizona State Retirement System or from the Optional Retirement Plan to be eligible for payment of unused sick leave.

    To determine your current balance of accrued and unused sick leave, go to your timesheet in UAccess Employee. At the bottom of your timesheet, select “Balances – Click to View”.

    The Retiree Accumulated Sick Leave programis not related to the IPVR in any way.


    How is the Retiree Accumulated Sick Leave Program payout calculated?
    Under this program, you receive a cash payout for the unused sick hours up to 1500 hours. The total dollar value is calculated at:

    Current hourly rate of pay x actual number of unused hours x applicable % rate

    500 to 749 hours = 25%
    750 to 999 hours = 33%
    1000 to 1500 hours = 50%
    There is a $30,000 cap on the payout, limiting the annual payout to $10,000 over not more than 3 years. The first Retiree Accumulated Sick Leave Program payment may be rolled into a 457(b) plan with the State-sponsored deferred compensation provider.

     

    For more information about this program, including how to apply, visit the Human Resources website at http://www.hr.arizona.edu/retiree_accumulated_sick_leave_rasl and GAO’s website at: http://www.gao.az.gov/rasl/default.asp.


    How can I find out about my Social Security benefits and the effect of my IPVR payments on Social Security?
    The Social Security Administration provides information on-line at: http://www.socialsecurity.gov/pubs/index.html.

    The general toll-free phone number for the Social Security Administration is 1-800-772-1213.

    You may also visit the Social Security Administration’s Tucson office located at:

    3500 N. CAMPBELL AVE
    TUCSON, AZ 85719
    HOURS: Monday – Friday 9:00 a.m. - 4:00 p.m.
     

    Other office locations can be found at: http://www.ssa.gov/

    Special payments after retirement are addressed here: http://www.socialsecurity.gov/pubs/10063.html

    Special rules for the first year of retirement are addressed here: http://www.socialsecurity.gov/pubs/10069.html#count

    You are strongly encouraged to review the entire Social Security website and/or contact a Social Security Administration official to learn about how IPVR participation may impact Social Security benefits.


    Can I work for the University of Arizona again after I retire?
    You may not be rehired for the remainder of calendar year 2011, although exceptions to this provision will be considered in extraordinary circumstances. Potential re-employment for IPVR participants must be reviewed by the Office of General Counsel and approved by the Office of the Executive Vice President and Provost.

    For return to work rules under the retirement plans, please visit the Arizona State Retirement System website at https://www.azasrs.gov/content/pdf/fact_sheets/Working_After_Retirement.pdf or the Optional Retirement Plan document at http://www.hr.arizona.edu/optional_retirement_plan. Before considering re-employment, you are strongly advised to consult with the appropriate retirement plan representative.


    I have grants that run past the end of spring semester 2011. Can my retirement date be extended beyond May 23, 2011 (AY) or July 1, 2011 (FY)?
    No. You must retire on one of the dates specified in the IPVR policy.


    May I continue as a Principal Investigator on grants/contracts if I retire under the Incentive Program for Voluntary Retirement? Added 2/15/11
    IPVR participants cannot be paid for employment with the university, including any payment from grants/contracts that is processed through the university’s payroll system. Generally, an individual who is not a paid employee of the University is not authorized to be a PI or to sign on sponsored accounts.

    A department may choose to use a type of volunteer role, the UA Associate agreement. With university and sponsor pre-approval, this volunteer role may be available to you. Depending on the circumstances, a UA Associate may be approved to serve or continue as a PI on a grant/contract, and may be reimbursed for grant-related expenses.

    Information on the UA Associate program is available here.

    You should discuss your specific situation, including details about your grant/contract, with your department head and dean. Additional consultation resources could include Sponsored Projects and the office of the Vice President for Research.


    Can the timeline be extended to provide time to transition graduate students? Added 2/15/11
    No. The retirement dates were finalized as part of the program design.


    I currently chair doctoral committee. May I continue to serve in this capacity after my retirement? Added 2/15/11
    If an individual is granted Emeritus status, and appointed as a UA Associate by his/her department, he/she may continue to chair doctoral and master’s committees in accordance with Graduate College policy for one year after retirement. Potential extensions may be considered on an individual basis, and are subject to review by the Graduate College. The policy allows retired faculty to serve in other roles on doctoral committees, which requires approval as a special member and renewal/re-approval every 3 years.


    Will my IPVR payment be payable to my estate if I die before receiving it?
    Yes. If you die prior to receiving the IPVR payment, the university will make the cash incentive payable to your estate.


    I’m not certain that I want to participate in the IPVR this year. Can I wait until next year?
    No. IPVR is a “window plan” and is only being offered for the time period of January 28, 2011 through March 18, 2011. This program will not become an ongoing feature of UA employment.


    I would like to retire under different terms. Is that something I can discuss now?
    Yes. Individuals who are Arizona State Retirement System members have an option to retire and return to work at .49 for the year following their retirement. Optional Retirement Plan participants are eligible to participate in the University’s Phased Retirement Program:
    http://www.hr.arizona.edu/abor_phased_retirement_program_for_orp_participants. Reducing your full-time-equivalency without retiring or entering the Phased Retirement Program may also be possible.


    Are there alternatives to the Incentive Program for Voluntary Retirement? Added 2/15/11
    Yes. Participants in the ABOR Optional Retirement Plan (ORP) who are at least 62 years old may wish to consider the Phased Retirement Program (PRP). This program allows you to reduce your FTE for up to 3 years, AND have immediate access to your ORP retirement investment account funds.


    May I be considered for emeritus status if I accept the IPVR? Added 1/31/11
    Yes, you may be considered for emeritus status; however, you may not be rehired by the university for the remainder of 2011 except under extraordinary circumstances. Any future university reemployment must be reviewed by the Office of General Counsel and the Executive Vice President and Provost.


    Can a professor granted emeritus status keep his/her office? Added 2/15/11
    Each department negotiates resources available to a person granted emeritus status. (UHAP policy 3.22 “Emeritus Status”) Contact your department head for information related to your request and the departmental resources.


    I am currently on sabbatical. UHAP Policy 8.03.02 Sabbatical Leave states that I am required to “return to the university for a period of further service equal to the length of the leave.” Will that be waived if I choose to participate in IPVR?
    Possibly. The return requirement may be waived with approval of the Office of the Executive Vice President and Provost.


    If I participate in the IPVR, will I be eligible to join the UARetirees Association (UARA)?
    Yes. For more information on UARA, visit http://uara.arizona.edu/.


    Will I receive official UA retirement status if I participate in the IPVR?
    If you have completed five years of continuous, full-time employment in the Arizona University System (or approved leave of absence or long-term disability) immediately preceding retirement, you would receive official UA retirement status. Employees who are granted Official University Retirement Status by the University are eligible for certain fringe benefits after retirement.  Your CatCard will provide you with University Library loan privileges and discounts at the UA bookstores, athletic events, and the student recreation center.  You will also be eligible for a free Zone 1 retiree parking permit. More information is at http://www.hr.arizona.edu/summary_of_retirement_benefits.


    I am a tenured faculty member paid through the UA payroll system, and I am an authorized signer on a UA Foundation account. If I participate in the IPVR and retire from the UA at the end of this fiscal (or academic) year, may I continue to access these UA Foundation funds? Added 2/11/11, Updated 2/15/11
    The University of Arizona and the University of Arizona Foundation are two separate entities. The UA Foundation is not considered a participating employer under the ABOR Optional Retirement Plan nor under the Arizona State Retirement System. The UA Foundation accepts funds for the benefit of the University, and accounts are restricted by donor intent. Generally, individuals who are no longer employed by the University do not have authority to control Foundation accounts. If you have questions about your ability to access UA Foundation funds after your retirement, please consult with your departmental business office.


    Will the money stay in the department? Added 2/15/11
    Salary savings will be retained in the college/department in accordance with existing college/ departmental practices.


    If an individual retires and he/she would have taught class(es) in AY 2011/2012, will those classes still be offered, and if so, who funds the teaching position(s)? Added 2/15/11
    Department heads are encouraged to consult with their deans regarding funding for classes.


    How do the ABOR and UA Intellectual Property policies apply to work I produce while at the UA? Added 2/15/11
    The ABOR and UA Intellectual Property policies may be found at http://www.ott.arizona.edu/content/policies. In general, the Arizona Board of Regents has ownership rights to work you produce either as i) an employee; ii) utilizing University administered funds; or iii) accessing or making substantial use of University resources. Under ABOR policy 6-908, the Board generally does not claim copyright ownership rights to scholarly works, but there are exceptions. Since every case is unique, please review the policies; specific questions may be addressed to the UA Office of Technology Transfer at 520-621-5000 or http://www.ott.arizona.edu/contact.


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