University of Minnesota  Procedure

Implementing the Phased Retirement Program


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Please use the contact section in the governing policy.


The employee, the unit administrator, dean or other appropriate senior leader, and the Senior Director, Total Compensation (Office of Human Resources or OHR) must document and sign the arrangement in writing before the terms become binding. All parties must mutually agree to an amendment to the agreement. The amendment must comply with the policy, must be in writing, must be signed by the parties, and is not effective until signed by the dean or other appropriate senior leader and the Senior Director, Total Compensation (OHR).

  1. Termination of Appointment

    Termination from University employment becomes effective on the last day of employment. The last day of employment must be mutually agreed upon by the faculty member or the continuous academic professional, the unit administrator, dean or other appropriate senior leader, and the Senior Director, Total Compensation (OHR). The individual may not negotiate future University employment prior to termination and may not be rehired at the University for a minimum of 6 months following the last day of employment. Any employment following the last day of employment is limited to 19.5 hours per week (non-benefits-eligible).

    At the conclusion of the Phased Retirement Program, the individual’s employment terminates including their tenure/continuous appointment.

  2. Release Statement

    The individual must sign two releases in the Phased Retirement Program: a special release statement on the last day of regular appointment and a second release on the last day of employment. Both releases must be forwarded to OHR. Release statements signed prior to these dates will not be accepted. The individual will receive no benefit under this agreement until both releases are signed and received by OHR.

  3. Departmental Procedures
    1. Notify the tenured faculty member or continuous appointment academic professional of the right to consult legal counsel.
    2. Certify the employee's eligibility for the program.
    3. Complete the department's section of the Phased Retirement Agreement. Ensure that the budget number is provided on the agreement and that the unit administrator signs both sides of the agreement. Only unrestricted non-sponsored funds may be used.
    4. Photocopy the agreement and forward the original for the appropriate signatures: dean, provost, chancellor, and/or vice president.
    5. Send the signed original agreement and the Initial Release to the Senior Director, Total Compensation (OHR) for approval.
    6. After the college receives a fully-executed copy of the agreement, complete initial payroll data entry in PeopleSoft according to the job aid instructions included in the Phased Retirement Job Aid.
    7. At the end of the phased retirement, complete the final steps as instructed in the job aid for Ending a Phased Retirement.
    8. Have the employee sign the Subsequent Release on the last day of employment and forward it to OHR.
    9. If vacation needs to be paid out, send vacation balance verification to OHR.
  4. Employee Benefits Procedures

    After receipt of the Subsequent Release, and the expiration of the 15 day rescission period, enter the Action/Reason on the Job Data panel in PeopleSoft and take the full charge for the cost of the Health Care Savings Plan (HCSP) deposit against the budget account provided on the Phased Retirement Agreement. Deposit the HCSP lump sum in the employee's account at the Minnesota State Retirement System.

  5. Employee Procedures
    1. Complete the employee portion of the Phased Retirement Program and submit to department.
    2. Turn in the Phased Retirement Agreement and the signed Initial Release form to the department.
    3. Complete additional paperwork if you wish to continue UPlan coverage. These forms can be completed during a retirement appointment with an Employee Benefits Counselor, which should be made at least two (2) months prior to retirement and can be scheduled by calling the OHR Contact Center. If the proper retirement paperwork is not completed, retiree medical and dental coverage will not continue after retirement. If you choose not to continue coverage, you are not eligible to rejoin the UPlan Retiree Group in the future. If you are not eligible to join the UPlan Retiree Group, you are eligible for COBRA continuation of coverage, which may be exercised by contacting the OHR Contact Center for election forms and additional information.
    4. Sign the Subsequent Release and appropriate benefit forms on the last day of employment and forward to OHR.