The University has recently approved a Phased Retirement Program. This program provides eligible employees the opportunity to transition into retirement by reducing their appointment percentage over a period from 120 days up to three years. This program is part of the University’s budget reduction and succession planning strategies.
Under the program, an eligible employee may request to voluntarily reduce his or her percentage of appointment and salary for a minimum period of 120 days up to a maximum period not to extend beyond December 31, 2014. If the employee continues to participate in the program beyond one year, they must reduce their appointment by at least 10% in each subsequent year of participation. In return the employee receives specified advantages, such as vacation and sick leave accruals based upon their pre-reduced appointment percentage. Additionally, participants receive a lump sum cash payout upon retirement that is equal to half the amount of their reduction in time. The employee must retire at the end of their program contract in order to receive their cash incentive payment.
To be eligible for participation in the program an employee must be an active UCRP member aged 55 or over with five years of retirement service credit and with a career staff appointment of 60% time or greater as of their approved enrollment date in the program. Non-represented staff employees and employees represented by the Coalition of University Employees (CUE) are eligible to participate. Senior Management Group members and academic employees are not eligible for this particular program. For all other employees represented by unions, eligibility is subject to collective bargaining.
UCSC will be implementing the Phased Retirement Program effective March 1, 2012 through December 31, 2014. Principal Officers are delegated the authority to determine whether to make this program available to their employees on a divisional basis. Additionally, individual requests to participate in the program are subject to the approval of departmental management based upon operational needs and service requirements.
Employees who may be considering participation in the Phased Retirement Program should first talk with their supervisors/managers to ensure that their division will be accepting applications. For those employees requesting participation in the Phased Retirement Program beginning March 1, 2012, completed and approved Phased Retirement contract forms must be received by the appropriate Employee and Labor Relations (ELR) Analyst no later than February 24, 2012. Thereafter, for employees requesting participation in the Phased Retirement Program effective the first of any given month, completed and approved Phased Retirement contract forms must be received by the appropriate ELR Analyst no later than the 25th of the month prior to the effective date.
Contract Forms and the full program description regarding the Phased Retirement Program plus detailed FAQ’s are available at the At Your Service Website
UCSC Phased Retirement Program Summary and Local Implementing Procedures are available at the SHR Website
Questions regarding the Phased Retirement Program should be directed to your Employee and Labor Relations (ELR) Analyst.
Questions regarding any potential impact upon your benefits and/or retirement should be directed to the campus Benefits Office.