Iowa Regents to shorten time for phased retirements at UI, ISU, UNI

Press Citizen

Faculty members and other long-term employees at Iowa’s three public universities won’t have as long of a period to phase out their retirement under a new policy proposed by the Iowa Board of Regents.

Older employees who have worked at least 15 years in the regent system currently have the option of implementing a phased retirement plan over a five-year period. The regents are looking to shorten that period to two years at most.

A first reading of the proposed policy is included in the consent agenda portion of the regents’ June 8 meeting in Cedar Falls.

Regent policy does not include any mandatory retirement age, and since 1982 the board has offered phased retirement options as incentive for long-term employees – who often are making higher salary because of tenure and seniority – to retire sooner rather than later.

“The proposed changes would give the institutions additional flexibility and predictability in managing the phased retirement plan, while still allowing for employees to utilize phased retirement as an option,” Josh Lehman, a spokesman for the regents, said via email.

Faculty leaders at the universities say they are pleased the program is continuing in some form, but question whether two years will be enough time.

"Renewal of the phased retirement program is important because it provides the universities with a mechanism to smoothly transition teaching and research programs from retiring faculty to a new generation of faculty," said Peter Synder, president of the UI Faculty Senate, via email. "However, for many faculty, the proposed two year maximum phasing period will be too short to be fully effective."

The current policy is set to expire June 30. If approved, the new policy would remain in place until 2022.

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The regents' annual HR reports show that, over the past five years, the program attracted 321 new entrants across the regent system. Slightly more than half of those participants are faculty members.

The money saved because of the programs during that time ranged annually between $5.5 million and $6.2 million, according to regents reports. The incentive money paid out to the participating employees, however, ranged annually from $2.7 million to $4.4 million.

The eligibility requirements for the program would not change under the new policy. Faculty and staff members must be 57 or older with at least 15 years of service in the regent system. Any schedule for phased retirement agreement still would need to be developed between the employee and the department, and the agreements still need to be approved at various levels within each institution.

Under the new policy, employees seeking a two-year phased retirement can work no more than 65 percent of full employment during the first year of no more than 50 percent for the second year. Once phased retirement is initiated, employees may not return to full-time.

The policy allows the institution and staff member contributions will continue for life insurance, health insurance, and disability insurance at the same levels that would have prevailed had the staff member continued at a full-time appointment.

The regents will have to hold a special meeting before June 30 to vote on a second reading of the policy before the current program expires.

A 2015 study by the TIAA Institute found that, with so many workers retiring later than average, the academic workforce has aged more rapidly than the rest of the nation.

If more of those reluctant retirees can't be persuaded to retire closer to the traditional age, the study authors suggest, higher education institutions will face a host of inevitable consequences — costing universities and taxpayers more, while potentially doing a disservice to both younger faculty and students alike.

Early retirement

The regents also are considering implementing an early retirement program for Board Office staff members who are 57 or older and have at least 10 years of continuous employment. If approved by the board, qualifying employees will have between June 9 and July 24 to apply.

The program would allow the payment of accrued vacation and accrued sick leave up to $2,000. The regents also would continue to pay the employer's share of health and dental coverage for five years.

Similar earlier retirement programs were offered in 2015 and 2016.

The 2015 program is at the heart of a wrongful termination and gender discrimination suit filed in April against the board by its longtime former communications director.

Sheila Koppin, who had worked for the board for nearly three decades, argues in the suit that the board's executive director, Bob Donley, had dodged her questions for months about whether she should apply for early retirement program in 2015. Her job was then eliminated after the window had elapsed for applying for the program.