UAMS ADMINISTRATIVE GUIDE
|AREA:||INSURANCE & BENEFITS|
|SUBJECT:||VOLUNTARY EARLY RETIREMENT FOR NON-TENURED FACULTY AND STAFF|
In accordance with Arkansas Act 271 of 1983, and Act 296 of 1995, the University of Arkansas for Medical Sciences is authorized to make available to eligible non-tenured faculty members and staff employees the opportunity to receive certain benefits in exchange for immediate retirement. Participation is strictly voluntary and is not mandated upon either eligible non-tenured faculty or staff or UAMS. Participation is not entitlement, but may be available to qualified non-tenured faculty members and staff employees when:
DEFINITION OF TERMS
Financial incentives to be offered may include, but are not limited to:
The Chancellor will determine the maximum stipend amount for each election window. However, the total stipend amount paid to an eligible employee under an agreement may not normally exceed 50% of the employees final salary with UAMS.
Before a Voluntary Early Retirement Agreement can be approved, savings in salary and fringe benefits costs to the Medical Center must be demonstrated. The cost savings must be realized within seven years of the effective date of retirement. A cost savings will be determined for each year of the seven-year period by subtracting the retirement cost and replacement cost from the retention cost. The fact that a cost savings is not shown in one year will not prevent an employee from qualifying for a Voluntary Early Retirement Agreement if a total cost savings can be realized over the seven-year period. For purposes of this determination,
"Retirement cost" means the costs of all salary and benefits, including future part-time teaching, research, or other employment related costs of the eligible, including the Universitys portion of FICA taxes;
"Replacement cost" means the estimated salary and fringe benefits cost of the individual or individuals who will be employed to fill the position or responsibilities of the retiring eligible employee;
"Retention cost" means that the last annual salary and fringe benefits cost of the retiring non-tenured faculty member or staff employee, including any increases in salary or fringe benefits approved prior to the effective date of the Voluntary Early Retirement Agreement.
The maximum dollar value of benefits that can be received under a Voluntary Early Retirement Agreement is the annual salary of the retiring employee for the current fiscal year or such lesser amount as is necessary to show a cost savings to the University within seven years.
FUNDING OF VOLUNTARY EARLY RETIREMENT AGREEMENTS
All cost associated with a Voluntary Early Retirement Agreement, including stipends, FICA on stipends, wages, FICA on wages, contributions to retirement accounts, reimbursement of major medical and/or life insurance premiums, and any other costs will be the sole responsibility of the department.
TIME OF AVAILABILITY
Proposals for Voluntary Early Retirement of qualified non-tenured faculty members and staff employees of UAMS will be considered during announced periods of time or windows of opportunity, with retirement to take place at the convenience of the employing department or other unit, but no later than the end of the current fiscal year. Subject to the approval of the Chancellor, UAMS may consider proposals for voluntary early retirement during as many or as few time periods or windows of opportunity as it determines are in its best interests to offer. A window of opportunity may be opened to non-tenured faculty only, to staff only, or to both. There is no requirement that any such opportunities be offered at a later date nor that they will be offered on a regular basis. The University also reserves the right to modify the number of years of continuous employment required for eligibility and the form of benefits available during any given window of opportunity, subject to approval by the Chancellor and in accordance with applicable policies. A request for early retirement must be in writing and must be received by the head of the department and the appropriate supervisor within the window incentive period to be considered under this policy.
Proposals for voluntary early retirement will be received only from eligible employees who are at least 55 years of age and who have been continuously employed 50% or greater for at least 15 years on the effective date of their retirement. Eligible employees may not currently be on leave without pay or receiving either long-term disability insurance benefits or workers compensation benefits.
Eligible employees who have had no more than three years in a leave-without-pay status are not prevented from entering into an early retirement agreement as long as they can otherwise show 15 years of full-time employment. Years of employment will be calculated in whole year increments. In the case of an individual on a 12 month appointment, fractions of years of employment that are 6 months or less will be rounded down to the next lowest full year. Fractions of years of employment that are greater than 6 months will be rounded up to the next highest year. In the case of an individual on a 9 or 10-month appointment, years of employment will be calculated with the fall and spring semester each representing half a year. Time spent in an "off-campus duty assignment" will be counted in computing continuous employment.
VOLUNTARY EARLY RETIREMENT AGREEMENT
STATEMENT OF ASSURANCE
This agreement is entered into by and between , a non-tenured faculty member or staff employee of the University of Arkansas for Medical Sciences, and the Board of Trustees of the University, on this the day of , 19 .
That he or she has been an employee of the University since and currently holds the title of .
That he or she is not on leave-without-pay status, receiving long-term disability insurance benefits, or receiving workers compensation benefits;
That on his or her own initiative, he or she has sought an agreement for early retirement, pursuant to Arkansas Code Annotated §24-7-102 and University wide Administrative Memorandum 430.0;
That he or she has been apprised of his/her rights under the Age Discrimination in Employment Act as amended;
That he or she has been advised and has had the opportunity to seek the advice and counsel of attorneys, accountants, and others who could aid her/him in making an informed decision regarding the Voluntary Agreement;
That he or she has been given at least 45 days to consider his or her voluntary early retirement; and
That he or she does hereby voluntarily resign his/her position as
effective , recognizing that his/her employment with the University of Arkansas for Medical Sciences will then end.
The Board of Trustees of the University of Arkansas for Medical Sciences hereby accepts such voluntary resignation and agrees to provide:
This agreement shall be binding on the employee described above and on his/her heirs, estate, and personal representatives, and on the Board of Trustees and its successors; provided, however, that (1) any agreement to pay for part-time services shall terminate for all unaccrued and unearned amounts on the death of the employee described, and (2) all other rights and/or obligations to or for the benefit of the faculty member or staff employee shall terminate at her/his death.
All earlier oral or written agreements regarding employment, between the Board of Trustees of the University and/or the University of Arkansas and are superseded by this agreement. This agreement does not affect or alter the rights, privileges, or options accrued to this date which now has under pension (annuity), insurance, or other plans (if any) in which has participated and to which the University has made contributions, nor any rights, privileges, or options to which retired faculty members or staff employees are entitled because of that status or eligible thereto.
Witness: Board of Trustees of the University of Arkansas for Medical Sciences
EARLY RETIREMENT PROGRAM
WAIVER OF 45 DAY CONSIDERATION
I, , hereby waive the 45 day period for consideration of the terms of and my participation in the voluntary early retirement program for the University of Arkansas for Medical Sciences. I further state that:
I have voluntarily sought this agreement on my own initiative;
I have been apprised of my rights under the Age Discrimination in Employment Act; and I have been advised and have had the opportunity to seek the advice and counsel of attorneys, accountants, and others who could aid me in making an informed decision regarding the terms of my early retirement agreement.
EARLY RETIREMENT PROGRAM
STATEMENT OF ASSURANCE
By my signature below, I, , do hereby
assure the members of the Board of Trustees of the University of Arkansas that I have voluntarily sought participation in the University of Arkansas Voluntary Early Retirement Program for Staff and Non-Tenured Faculty; that I have been apprised of my rights under the Age Discrimination in Employment Act; and that I have been advised and have had the opportunity to seek the advice and counsel of attorneys, accountants and others who might assist me in making an informed decision concerning the Program.
UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES
EARLY RETIREMENT PROGRAM
POSITION & DEPARTMENT:
DATE OF RETIREMENT:
YEARS ON APPOINTMENT:
AGE AT RETIREMENT:
CURRENT APPOINTMENT PERIOD (9 OR 12 months)
SALARY CURRENT YEAR:
|COSTS AND SAVINGS|
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