University of Iowa employees could begin applying for early retirement Feb. 6

IOWA CITY - The University of Iowa is sharing with employees updated information around a proposal to offer an early retirement incentive this year.

The institution's 2015 Early Retirement Incentive Program first was introduced last month as a potential topic for the Board of Regents to address during its December meeting. But the proposal was not included on that month's agenda, and UI officials said they hope the board will consider approving it during its upcoming February meeting.

If regents approve the UI program on Feb. 5, and if they don't change the eligibility requirements and incentives, officials will inform the campus' eligible employees that day, UI Vice President for Human Resources Susan Buckley said during a recent staff council meeting.

Employees will be allowed to submit requests beginning Feb. 6, and each request will go through several reviews before being approved or denied, Buckley said. Eligible employees will receive their final reminder to apply, if interested, on Feb. 16, and the deadline for applying will be midnight March 6, according to the updated proposal.

Buckley said her office must complete its reviews by April 14. The original timeline outlined in the proposal distributed last month set the application period Jan. 6 and Feb. 20, but that was adjusted after the proposal didn't make the board's December agenda.

Both proposals require employees who are accepted for the program to fully retire no later than June 30, the end of the budget year. The early retirement incentive is tied to an efficiency review underway at Iowa's public universities that has produced cost-saving recommendations expected to save millions and eliminate hundreds of positions.

University officials have said they hope to accomplish job cuts through attrition, and the retirement program could ensure that happens.

According to details of the UI proposal released last month, employees must be 57-years-old with at least 10 years of continuous benefit-eligible employment at the university to apply. UI Health Care employees and those on phased retirement plans won't be eligible for this program.

Proposed benefits include payment of accrued vacation, payment of accrued sick leave not exceeding $2,000, payment of the standard share of health and dental coverage for five years, and payment of the employer's and employee's retirement contributions for three years, followed by two years of just the employer's contribution.

Buckley told staff members this month that department heads can't approach or encourage employees to apply and that decisions about who is approved will be based on several factors, including potential savings for the university, talent retention within a department, and other unintended consequences - like morale among remaining employees.

Employees who are denied can go through an appeals process, if they choose, Buckley said.

UI employees were offered early retirement incentives in 2009 and in 2010 as part of budget cuts. About 600 UI employees applied for early retirement in 2009, exceeding savings expectations, according to Board of Regents documents.