Tenured Faculty Incentivized Retirement Program Overview
Below you will find an overview of the Tenured Faculty Incentivized Retirement Program, including eligibility requirements, incentive payment details and the application process.
The retirement incentive will take the form of a one-time payment equal to 50% of base salary for eligible faculty members who choose to participate. To be eligible, faculty members must be employed with the University as of February 1, 2011 and meet the criteria listed below. Please note: Faculty who provide clinical patient care and who meet the definition of "tenured clinician faculty" are ineligible for the Program. Eligible faculty who elect to participate must complete these steps:
- Submit an incentive application by 5 p.m. on February 21, 2011.
Click here to request an application (online, by phone or via e-mail)
and for details regarding the application process.
- Submit a separation of employment waiver/agreement
(provided to those who apply) no later than 5 p.m. on April 11, 2011.
Below, you will find additional information on program eligibility guidelines, incentive payment and application process for the incentive.
For more detailed documentation regarding this program, click here.
Tenured faculty members age 65 or older with 15 years of continuous service (by December 31, 2011) and employed are eligible for the retirement incentive offer. Faculty members meeting these criteria who have submitted retirement or resignation papers, but not reached their actual retirement date, are eligible.
Because phased retirement agreements are non-revocable, any tenured faculty member in phased retirement is not eligible for this program. This offer is also not available for faculty with retirement dates on or before this announcement.
Faculty participating in the incentive program must retire by January 3, 2012. A faculty member who has previously scheduled a retirement date before January 3, 2012 may take advantage of this offer pending approval of his or her dean. Other exceptions will be considered with the approval of the college dean (but still no later than January 3, 2012).
Participating faculty will receive a one-time payment equal to 50% of their current base salary (9-month, 10-month or 12-month salary without additions). Calculations for the incentive payment will be based on salary in effect on February 21, 2011; any future pay increases will not be recognized in the incentive payment.
For the purposes of this program, “salary” means a faculty member’s guaranteed base salary regardless of sources; salary does not include temporary stipends or other supplements given as part of a temporary assignment of administrative or other duties. Incentive payments are limited to $150,000 (reflecting up to $300,000 in base salary).
Retirement incentives will be paid (in a lump sum) on the final paycheck (no later than December 30, 2011).
Payments will be subject to FICA and other withholding taxes (as applicable). There will be no individual changes to the timing of the payment. No employee or employer matching retirement account contributions will be made on the payment. Voluntary tax sheltering opportunities under 403(b) and 457(b) are available.
Step 1 - Submit an incentive application by 5 p.m. on February 21, 2011
Any eligible faculty interested in applying for the retirement incentive may request an application starting January 24. Completed applications must be received by 5 p.m. on February 21, 2011.
Step 2 – Learn more about this incentive and your retirement options
upcoming events with UK Employee Benefits, University retirement carriers and Social Security
I encourage you to take advantage of upcoming informational events (click here for details) and to learn more about this offer as it relates to your personal circumstances.
You may also consider meeting individually with a representative from your University retirement carrier. To schedule a one-on-one meeting, please contact your retirement carrier at the number listed below.
Fidelity - 800-642-7131
TIAA-CREF - (859) 224-6900
Please note: To RSVP for TIAA-CREF Wealth Management seminar planned for February 17, 2011 at 6:00 p.m. in the Boone Center, contact Irene Jordan at (859) 224-6904.
Step 3 – Faculty who submit an application must return a complete separation of employment agreement/waiver no later than 5 p.m. on April 11, 2011.
Click here for further details regarding the application process.
You may contact the Office of the Provost's Margaret Leach of with any questions regarding the application process:
Phone: (859) 257-7017
Fax: (859) 323-4622