HR3810 - Early Retirement
Procedures
Section: HUMAN RESOURCES PROCEDURES
SubSection: EMPLOYMENT
Master List Section: Human Resources
- Institutional Regulations
- The College shall offer a voluntary early retirement benefit with July 1 (last employment date June 30), September 1 (last employment date August 31) for 12 Month Faculty/Counselors/Librarians only, and January 1 (last employment date December 31) as retirement options. Regular full-time and part-time employees shall be eligible for the College early retirement benefit if they:
- Have attained the age of 55 on or before:
- June 30 of the fiscal year in which July 1 or September 1 retirement is requested; or
- December 31 of the fiscal year in which January 1 retirement is requested; and
- Have worked the most recent 10 years for the College without a break in service; and
- Have been actively employed by the College for the last employment year prior to early retirement.
- An employee may elect to participate in the early retirement program for a period of seven years from the date the employee first meets the eligibility criteria. If an otherwise eligible employee fails to elect to participate in the program by the end of the seven year eligibility period, the employee will no longer be eligible to participate in the program.
- An absence due to the College’s reduction-in-force policy of less than 60 days or an approved leave shall not constitute a break in service. Other voluntary interruptions of service shall constitute a break in service.
- An employee shall not be considered to be actively employed during their last year of employment if on a leave without pay for the entire 12 months preceding the retirement date.
- An employee on leave with or without pay who is not intending to return to active employment, shall elect the next available early retirement offering provided they are eligible.
- The employment year shall be that period covered by a continuing contract or an employment agreement, or for employees not covered by a contract or agreement, it shall be the fiscal year.
- An employee electing to participate in the early retirement program is eligible for rehire by the College only as an Adjunct instructor or Temporary employee.
- An employee who elects early retirement cannot work for DMACC for 1 full month following their retirement date, regardless of the retirement plan (IPERS or FutureTracc) or if the employee is drawing retirement benefits.
If the retiree is drawing their IPERS benefit, and wants to remain in IPERS, they must stay out of all IPERS covered employment (see HR3105 ) for a total of 4 months. The College could rehire an IPERS retiree into a retirement-covered position after one month, if the retiree now elects FutureTracc rather than IPERS.
If the retiree is drawing their FutureTracc benefit they must stay out of all FutureTracc retirement-covered employment. The retiree cannot draw a FutureTracc benefit at the same time that they are contributing to FutureTracc. The College could rehire a FutureTracc retiree back into a retirement-covered position after one month, if the retiree now elects IPERS rather than FutureTracc.
I. The College makes no representation as to any tax effects or effects on IPERS or other retirement benefits as a result of
participating in the early retirement program and/or subsequent reemployment with the College.
II. Procedure
- A request for early retirement must be received by Human Resources no later than the Friday before the September Board meeting in the fiscal year in which January 1 retirement is requested; or no later than the Friday before the December Board meeting of the fiscal year in which July 1 or September 1 retirement is requested. A request shall be required as designated by HR.
- The early retirement benefit shall be calculated based on the employee’s years of service as a Regular employee of the College.
- Service years shall be calculated on the same basis as the Iowa Public Employees Retirement System. Credit for all DMACC Regular years of service shall be given when calculating benefits.
- The retirement benefit shall be a beginning benefit of 70% of the employee’s annual salary during the year of request, plus an additional 2% of salary for each year of service beyond 10.
- Years of Service - Percentage of Salary
- 10 years - 70%
- 11 years - 72%
- 12 years - 74%
- 13 years - 76%
- 14 years - 78%
- 15 years - 80%
- 16 years - 82%
- 17 years - 84%
- 18 years - 86%
- 19 years - 88%
- 20 years - 90%
- 21 years - 92%
- 22 years - 94%
- 23 years - 96%
- 24 years - 98%
- 25 years - 100%
The maximum retirement benefit shall be 100% of the employee’s annual salary during the year of request for 25 or more years of service.
- The College shall pay the cost of the single medical premium until the retiree qualifies for Medicare for retirees who elect to remain in one of the College’s group plans.
- The retiree may, at their own expense, continue tiered family coverage equal to that carried at the time of their early retirement.
- In all cases, the retiree shall be subject to the coverages, carriers, and cost as determined by the Board.
- The College shall provide single dental insurance for 36 months for retirees who elect to remain in the College’s group plan. In all cases, the retiree shall be subject to the coverages, carriers, and cost as determined by the Board.
- Requests for early retirement must be approved by the President and the Board. The President must exhibit to the Board that granting an early retirement request is not detrimental to an academic program.
- The early retirement benefit shall be paid in two or more equal payments to a non-elective 403(b) plan not to exceed annual IRS 415 limits.
For those employees electing the July 1 option, the first payment shall be made within the first 5 work days of July. The second payment shall be made within the first five work days of the following January.
For those 12 month Faculty, Counselors or Librarians electing the September 1 option, the first payment shall be within the first five work days of September and the second payment shall be made within the first five work days of the following January. Any additional payments necessary will be made within the first five work days of the next January.
For those employees electing the January 1 option, the first payment shall be made within the first five work days of January and the second payment shall be within the first five work days of July, contingent on the annual IRS 415 limits. Any additional payments necessary will be made within the first five work days of the next January.
Regardless of the retirement date, the early retirement benefit payment may have to be paid in three or more calendar years in order not to exceed annual IRS 415 limits.
Federal and State taxes, along with FICA, shall not be withheld from the early retirement benefit payments.
G. The adoption of this early retirement program shall not vest any right in any employee, whether or not the employee is currently
eligible for early retirement, and the Board of Directors shall have complete discretion to revise or eliminate this program at any
time. However, the Board shall provide employees with written notice of any revision or elimination of the program at least one
year prior to the effective date of the revision or elimination.
H. Notwithstanding anything herein to the contrary, should any portion of this program be in conflict with state or federal rules,
regulations, or laws, that portion of the program shall be invalid and all other portions shall remain in full force and effect.
Cross Reference:
Policy HR422 - Early Retirement
Adopted: October 2, 2002
Reviewed: Annually
Revised:
July 1, 2004
July 1, 2005
October 10, 2005
February 13, 2006
November 1, 2006
July 1, 2008
November 1, 2008
November 1, 2009
November 1, 2010
August 13, 2014
February 1, 2016
February 21, 2017
March 20, 2018
August 20, 2019
September 1, 2020
June 13, 2022
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