2.3.9 Retirement

Policy: 2.3.9

Retirement

Date of Policy Adoption: January 25, 2000

Revised Effective Date: January 25, 2000

Scope: All Employee Groups

Policy

The College provides eligible employees with retirement benefits and access to College -sponsored retirement plans, to assist individuals upon retirement.

Procedure

College-sponsored retirement plans

Employees may choose to enroll in one of two retirement plans, upon employment or qualification. The Arizona State Retirement System (ASRS) is a “defined benefit” plan administered through the state of Arizona. The Optional Retirement Plan is a “defined contribution plan” through various investment providers (Aetna, TIAA-CREF and VALIC). Specific plan benefits can be obtained through contacting the organizations and reviewing the plan documents, which are controlling.

Employees contribute to the retirement plans in accordance with the defined rate for each plan. Contributions to either ASRS or the Optional Retirement Plan are matched by employer contributions from the College.

Full-time employees are eligible for participation in ASRS or the Optional Retirement Plan, as are part-time, non-teaching employees who are expected to work in excess of nineteen and three-quarter hours per week for fifty two weeks during the year.

College-provided retirement benefits

Employees who retire after 15 years of continuous service, and who are approved for retirement, will be paid for accumulated unused sick leave, up to 70 days, at the rate of $60 per day, not to exceed $4,200.

The College will pay employees retiring after 15 years of continuous service up to a maximum of $1,000 per year for premiums toward the retired employee's group insurance.

In order to qualify for the College -provided retirement benefits, employees must notify the College President in writing at least nine (9) months in advance of their effective retirement date.

The effective date of retirement for full-time continuing contract faculty must occur at the end of the contract term or at a time approved by the Governing Board or their designee.

In the event of an “early retirement” Policy or legislative action, or other extenuating circumstances, the College may waive the notification requirements.

Employment of Individuals Receiving ASRS Pensions

As a public employer, Yavapai College has a responsibility to hire people considered to be members of the active workforce. Because an employee who collects a monthly annuity from the Arizona State Retirement System (further referred to as “retiree” in this Procedure) already receives income from the State, s/he is not considered to be a component of the active workforce eligible for employment at Yavapai College. However, in circumstances where the unique talents and skills of a retiree are required, the College has adopted the following guidelines for employment of individuals receiving ASRS pensions.

These appointments are wholly at the discretion of the College and its agents and are to be considered the exception, rather than the rule in employment practice.

• There must not be a continuing commitment to be employed.
• The retiree must not be employed by a state agency for a period of at least 21 calendar days after retirement. In the event the retiree does not meet one of the following conditions:
• The break in service must be at least 60 calendar days
• 80 “points” recognized by ASRS toward retirement credit.
• 62 years old and 10 years of service.
• 65 years old.
• The retiree cannot work full-time in excess of 19 weeks per fiscal year (July – June) and cannot work 20 hours or more per week for more than 19 weeks per fiscal year.
• A retiree can be rehired in the year of retirement if his/her current salary has been directly budgeted for in the current budget.
• For the purposes of salary calculation, the retiree (after the fiscal year in which s/he retires) will be considered a new employee whose salary will be set by existing guidelines and practices for new employees.
• Retiring faculty will return to the workforce as adjunct faculty and will be paid the standard rate of pay for adjunct faculty.
• Retiring staff will return to the workforce as part-time employees and will be paid the standard rate of pay for part-time employees. In the event that retired staff engages in full-time work, they will be paid consistent with starting salaries for the responsibilities they will be performing.

A retiree can elect to suspend ASRS annuity payments in order to be considered a part of the active workforce and, therefore, not subject to the other provisions designated for employees receiving ASRS pensions.

Date of Policy Adoption: January 25, 2000

Effective Date: January 25, 2000

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Dr. Ed Harris, Board Chair