Discussion

A phased retirement is when an employee reduces their workload and compensation during their final years of GVSU employment. An example would be a full-time employee shifts to half-time at half of the previous compensation for a year before retiring. The employee does not enter retired status until the end of the phased retirement.

Limitations

Phased retirements are at the sole discretion of the executive offer. There is no entitlement or expectation for the individual.

Phased retirements are not available for bargaining unit employees.

Phased retirements are limited to 2 years.

EO’s must sign off on a comprehensive plan detailing how the work will be distributed (current state vs. future state), and how the cost will be absorbed. This plan will be provided to HR and budget office.

There can be no full-time FTE growth attributable to the phased retirement.

No additional funding will be provided to support the phased retirement, all adjustments must come from base resources through prioritization and reallocation. Salary savings from the reduced workload of the employee on the phased retirement may be reallocated to hire temporary, adjunct or other non-benefit employees if needed. Visiting professors (with benefits) may be hired for the term of the phased retirement provided total compensation (including benefits) is covered by the salary savings of the person on phased retirement.

Divisional reserves cannot be used to support phased retirement workload distribution plans. Exceptions may be considered for critical AP staff where a new hire is required to work full-time during a limited transition period while the retiring staff member overlaps to pass off organizational knowledge and key duties. The maximum phased retirement time period for critical AP positions and use of reserves in this instance shall not exceed six months.

Phased retirements and sabbaticals cannot happen simultaneously.

Phased retirements cannot start until after one year after a sabbatical has ended.