PURPOSE

To provide incentives for employees to retire, in order to generate savings in personnel costs.

APPLICATION

All participants in the TIAA/Cref Retirement Plan, who meet the stated requirements, shall be eligible to participate in the Retirement Incentive Program.  Participation in this program is entirely voluntary.

ELIGIBILITY

To qualify for benefits under this program, employees must meet the following criteria:

    Early Retirement Incentive Benefits:

• Must be age fifty-five (55) or greater, but less than sixty-five (65) years of age, at the effective date of retirement, and
•  Age plus years of service to the University of the Virgin Islands must equal seventy-five (75).

• Up to two (2) years of study leave may be counted toward service credit.

      Retirement Age Incentive Benefits

 When the Retirement Incentive becomes effective, employees who meet the following criteria will be eligible for the Retirement Age Incentive Benefits:

• Must be age sixty-five or over, and
• Age plus years of service to the University of the Virgin Islands must equal seventy-five (75), and
• Up to two (2) years of study leave may be counted toward service credit.
• Effective date of retirement must be prior to September 30, 2005

• Must be age sixty-five (65), but less than age sixty-six (66), at the effective date of retirement, and
• Age plus years of service to the University of the Virgin Islands must equal seventy-five (75)
• Up to two (2) years of study leave may be counted toward service credit.

• Individual Group Health and Dental Insurance Premiums will be paid by the UVI for the first three (3) years of retirement.  The benefits available under these insurance plans are subject to any changes in coverage, and to eligibility determinations by the insurer.   Cost of dependent coverage will be borne by the retiree.
• After the first three (3) years, the University will contribute fifty percent (50%) toward the continuation of the individual coverage under its Group Health and Dental Plan.

• Premiums for Group Term Life Insurance in the amount of  $5,000 will be paid by the UVI.  (Retirees are not eligibile for Accidental Death and Dismemberment Insurance under our present group life insurance contract).
• Retirees may retain up to $15,000 in Supplemental Insurance at their own expense, if they are enrolled for at least that amount at the time of retirement.

• The University will make payments to the employee's TIAA/CREF account equal to the sum of the employer and employee contributions until the employee reaches the age of sixty-two (62).
• The University will contribute the employer's share to the employee's TIAA/CREF account from age 62 to sixty-five (65), if the employee contributes his/her portion.
• Contribution amounts will be based on base salaries in effect at the time of retirement, and the contribution rates in effect based on legislative action.

• At the discretion of the University, retirees under this program will be given consideration for part-time employment for available positions.
• Employees considering early retirement under this program may negotiate post retirement employment with the University prior to making a final decision.
• Compensation for employment after retirement:
• Retirees retained in their same or comparable positions will be compensated on a prorated basis, at 80% of their base pay at the time of their retirement.  Where applicable, faculty summer salaries will be calculated based on 80% of  base pay at the time of retirement.
• Retirees appointed in positions that are different from their pre-retirement position, wil be compensated on a prorated basis at 80% of the salary for that position.
• No leave, sabbatical, tenure, or other benefits associated with full-time active employment shall be in effect, other than those specified under the terms of this program.

• Premiums for Group Term Life Insurance in the amount of $5,000 will be paid by the UVI.  (Retirees are not eligible for Accidental Death and Dismemberment Insurance under our present Cigna contract.)
• Retirees may retain up to $15,000 in Supplemental insurance at their own expense, if they are enrolled for at least that amount at the time of retirement.

•  The University will make a one time lump sum payment to the retiree equivalent to the employer's retirement annuity contribution for one year.  This payment will be calculated on the base salary and contribution rates in effect at the time of retirement.

• At the discretion of the University, retirees under this program will be given consideration for part-time employment for available positons
• Employees considering early retirement under this program, may negotiate post retirement employment with the University prior to making a final decision.

• Eligible non Faculty Employees may elect to take advantage of this program at any time by giving three (3) month written notice of their intentions.

• To qualify for this program, Faculty members must give written notice by February 1st  if they intend to retire prior to the beginning of the next academic year, or September 1st  if they intend to retire prior to the start of the Spring Semester.