The
University of Michigan offers three phased retirement plans
for faculty and staff who wish to retire gradually. They
are: retirement furlough, phased retirement and phased retirement
furlough. Review the types of phased retirement plans to
determine which phased retirement plan most closely fits
your needs. One of these options could meet a variety of
personal and/or departmental goals.
- Phased retirement allows you to reduce your work schedule
to assist in making the transition to full retirement.
- While you are on phased retirement, you are still part
of the active faculty and staff. Phased retirement is
not an "early" retirement.
- You must first be eligible to retire and submit a request
to your department for approval one year in advance.
- The phased retirement schedule must have a beginning
date and an end date, at which point you fully retire
from the University. Any modifications or extensions of
the phased schedule is subject to the approval of your
department.
Phased
retirement has two unique features:
- You
may reduce your appointment fraction - even below 50%
- and still maintain eligibility for benefits as well
as full University contribution toward the cost of benefits;
and
- You
may start to receive income from the Retirement Plan if
you wish.
Before
implementing a phased retirement plan, be sure to schedule
an appointment with a Benefits counselor to discuss the
effects of your phased retirement plan on your benefits
and the start of your annuities. For more detailed definitions
of these plans, refer to Standard Practice Guide 201.81
for furlough and 201.83 for regular and phased retirements.
Types
of Phased Retirement Plans
The Effect of Phased Retirement on
Your Benefits |
