Life Events - Retiring from the University of Michigan: Phased Retirement -
Types of Phased Retirement Plans

  Phased Retirement Retirement Furlough Phased Retirement Furlough
Plan Description Offers faculty and staff members a reduced appointment fraction, or a schedule of time off with time worked - or a combination of both. You can continue to work and have an income, but you must work less. Allows faculty to apply for a terminal furlough year, taken as the last year preceding retirement, or in partial installments over two or three years prior to the effective date of retirement during which time the staff member is relieved of normal responsibilities and may be called upon to act in a consulting capacity to the university or to conduct research in his or her field of interest. Offers faculty the flexibility of a combination of retirement furlough and phased retirement plans.
Eligibility

You are eligible if:

  • You are eligible to retire.
  • Your department approves the phased retirement request in writing.

You are eligible if:

  • You are a regular instructional staff member hired into a faculty position prior to January 1, 1984. You are age 62 and have worked 10 years in the processional ranks. You have not taken a sabbatical leave within the four years prior to the effective date of the furlough.
  • You will retire from an eligible rank.

You are eligible if:

  • You are eligible for retirement furlough.
Restrictions
  • You reduce your appointment to less than 100% - or less than your normal appointment percentage (can be as little as a 1% reduction). The phased retirement appointment must have a beginning and an end date. After your plan is approved and implemented, modifications can be made only with the department head's approval.
  • The date on which your full retirement will take place must be specified at the beginning of phased retirement.
  • Furlough can be spread over no less than one year or no more than three years.
  • Available to faculty members only.
  • Available to faculty members only.
  • The date on which your full retirement will take place must be specified at the beginning of phased retirement.
Application Application must be in writing and must be approved by your department head.
  • Application must be in writing and must be approved by your department head.
  • Retirement furlough plans are approved and administered by the Vice President for Academic Affairs one year prior to start of the furlough.
  • Application must be in writing and must be approved by your department head.
  • Retirement furlough plans are approved and administered by the Vice President for Academic Affairs one year prior to start of the furlough.
Salary Salary continues, but it is reduced to correspond with the reduction in your appointment. Salary continues. Salary continues, but it is reduced to correspond with the reduction in appointment combined with furlough salary.
Social Security

Refer to the Social Security website for eligibility rules.

http://www.ssa.gov/

Refer to the Social Security website for eligibility rules.

http://www.ssa.gov/

Refer to the Social Security website for eligibility rules.

http://www.ssa.gov/
Retirement
  • Retirement contributions are based on the actual salary received. TIAA-CREF partial or full annuities may begin during phased retirement.
  • Annuities are not available from Fidelity Investments.
Retirement contributions are based on the actual salary received.
  • Retirement contributions are based on the actual salary received. TIAA-CREF partial or full annuities may begin during phased retirement.Income may not begin during a straight one-year furlough.
  • Annuities are not available from Fidelity Investments.

 

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