VOLUNTARY EARLY RETIREMENT BENEFIT

Eligible employees may apply for the Voluntary Early Retirement Benefit.

The President shall establish procedures regarding employees volunteering for the Early Retirement Benefit.

Adopted December 18, 1997
Reformatted February, 2012
Revised July 15, 2015
Revised April 11, 2017

Procedure 4230E

VOLUNTARY EARLY RETIREMENT BENEFIT

Employees may apply for the Voluntary Early Retirement Benefit, hereinafter referred to as The Benefit, upon becoming eligible as described in these procedures.

The principal purpose of the Voluntary Early Retirement Benefit is to allow eligible employees to seek separation from College employment. The College’s primary interest is the potential financial savings, although other interests may be a consideration. A potential financial savings results when an entry-level employee is hired to replace an employee at the high end of his or her pay range. The employee may gain financial benefit from early retirement so they can pursue other interests.

Participation in The Benefit is voluntary and is a privilege but not a right. The benefits provided by The Benefit are in consideration of both the employee’s waiver of claims and of his or her continued employment with the College.

Definitions:
“Employee” refers to the employee eligible for early retirement.
“Applicant” is used after the employee has submitted an application for Voluntary Early Retirement.
“Participant” is used once the employee has been granted Voluntary Early Retirement.

Eligibility for the Voluntary Early Retirement Benefit
Upon notification that The Benefit will be implemented in any given year, an employee may apply for participation if: by June 30 of the fiscal year in which an application is made, the employee meets the 5 criteria listed below;
1. The applicant will have accumulated a minimum of 70 points, the sum of the employee’s age and number of years of full time service to the College; and
2. The applicant will have a minimum of ten (10) consecutive years of full-time service to the College. (Past approved paid leaves count as service credit); and
3. The applicant will have attained the minimum age of 57, but will be less than his/her full retirement age as defined by the U.S. Social Security Administration; and
4. The applicant is a full-time employee at the time of application; and
5. The applicant’s employment is not contingent to grant funding.

Annual Determination of Benefit Feasibility
Each year by the September Board of Trustees meeting, the Administrative Services office will determine whether or not the Early Retirement Benefit can be offered as defined herein for the upcoming application year and will make a recommendation to the Board for their approval at the September meeting. Administrative Services will notify all eligible candidates the week following the Board of Trustees meeting of the Board’s decision if the benefit will be offered.

Criteria for Calculating Benefit Feasibility:
The following calculations and assumptions will be used to calculate benefit feasibility:
1) It is assumed that ALL employees described in #2 below will apply for the Early Retirement benefits.
2) It is assumed that every eligible employee will take early retirement at age 60, unless a greater age is needed to meet the ten (10) year minimum service requirement or the age plus years of service requirement.
3) When determining the projected costs for the next five application years, actual savings or losses incurred by the College as a result of prior early retirements will be factored into the calculation.
4) It is assumed that an early retiree will be replaced with a full-time employee. The President will determine the salary of the replacement employee upon consultation with the appropriate Vice President, Division Chair and the Human Resources office.
5) It is assumed that the current salaries will not change for the entire five year period of cost projection.
6) To determine whether or not there will be a projected cost increase or savings, the total cost of salaries and benefits for eligible employees (age 60 and older) will be compared with the total cost of the early retirement incentives and associated benefits. The cost of the salaries and benefits of the replacement employees will be added to the calculation.
7) Should the College exercise its option to pay off an individual’s early retirement incentive prior to the scheduled pay-off date, the original pay-off schedule will be used in future calculations so that the projected savings or losses for the five year period will not be affected.

Application for the Voluntary Early Retirement Benefit
Upon notification of benefit implementation, employees desiring to make application for the financial benefits provided by The Benefit, must submit a completed application to the Human Resources office no later than November 1st of a given year to be considered. The forms for an application to The Benefit are provided by the Human Resources office.

At its sole discretion, the Board of Trustees shall determine which applications, if any, shall be approved. The Board will make a decision on each completed application not later than the regular Board meeting scheduled in December of a given year. The applicant will be notified of this decision as soon as possible. After the Board’s approval, the applicant will be given up to forty-five (45) calendar days to sign the Early Retirement Agreement and Release form. After the employee has signed the Early Retirement Agreement and Release form and submitted it to the Human Resources office, the employee has seven (7) calendar days to revoke his/her Early Retirement Agreement and Release.

Early Retirement Benefit Incentive Payments
For those applications approved by the Board, the College will pay the participant an annual incentive amount as follows: 20 percent of his/her gross yearly earnings based on his/her last full year of employment not to exceed the participant’s estimated single Social Security benefit at full retirement age. Gross yearly earnings do not include any special pay such as for overtime or overload, summer school pay, division chair pay, pay for conducting workshops or training, or pay for adult education classes. Furthermore, the calculation of gross yearly earnings is not affected by any temporary reduction in pay, such as disability, workers compensation, or leave with pay (i.e., Academic Leave). For purposes of the calculation of gross yearly earnings, the maximum-allowable figure is an amount equal to 215% of the salary schedule base for full-time faculty at the time the application for early retirement is submitted.

This annual incentive pay will begin on the date agreeable to both the participant and the College. The participant will receive annual incentive pay in equal monthly installments for five (5) years or until full retirement age, whichever comes first.

The College will deduct from each gross incentive payment, FICA taxes and other deductions required by law. Early retirement incentive payments will cease the first day of the month following 60 months or the first day of the month following the attainment of full retirement age, whichever comes first. Should the participant die before receiving the total amount of incentive payments due him/her, the College will continue the payments to the participant’s designated beneficiary for the remainder of the term of the signed agreement.

Within ninety (90) calendar days’ written notice, the College reserves the right to pay any remaining early retirement benefit incentive payments due the participant. However, should this option be exercised, the medical and life insurance benefits will continue through the term of the agreement as originally planned.

Early Retirement Benefit Insurance Benefits
Except as provided herein below, the Early Retirement Benefit participant will receive an annual contribution for medical and life insurance benefits (single coverage) for a period of five (5) years or until the participant is eligible for Medicare, whichever comes first. The coverage is subject to the rules of the State of Wyoming Group Insurance Office governing early retirees. If the participant dies during the term of the agreement, all medical and life insurance benefits will cease. During the annual determination of benefit feasibility, the College will set the annual contribution for medical and life insurance, which will remain fixed for the duration that the participant receives the benefit. Participants may not elect to take cash in lieu of this benefit and must participate in the same insurance plan as offered to College employees.

Should the annual determination of benefit feasibility in a given year reveal that there would be a cost increase, the College’s contribution to single medical and life insurance premium cost will be reduced as necessary to negate the cost increase, thus allowing the benefit to be offered in the ensuing fiscal year. The College’s contribution in this event, expressed as a set annual amount of the insurance premium cost, will remain the same amount and will not be increased or reduced throughout the early retirement agreement executed between the College and the early retiree.

TIAA-CREF/Wyoming Retirement System contributions will cease as will payments of the Institutional benefits upon the agreed last date of employment.

Date of Retirement
Employees electing to participate in the Voluntary Early Retirement Benefit may retire after the Board has approved their application and they have completed terms of their contract or given at least a 30 day notice of retirement, but must end employment on or before June 30th, the end of the fiscal year. The date of retirement may be extended at the discretion of the President for the benefit of the College.

Continuing Part-time Employment
The College may re-employ participants who are in The Benefit on a part-time basis with the President’s approval. This will not affect the financial benefits to the participant.

Administration of the Benefit
The Vice President of Administrative Services annually determines the fiscal viability of the benefit based on the contents of this procedure. He or she will advise the President of the benefit’s legal and fiscal condition. The Director of Human Resources will administer the Early Retirement Benefit program.

The Board of Trustees can modify or discontinue the benefit at any time; however, any action by the Board will not affect participants who have already retired and are active participants in The Benefit, except as provided below.

This benefit does not obligate the College’s budgets nor can it be enforced any more than other College employment contracts. Furthermore, its execution is subject to the availability of adequate monies budgeted for paying for personal services.

Adopted December 18, 1997
Revised August 9, 2001
Revised December 12, 2002
Revised May 8, 2003
Reformatted February, 2012
Revised July 15, 2015
Revised April 11, 2017