1. MnSCU Retirement Plans
Basic Training for Campus HR Administrators

2. Planned Modules: Module 1: Retirement Plan Concepts
Module 2: Eligibility for Primary Plans
Module 3: Reporting in SCUPPS
Module 4: SRP: Eligibility and Coding
Module 5: Forms Completion & Processing
Module 6: Phased Retirement Programs
Module 7: Voluntary Retirement Programs
Module 8: Retirement Plan Distributions

3. Programs Available in MnSCU
Statutory/contractual phased retirement
Annuitant Employment Program (AEP)
Link to Phased Retirement/AEP Matrix:

4. Phased Retirement Programs
Phased retirement programs are reduced workload assignments that assist an individual to gradually transition into full retirement:
While earning full retirement credit
Receive full employer insurance contribution
Earn pro-rated leave
Continue to earn seniority
Eligible for tuition waiver benefit
Link to Phased Retirement Program Tips & Tools:

5. Statutory phased retirement
Minnesota Statutes § § 354A.094, 354B.31 and are legislative basis for phased retirement (“qualified part-time teachers”)
Participation is normally based on a full fiscal year
TRA General allows MnSCU faculty to retire after the first semester in a year, but must work pro-rata in that semester
Eligibility:
Unclassified (non-”rule 10”) faculty and staff who are covered by TRA and IRAP, and 1st class cities TRA
3 or more years of allowable service credit in the fund
During participation, may not be covered by any other retirement fund

6. Statutory phased retirement
Part-time definition under statute:
“….is employed for at least 50 full days or a fractional equivalent….for which the faculty member is compensated in an amount not exceeding 80 percent of the compensation…for a full-time faculty member….”
Employer and Employee pay into the appropriate retirement fund so that employee receives full service credit

7. Statutory phased retirement
Must be on the program for at least one year but no more than 10 years
May return to full-time employment at the end of participation
Statutory provisions are available to all eligible unclassified employees where their union contracts or salary plans do not contain additional restrictions
Link to Statutory provisions page:

8. Contractual Phased Retirement
Additional restrictions and provisions are included in following contracts:
IFO
MSCF

9. Contractual Phased Retirement
Eligibility
IFO: FTE years of service in State Universities
MSCF: FTE years of service in State Colleges
IFO & MSCF must retire at the end of program participation

10. Contractual Phased Retirement
Under IFO Contract, approval is discretionary
Under MSCF Contract, approval “shall be granted…subject to [contractual] provisions”
Subject to 7% of UFT limit
Subject to 50% department limit

11. Statutory/contractual phased retirement
Insurance Benefits:
Eligible for insurance as if employed full-time
Separation Incentive:
If otherwise eligible, benefit is paid based on age and other contract provisions at time of termination
Deadlines to apply for participation in statute and in contracts
Summer session work counts towards the following year (Change in FY10 & after)

12. IFO phased retirement Special features:
If eligible for ESI, cannot receive designation for 100% of base salary if over age 55
Can withdraw up to 25% of SRP yearly during phased program
Faculty are expected to perform full range of duties on a pro-rata basis
Annual workload must be between .33 and .67 FTE
Earn pro-rated seniority
Gary presents thru here – Mary start the next screen

13. MSCF Phased Retirement
Special features:
Must be a full-time unlimited faculty
Length of participation and period of workload should be mutually agreed upon. If unable to agree, the faculty member’s request is granted unless college can show it would “pose a unique and undue burden on the institution”.
Link to Phased Retirement Guideline:

14. MSCF Phased Retirement
Special features:
A copy of the phased retirement agreement is forwarded to OOC and MSCF
Annual workload must be between .40 and .80 FTE. Special provisions for base year overload.
Earn seniority as if full-time
Faculty are expected to perform full range of duties on a pro-rata basis

15. Phased Retirement – Purchase of Retirement Service Credit/Contributions
All faculty/staff other than MSCF:
Buy up to 1.0 FTE from reduced workload
All work counts towards FTE limits
MSCF Faculty:
Base year determines overload $ limit
All work counts as regular workload or goes to $ limit
ER pays only to 1.0 FTE

16. Find these forms at: www.tra.state.mn.us
Phased Retirement – Purchase of Retirement Service Credit/Contributions
TRA Part-Time Teacher Forms:
Conditions & Form
Worksheet
Find these forms at:

17. Phased Retirement – Purchase of Retirement Service Credit/Contributions
IRAP Form On MnSCU Retirement Site: Phased & Sabbatical Contributions

18. Annuitant Employment Program (AEP)—Statutory Provisions
Link to AEP Tips & Tools:
MnSCU-specific legislation (M.S. § § 136F.48, , and 354A.31)
Covers unclassified (non-”rule 10”) faculty and staff who are in TRA, MSRS General or Unclassified Plans, IRAP, or first class cities TRA.
Allows colleges/universities/OOC to continue to employ faculty and unclassified staff who begin drawing a retirement annuity or benefit.

19. Annuitant Employment Program (AEP)—Statutory Provisions
Eligibility:
Link to AEP Guidelines:
Retires and has at least 10 YOS (can be a combination of college/university/OOC)
Employed on a full-time basis immediately preceding retirement in a qualified position
Begins drawing a retirement benefit/annuity; no additional retirement deductions are taken
Returns to work between .33 and .67 time basis
Summer session belongs to the following year

20. Annuitant Employment Program (AEP)—Statutory Provisions
Eligibility:
No break in service, retained at same college / university / OOC
Insurance provided at full-time rate
Other benefits are provided pro-rata
All separation incentives and severance payments are made at the end of participation in the AEP Program, increase in age reduction applies.

21. AEP - IFO and MSCF Differences
IFO faculty on the AEP retain tenure status
MSCF faculty on the AEP must have the appointment status of temporary part time (TPT)

22. Phased Retirement vs. AEP
Phased Retirement Program
Annuitant Employment Program
Basic Premise: Employee works part time before actually retiring so that the employee can ease into or “phase into” retirement. Employee initiates request. Request may change to a lesser percent time worked each year to help the employee transition to full retirement.
Basic Premise: Employee works part time following retirement so that there can be a transition period of responsibilities, training time for a replacement, search, etc. Designed to be an employer initiated request – helps management retain a highly skilled worker to retain needed skills
Sometimes employees call either one of these programs phased retirement or annuitant employment. Make sure that employees know which program they are actually on

23. Phased Retirement vs. AEP
Phased Retirement Program
Annuitant Employment Program
Retirement: Employee and employer both pay into the retirement fund as if the employee is still working full time so that the employee gets additional service credit time or additional contributions in order to have a larger pension or fund at the time of retirement.
Retirement: Employee is already retired so there are no employee or employer contributions to retirement. Employee may draw a retirement annuity or begin a distribution of retirement funds.
Insurance: Employee receives full employer contribution.
Think of phased retirement as more a way to reach rule of 90, or to up the high-5 average salary. Employees keep earning retirement credit.
Employees on phased have less of an income from employment that those on the AEP.
Sometimes employees use the phased retirement program where there are medical issues or other situations that limit their ability to work full time.
The AEP program occurs after retirement annuity accrues – the retirement benefits are now frozen.
Employees actually have more income from employment – their part time salary as well as their pension fund payments. Employees could also potentially receive their social security benefits while on this program.
Sometimes the employees ask for this program as they want to keep involved in the campus life.
There is no requirement that any requests from employees to participate in the AEP need to be approved. This program is discretionary.

24. Module 6: Phased/AEP Retirement
Questions?