Voluntary Early Retirement Incentive Program

QUALIFICATIONS & DETAILS

Andrews University is introducing a voluntary early retirement incentive that will be open to all full-time Andrews University faculty who are 62 years of age or older (as of April 30, 2020) and who are interested in voluntarily participating in an early retirement buyout prior to their planned retirement date. For faculty, “full-time” employment means a current minimum 75–100 percent appointment. Faculty members who are within six (6) months of their currently-planned retirement date are disqualified from participation in this new program.

This offer for voluntary early retirement expires on June 19, 2020 (“Offer Deadline”). If you are interested in participating in this voluntary program, you must notify Human Resources in writing on or before the Offer Deadline of June 19. For those who are approved to participate, employment must end no later than July 1, 2020.

Faculty who participate may be allowed to provide contract work up to six (6) credits per semester at the adjunct rate if the University determines there is a need in their given area of expertise. An additional three months of appointment at an appropriate percentage may also be approved by the Provost in the event that there is a particular need in that faculty member’s given area of expertise. No one who chooses to participate in this voluntary early retirement will be eligible for full-time re-employment at the University.

In exchange for signing an early retirement and release agreement to take effect no later than July 1, 2020, eligible employees may choose one of two payout options.

Under Option 1, the University will provide the employee with a one-time, lump-sum payout that will not exceed 50 percent of their current annual salary (minus applicable taxes). This lump-sum payment would be included in the employee’s final paycheck following the official retirement date. The amount of this one-time, lump-sum payout will vary based on years of service to Andrews University and will be offered as follows:

Andrews University Years of Service	Payout Amount
1–5 years	20% of annual salary
6–10 years	25% of annual salary
11–15 years	35% of annual salary
16–20 years	40% of annual salary
20+ years	50% of annual salary

Option 2 is available only to those full-time faculty employees aged 62 or older who also have a minimum of 20 years of service to Andrews University.

Under Option 2, the University will provide a healthcare stipend until the participant reaches age 70. The stipend is intended (but not guaranteed) to be sufficient to provide comparable health insurance coverage as was provided to the employee under the University’s health plan. The healthcare stipend will be paid annually (subject to any appropriate taxes) to the participant in a lump sum. The amount of the stipend, which varies depending on the participant’s eligibility for a stipend under the Affordable Care Act or Medicare eligibility, will be offered as follows:

Age of Participant	Annual Healthcare Stipend Amount
For the 12-month period commencing seven months following retirement (for all participants regardless of age)	$13,200
Thereafter, for participants aged 63	$4,200
Thereafter, for participants aged 64	$4,200
Thereafter, for participants aged 65	$1,680
Thereafter, for participants aged 66	$1,680
Thereafter, for participants aged 67	$1,680
Thereafter, for participants aged 68	$1,680
Thereafter, for participants aged 69	$1,680

Regardless of whether Option 1 or Option 2 is chosen, all participants in the program will be provided an additional six (6) months of health, vision and dental insurance coverage (beyond their official retirement date) under the University’s health plan at the faculty member’s current plan level. This extended healthcare coverage will be provided at no cost to the participant.