Operating Policies and Procedures Manual

Effective Date:  07/01/97
Policy Number:  07-05
Section:  Human Resources
Subject:  Early Retirement / Retirees Unused Sick Leave Compensation
 

POLICY

Eligibility

Employees between the ages of fifty-five (55) and sixty (60) shall become eligible for early retirement benefits in the calendar year in which the sum of their age and the number of years of continuous full-time service to the university totals seventy (70).

Employees sixty (60) years of age and older are eligible for early retirement benefits in the calendar year in which they have at least ten (10) years of continuous full-time service to the university.

Benefits

Employees electing early retirement will receive the following benefits:

1. Medical insurance (including spouse and unmarried dependents, if covered at the time the employee retires) will be provided at one-half of the total cost (one-half of what ASU pays and half of the employee premium). To set up payment (payable by bank draft), see the payroll director prior to retirement.

2. Life insurance and accidental death and dismemberment benefits equal to the scheduled amount at the time of the early retiree's retirement will continue at no cost to the retiree; and

3. Continuing eligibility of the early retiree, their spouse and unmarried dependent children for tuition discounts in effect for current university employees.

Termination of Benefits

The benefits provided to early retirees enumerated in items 1) and 2) above will terminate at the earlier of the age at which the early retiree becomes eligible for Medicare coverage or the date the early retiree becomes eligible for similar benefits under any other arrangement for members in a group, whether insured or self-insured.

The benefits provided to the spouse of the early retiree enumerated in items 1) and 2) above shall terminate the earlier of either a) when such benefits terminate for the early retiree or b) the spouse becomes eligible for Medicare.  Should the spouse of an early retiree not have reached the age of Medicare eligibility at the time benefits to the early retiree are terminated, the early retiree may pay the total cost of continuing such coverage until such time as the spouse becomes eligible for Medicare.

Revised by the Board of Trustees December 2000.

Retirees Unused Sick Leave Compensation

After 10 years of continuous service and upon retirement from Arkansas State University, if a retiree has unused sick leave (none of which has been donated from the catastrophic leave bank) at the time of retirement, then financial recognition in the form of health care premium payments towards that unused sick leave shall be provided as follows:

At least 720 hours but no more than 800 hours of unused sick leave shall receive 80% of health care premiums cost paid in the same number of days as the unused sick leave, for example, 720 hours equals 90 days, and ASU will pay 80% of the health care premiums for 90 days upon retirement towards the retiree's health care premiums cost; or

At least 801 but not more than 959 hours of unused sick leave shall receive 90% of health care premiums cost paid in the same number as the unused sick leave days; or

960 hours (the maximum sick leave hour accrual) of unused sick leave hours shall receive 100% of health care premiums cost paid in the same number of unused sick leave days.

Policy effective June 30, 2003 by Board of Trustees.

This page is maintained by Cassey Tune
Last updated on 02/16/2004