Voluntary Phased Staff Retirement

As of February 1, 2010, eligible full-time staff members can take advantage of a new Voluntary Phased Staff Retirement Program. You can gradually reduce your workload while still being employed with benefits, and the University can reduce payroll costs while still retaining the expertise of qualified staff. Phased retirement also gives departments adequate time to plan for filling or restructuring the staff member’s position.

To participate in the Voluntary Phased Staff Retirement Program, you must meet the Rule of 75. Participation also depends on the business needs of your department.

If you’re approved to participate, you’ll work reduced hours but still receive the same benefits that you receive as a full-time staff member. Keep in mind that benefits based on your salary, such as the Tax-Deferred Retirement Plan and life insurance, will be based on your reduced salary. Also, your time off (including sick leave and holidays) will be pro-rated based on your reduced schedule. And you’ll need to work enough hours to qualify for any benefits that require a certain amount of service, such as Family and Medical Leave.

The details of your arrangement must be approved by your supervisor and your school/center, but some of the basic provisions include:

Your phased retirement period cannot last more than two years. At the end of the agreed-upon period, you will officially retire and be entitled to Penn’s retiree health benefits.

Your work schedule must be no less than 60% of your current full-time schedule.

The arrangement should be reviewed every six months by you and your supervisor/department head to determine if it meets everyone’s needs. If it's no longer meeting the needs of your department, you may choose to retire or return to work on a full-time basis under the same terms and conditions of employment. If the arrangement is no longer meeting your needs, you can choose to retire or discuss alternative arrangements with your department; based on business needs, your department will make the final decision on alternative arrangements, if any.

For more information about the Phased Retirement Program, review the Phased Staff Retirement Policy or Frequently Asked Questions. You can also contact for more information.

Phased Staff Retirement Proposal Template
This sample proposal lays out a plan for Phased Retirement implementation that should be acceptable to all affected parties (supervisor, staff member and colleagues).

Phased Staff Retirement Agreement Template
Once a proposal is approved, a signed agreement is required to help clarify for all involved parties the specifics and expectations of the arrangement.