Phased Retirement Program
The Phased Retirement Program (PRP) is intended to facilitate retirement decisions by allowing eligible faculty the option to continue participation in academic life and mentoring of students while preparing for the future. PRP was first introduced in 1988 to allow eligible tenured faculty to receive retirement benefits and work part-time for NC State on a three-year academic contract. Tenured faculty who qualify will receive a letter from the Provost extending an opportunity to participate in the Phased Retirement Program.
- Who's Eligible?
- When Is Notification Sent Out?
- Phased Retirement Program Guidelines (pdf)
- How Do I Apply?
- What Is The ORP or TSERS Process?
- What Happens To Employee Benefit Plans?
- Are There Annual Earnings Limitations or Salary Restrictions?
- How Does Social Security Coordinate with Phased Retirement?
- Ways to Stay Connected to the University
- Guiding Policies and Required Paperwork
- Frequently Asked Questiond (pdf)
Full-time tenured faculty members with at least five (5) years of NC State University service who participate in the Teachers’ and State Employees’ Retirement System (TSERS) or Optional Retirement Program (ORP) are eligible to apply for PRP participation if they:
- are at least age 62 [for TSERS participants] or at least age 59 ½ [for ORP participants] upon entering the Phased Retirement Program; and
- are eligible to receive a benefit under the TSERS or ORP plans.
(A break in service is not required prior to entering PRP because the ages listed above meet “normal retirement age” requirements for the purposes of this program.)
Additional eligibility details can be found within Regulation 05.57.01, Phased Retirement Program for Tenured Faculty.
When Is Notification Sent Out?
Notification for participation in the Phased Retirement Program is sent via email during the month of August for the start of the next academic year. For example, notification for the 2013-2016 PRP will be communicated in August 2012.
How Do I Apply ?
The faculty member formally applies to the PRP by submitting an unsigned UNC Phased Retirement Program Application and Re-Employment Agreement (the "Agreement") directly to the department head. Details about the application process are explained in the Phased Retirement Program Department Guidelines.
What Is the ORP or TSERS Retirement Process?
Eligible faculty members may elect to begin receiving the benefits accrued under the Teachers' and State Employees' Retirement System (TSERS) or the Optional Retirement Program (ORP), but they are not required to do so. State Health Plan benefits [if eligible] are not provided unless in receipt of a monthly retirement benefit.
Faculty participating in the Teachers' and State Employees' Retirement System (TSERS) may begin the retirement process no sooner than 120 days prior to the effective date of retirement while participants of the ORP should begin at least 60 days prior to the retirement effective date. Even though retirement processing time frames are in place, planning generally begins at least a year in advance of the retirement date.
Faculty members who retire from TSERS or receive a monthly annuity benefit from the ORP carrier are eligible for retiree health benefits. Dependent coverage premiums are deducted from monthly TSERS payments. ORP participants will be direct-billed by the State Health Plan and may set up payment by bank draft. During the 3-year PRP period, most other benefit deductions continue through payroll deducted.
Are There Annual Earnings Limitations Or Salary Restrictions?
There are currently no earnings limitations for ORP retirees; however, TSERS plan rules impose specific earnings limitations for retirees who return to service, including PRP participants. The allowable earnings limit is adjusted annually on January 1 by the percentage increase in the Consumer Price Index, a national measure of increase in the cost of living from one year to the next.
Refer to the PRP Frequently Asked Questions for more information about how summer session earnings are affected by the earnings limitation.
How Does Social Security Coordinate with Phased Retirement?
Full retirement age (FRA) as defined by Social Security Administration (SSA) for eligibility for SSA benefits is determined by a retiree's date of birth. See the web links below for more information:
- Social Security Administration and Earnings Limitations
- Determining Full Retirement Age
- Planning and Applying for Social Security Benefits
For additional information contact Margot Henion (919-515-4319) in the HR Benefits Office.
Frequently Asked Questions