CU Denver’s 2023-24 Campuswide Voluntary Retirement Incentive Program

CU Denver is offering a one-time-only, campuswide voluntary retirement incentive program to employees who qualify for university retirement according to age and length of service. This program will allow community members to make career or life changes that are right for them while giving the university greater financial flexibility. The program is open to faculty and staff at all levels, including university staff, classified staff, IRC, tenured, and tenure track faculty.

The program is open to faculty and staff at all levels, including classified employees, university staff, IRC faculty, and tenured and tenure-track faculty, who meet the eligibility criteria (see more information for job classifications below). Employee services has many resources on their website for employees considering retirement, including a Retirement Ready webpage.

You are not eligible if you:

• have already given notice for a resignation or retirement
• have already resigned, provided your notice of resignation, or are on a phased retirement
• have an existing retirement or transition agreement in place
• your staff position is term limited (check with your supervisor if you are unsure)
• are a temporary or student employee
• are less than .5 FTE

Check with your unit’s human resources manager to confirm whether you are eligible to retire. Please note that getting appointments to meet with PERA or advisers can take time, so you can always apply for the program to get your name in the pipeline but then later withdraw. The application is simply an application, not a binding agreement.

If the sum of your age and years of service in a position greater than .5 FTE at the University of Colorado is greater than 70 for early retirement and 75 for regular retirement at the date of your retirement (I.e., June 30, 2024), you are likely eligible to apply for this program, unless you are in PERA, see the PERA section below for a different calculation.

Review the Retirement Ready, Benefits Availability Guide flyer.

You must be at least 55 years old by the date you retire unless you are in PERA, see the PERA section below. For example, if your approved retirement date is June 1, 2024, and you turn 55 on May 29, 2024, you are eligible. We cannot legally offer retirement for individuals who are not 55 at the date of their retirement.

No. We will be reviewing the applications based on the total number of age plus years of service. There are many options for someone who needs to take leave because of their health, including the newly implemented FAMLI leave starting Jan. 1. For more information, please contact Human Resources.  

Whether an individual has applied will not typically be shared with a vice chancellor, dean, or supervisor until a decision has been made, unless there are multiple applications within a unit/school/college that create concerns regarding business continuity. We assure our community members that they will be treated fairly and with dignity throughout the process, and supervisors and leaders will be given clear guidance about how to lead effectively and appropriately during and after this time.

The application window opens Wednesday, Nov. 1, 2023, at https://ucdenverdata.formstack.com/forms/cu_denver_voluntary_retirement_program_application_form. Priority consideration will be given to those who apply by Thursday, Nov. 30. The application period officially closes on Friday, Jan. 19, 2024. The timing of retirement is generally June 30, 2024. Anyone interested who is eligible is encouraged to apply as early as possible, as priority will be given to those who apply by Nov. 30.

Employees accepted into the retirement program must retire by June 30, 2024. 

Individuals with the highest combination of age plus years of service at the two points of priority, Nov. 30 and Jan. 19, will be offered the incentive first. To ensure opportunity across the university, limits on the number of retirements from each school, college, and unit may be implemented depending on requests. Because positions may not be automatically refilled, supervisors and vice chancellors will need to evaluate and make decisions about staffing needs and workload management moving forward. We are aware of concerns regarding assigning more work to other employees without clear plans for job description review or additional compensation. Guidance and resources will be provided by Human Resources to support in the process of evaluating workload and impact on ongoing services.

No. Your Dean cannot veto your acceptance of a retirement agreement.   

At the central level, we have initially set aside a minimum of $1.5 million dollars for this program, and we will be asking affected schools, colleges, and units to contribute up to 100% of the cost of each approved retiree.

Once retirement incentives have been accepted and communicated, Human Resources will provide guidance and resources for impacted leaders to make decisions. For example, some teaching positions may not automatically be rehired, which means decisions will be made about whether that position is needed in the same discipline. Some positions may shift. Some may be eliminated. Some may be critical and need to be immediately filled. In certain situations, to ensure continuity, a retiree may be rehired in a retiree position up to .49 FTE to continue services. We need to carefully consider each position on a case-by-case basis. Deans and vice chancellors will be primarily responsible for making decisions about their units.

Application selections will be made by the Chancellor, Provost, and EVC of Finance and Administration. The applications will also be available to legal counsel and Human Resources to confirm eligibility. If your application is approved, a member of the retirement operations team will contact you directly regarding the next steps.

No. The retirement incentive is a multi-step process and you must be working or in an approved leave status up until your approved date of retirement. If someone stops working or fails to perform in their job after they apply, they still may be terminated before the date of their retirement. Applying for an agreement or signing an agreement does not relieve an employee from having to perform their job until their date of retirement. If someone is terminated before their retirement, the retirement agreement is void and the employee forfeits the payment.

Your payout is based on your salary at the time of retirement. If your approved retirement application is received and processed within the first half of the month retirement, you will receive your payout the same month of your retirement date. If it is not received and processed in the first half of the month of your retirement, it will be paid out the month following your retirement date. If your retirement date is after January 1, 2024, and you meet eligibility, you may still be able to receive a merit increase. A payout does not receive any matching retirement contributions from the university.

Yes, if they qualify according to the criteria and with certain conditions. If an administrator (non-faculty) meets the staff retirement requirements, they can simply retire, although we would need to ensure that a business continuity plan is put in place ahead of time. If an administrator holds a faculty position, they would need to resign from their administrative position by a certain date (before June 30, 2024) and then return to the faculty and retire as a faculty member by June 30, 2024, or as determined in their retirement agreement. Again, business continuity would be a determinant of the timing of their retirement.

The University cannot provide legal advice regarding this program. Individuals thinking about this program are encouraged to contact the CU System Office to schedule an appointment for individual service at benefits@cu.edu. Retirement is a very personal decision, and we recommend that employees consult with their own attorneys and financial advisors before entering into any retirement agreements. Employee services has many resources on their website for employees, including a Retirement Ready webpage.

The retirement is a binding agreement and will be treated as such.

We’ve set aside one-time funds for this program which will not carry over for future years.

The year-to-year salary and benefits savings are expected to offset the one-time funds used for this program, and not every position will automatically be refilled or filled at the same level.

No. This is a window program based on age plus years of service, regardless of the funding source. Schools/colleges/units will be required to participate in retirement payments at which time the funding source will be considered. 

If the sum of your age and years of service at the University of Colorado is greater than 70 for early retirement and 75 for regular retirement (meaning, you must be a minimum of 55 years old and have served a minimum of five years at the university, measured at the time of retirement, if you are in PERA the rules are different see the PERA section below), you are eligible to apply. For example:

• If you are 69 years old and have worked at CU Denver for one year, you would not qualify.
• If you are 55 years old and have worked at CU Denver for 15 years, you would qualify.
• If you are 67 and have worked at CU Denver for two years, you would not qualify.

If selected, you would receive six months of severance (base AY salary) as calculated over 12 months.

We recognize that IRC faculty are technically hired on contracts. Regardless of your contract, IRC faculty who meet the eligibility criteria can apply.

Your home base assignment will dictate your eligibility. If you are based at CU Denver and meet the eligibility criteria, you can apply. This program is not open to consolidated employees who serve both CU Denver and CU Anschutz.

Employees who retire may transfer into the university’s retiree health plans depending on age and status. The CU System has resources available for individuals considering retirement, including a Retirement Ready webpage.

Vacation and accrued sick leave will be paid out in accordance with university policy.

It depends. Most IRC faculty and staff are eligible to return to employment with a CU campus in a retiree position of less than.49 FTE. Those retiring under PERA are limited to retiree positions less than .49 FTE and in the number of days they can return to work. You are encouraged to review the retirement guide for limitations.

Retirees receive retiree benefits. Check the System retiree guide for details.

Yes. Individuals who are not in PERA can retire with a combined age plus years of service between 70 and 75 receive a pro-rated portion of CU’s payment towards your health benefits. Someone who retires with a combined age plus years of service of 75 get the entirety of the amount that CU pays towards health benefits. Check the system website for specifics.

If the sum of your age and years of service at the University of Colorado is greater than 70 for early retirement and 75 for regular retirement(meaning, you must be a minimum of 55 years old and have served a minimum of five years at the university, measured at the time of retirement, if you are in PERA the rules are different see the PERA section below), you are eligible to apply. If selected, you would receive six months of severance (base salary only). For example:

• If you are 69 years old and have worked at CU Denver for one year, you would not qualify.
• If you are 55 years old and have worked at CU Denver for 15 years, you would qualify.
• If you are 67 and have worked at CU Denver for two years, you would not qualify.

Classified staff members are encouraged to contact the system office (contact information is on the Retirement Ready webpage) and PERA to confirm health benefits based on age and status.

Yes. After sitting out 60 days after employment at CU, a classified employee may be re-employed in a retiree position up to .49 FTE. Any employment after retirement is subject to supervisor discretion and there is no guarantee as part of a retirement agreement.

You may be eligible to be considered for a retirement incentive agreement by meeting the following conditions: 

1. You are employed by the school/college at 50% time or greater at the time of the agreement. 
2. You are tenured and will agree to resign and relinquish tenure in exchange for the incentive. 
3. Your participation is voluntary. 
4. You are at least 55 years of age and have a minimum of 5 years of service.
5. 5. Your age and total years of service at 50% time or greater at CU combined equal at least 70 for early retirement and 75 for regular retirement.
6. You participate in the university's retirement plan. 

The retirement incentive may be up to two full years of your final nine-month base salary (without administrative stipends) capped at the IRS limit for tax deferred contributions to $330,000. The amount of the incentive will be dependent on the number of faculty that are interested because there will be a finite pot of money available. You will be offered two options for receiving the incentive (tax-deferred or non-tax deferred), and you can decide which option is best for you.   

• Tax deferred: You must be at least 55 years old, and a minimum of 5 years of service, to qualify (rule of 70). Selected faculty will receive up to two years of salary paid out over five years directly into their 403(b) account. They cannot work for CU (all institutions) after retirement in any capacity. 
• Taxable: You must be at least 55 years old, and a minimum of 5 years of service, to qualify (rule of 70). Selected faculty will receive up to two years of salary paid immediately, upon resignation, and a portion will be withheld to pay projected tax liability. The portion to be withheld will be at least 22%. Faculty are encouraged to contact their tax advisor to evaluate withholding and their potential tax liability because the incentive may result in a change to one’s tax bracket. This option allows, but does not guarantee or promise, faculty to work for CU after retirement in a “retiree” job classification with less than .49 FTE with retirement benefits and not “employee” benefits.

Your home base assignment will dictate your eligibility. If you are based at CU Denver and meet the eligibility criteria, you can apply. This program is not open to consolidated employees.

No, according to Regents law and policy, nine-month faculty do not receive pay for their unused, accrued sick leave.  

Tenured faculty retiring under the tax deferred option cannot work for any of the CU campuses in any capacity after retirement because of federal tax law. Tenured faculty retiring under the immediately taxable agreement may return in a “retiree” position up to .49 FTE. Any future employment with the university is not guaranteed or promised after retirement and is subject to negotiation and decisions made by the unit, school, or college.

Yes, if you choose the taxable retirement option, you will receive retirement benefits and not “employee” benefits. 

No. According to policy, individual faculty members do not have any entitlement or right to receive an early retirement package. Retirement incentives will be offered first to those who voluntarily submit a request with the highest combination of age plus years of service. This program is designed as a discretionary tool to address the university's financial and programmatic needs and is authorized under Administrative Policy Statement 5016.      

No. The incentive for tenured faculty is paid at the base salary rate at the time of retirement. IRS regulations limit the payment to two times an individual’s base salary. 

Faculty are required to come back for at least one semester after their sabbatical to show their investment to the university. Faculty members who meet the retirement criteria may have their requirements to return waived in order to participate, but they are not entitled to a waiver, and this decision is solely in the discretion of their dean, provost, and the chancellor. 

No. Phased retirements and retirement incentives are mutually exclusive.

Yes, participating faculty members will receive retiree benefits.

Yes. Individuals who are not in PERA can retire with a combined age plus years of service between 70 and 75 receive a pro-rated portion of CU’s payment towards your health benefits. Someone who retires with a combined age plus years of service of 75 get the entirety of the amount that CU pays towards health benefits. Check the system website for specifics.

Eligibility for PERA participants (could be classified, faculty or university staff)

To determine eligibility for CU retiree benefits, Employee Services will consider several factors.

• Age: You must be at least 50 years of age, meaning you have reached your 50th birthday.
• CU years of service: You must have a minimum of five CU qualifying years of service.
• PERA requirements: You must meet PERA’s age and years-of-service requirements to officially retire with PERA. If you elect to receive a lump-sum distribution from PERA or postpone receiving your retirement pension to a later date, you will be resigning (not retiring) from CU and therefore, ineligible for CU retiree benefits.
• Medicare: CU PERA retirees, spouses and dependents who are Medicare eligible are NOT eligible for CU retiree medical and dental benefits. Please contact PERA for information on their plans.

Classified/PERA employees are encouraged to contact the system office (contact information is on the Retirement Ready webpage) and PERA to confirm health benefits based on age and status.

Yes. After sitting out 60 days after employment at CU, a classified/PERA employee may be re-employed in a retiree position up to .49 FTE. Any employment after retirement is subject to supervisor discretion and there is no guarantee as part of a retirement agreement.