Early Retirement is governed by North Dakota State Board of Higher Education Policy 703.1, and applies to tenured faculty and officers of the institution who are responsible for a major unit and report directly to a president or vice president, and who are members of TIAA/CREF, TFFR, or TIRF.
Early retirement is not an entitlement, and may be used only when the institution has documented benefits resulting from the agreement.
VCSU Eligibility – Any tenured faculty member, vice president or eligible officer of the institution who has served at least five (5) years at Valley City State University shall be eligible for early retirement, providing they meet the Board policy sum of 70 provision (the sum of the age of the employee plus the total years of employment at VCSU)—SBHE 703.1, 3, b, ii—and should demonstrate anticipated savings/benefits to the University in the first year.
- Any eligible personnel shall provide a written request to the President no later than October 15 of the year prior to the year in which the person plans to retire. The President may, in the best interest of the University, approve exceptions to this deadline date. The President shall provide notice of a decision on early retirement requests no later than November 15 of the same year.
- Upon approval from the President, the individual will work with his/her supervisor to complete the NDUS Early Retirement Agreement (see SBHE 703.1 for linked template), a contractually binding written agreement which sets forth all terms and conditions, including but not limited to the amount of payment, the payment date(s), and a waiver of all continuing and nonrenewable rights and recall rights. Both parties will seek legal review of this document before signing.
VCSU Compensation. Two options for early retirement are available at VCSU:
- A phased retirement agreement may be negotiated to allow the employee to work part time for up to two years before retiring.
- An agreement may be negotiated providing a lump sum payment. In such cases, benefits to the University must be documented. Typical lump sum payments are about 25% of the employee’s final year salary; the agreement should demonstrate anticipated financial benefit to the University in the first year.
- In determining the lump sum, the administration may subtract 10% of the final year base salary for each employment year beyond the age of sixty-five (65).
- In the event a faculty member has a valid early retirement agreement as provided in this section, and dies before his/her separation date, the early retirement payment shall be made to his/her beneficiary.
Sponsored by: Faculty Senate
Reviewed: March 2003
Revised: April 2014