Evaluation shows early retirement incentives too costly

Implementing early retirement incentives at Northern Arizona University would produce limited—if any—savings and would impose difficult personnel burdens.

As a result, NAU will not be offering an incentive plan.

An evaluation was made by Human Resources, the Provost’s and President’s offices, Affirmative Action, Administration and Finance, Planning and Institutional Effectiveness and legal counsel. It was presented to the President’s Cabinet on Tuesday indicating that incentives to faculty and staff to retire earlier than planned would not be of immediate help in addressing the current budget crisis.

Further, the results yielded concerns about the number of retirements that might be generated under such a program during a time where NAU cannot afford to lose a disproportionate number of personnel in certain areas.

A similar evaluation was completed in 2003, resulting in comparable findings.

This does not prevent NAU faculty and staff from pursuing options for retirement within their particular retirement system, the Optional Retirement Plan or Arizona State Retirement System.

The Arizona Board of Regents has authorized the state universities to offer a Phased Retirement Program to appointed staff who meet certain criteria and are enrolled in the ORP.  Details of that option can be found here.

NAU faculty and staff enrolled in the Arizona State Retirement System should contact ASRS Member Services at (800) 621-3778 to discuss options.

NAU Human Resources provides information for those preparing to retire and individual retirement counseling meetings can be arranged by contacting your assigned benefits staff person