Phased Retirement Program 2025-2028
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 is eligible?
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 September.
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 for the department about the application process are explained in the Phased Retirement Program Department Guidelines. You negotiate individually with your academic department head to determine your specific Phased Retirement Program work plan duties (summer school duties are not included). Free feel to use the optional phased retirement workplan template.
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 90 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.
What happens to employee benefit plans?
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.
- TSERS Participants – Next Steps and Continuation of Benefits
- ORP Participants – Next Steps and Continuation of Benefits
Are there annual earning limitations or salary restrictions?
You earn 50% of your full-time base salary just prior to entering the program. One-half of the salary for active employment is a faculty member’s base salary, exclusive of any supplements received for special assignments, summer school, or summer research/overload for the purpose of the Phased Retirement Program. 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 the 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.
Exiting Phased Retirement
Benefits Plans | Information | Notes / Instructions |
---|---|---|
Retiree Health Insurance | Your retiree health insurance will continue upon exiting the Phased Retirement Program | |
Supplemental/Voluntary Retirement Plans 401(k) 403(b) 457 | Contributions will stop when employment ends. For options with these plans, you can contact the vendors directly: Prudential: 1-866-627-5267 TIAA-CREF: 1-800-732-8353 Fidelity: 1-800-642-7131 | Voluntary retirement deductions will end when employment ends. You may elect to have leave payouts deferred into a voluntary retirement plan. |
NCFlex Programs Accident Plan, Dental, Vision, Cancer, Critical Illness, Flexible Spending Accounts, TriCare | Your current NCFlex coverage will end on the date your Phased Retirement contract ends. You will have the option to continue your coverage through COBRA for up to 18 months by paying the full premiums directly to the vendors. The vendors will mail the COBRA offers to your home address once your coverage ends. Find Retirement Dental options at NCretiree.com NCRGEA.com | NCFlex benefits end when your Phased Retirement contract ends. View continuation options for NC Flex plans, including COBRA contact information here: NC Flex Plan Continuation Options |
MetLife Legal Plan | Coverage ends on the date your Phased Retirement contract ends. | MetLife Legal Plans can be continued for a 12-month period following your employment ending. All 12 months of coverage must be paid for in one lump sum to MetLife Legal to continue the coverage. Call 1-800-821-6400 for more information. |
UNC System Term Life Insurance (Securian) | Your UNC System Life insurance ends on the date your Phased Retirement contract ends. Securian will contact you directly regarding continuation options. If you are not enrolled at the time of retirement, you do have the option of electing coverage upon retirement. | Voluntary Retiree Life Summary |
Traveler’s Insurance (home, auto) | Traveler’s deductions end on the date your Phased Retirement contract ends. | Call 919-847-4909 for information on continuing coverage. |
Parking | A parking deduction will continue until you return your virtual permit". An “R” sticker is also available for retirees who wish to continue parking on campus. | Visit Transportation’s Contact Us page and under the “Have a Question or Comment” section choose “Returning Virtual Permits: Chris Dobek”. Fill out the information and include the day you would like for your virtual permit to be returned. These can be future dated. |