Phased retirement

Phased retirement allows participants to withdraw from their ORP accounts and work part-time for up to three years before full retirement from ASU. 

Eligible faculty and staff who meet the criteria must negotiate and document the dates, length and percentage of reduced work schedules with the dean or vice president of your unit or department. You can specify different percentages for different periods of your phased retirement. The standard range will vary between 50% and 95% time full-time equivalent. 

Phased retirement agreements are irrevocable and you may not be eligible if you already have an existing retirement agreement. Review the ORP Phased Retirement Program Process for an overview. 

You may be eligible for phased retirement if you are:

• At least 62 years old.
• Fully vested in the Optional Retirement Plan
• Sign an irrevocable, written legal agreement and release with ASU.

Benefits during phased retirement 

Employee and employer contributions will continue until your retirement date if you maintain at least 50% FTE status. Health and vacation leave accruals and contributions to some benefits, including disability and life insurance, are based on your FTE status and will be adjusted accordingly. 

Note: You must maintain at least 50% FTE status to retain certain benefits. If you reduce your schedule to below 50% FTE, you will: 

• Lose your group insurance benefits. 
• Stop contributing to the ORP at the end of the fiscal year. 
• Become ineligible for the Retiree Accumulated Sick Leave Program. 
• Becoming ineligible for ASU retirement.

Faculty or academic professionals 

Tenured faculty or academic professionals with continuing status irrevocably relinquish all tenure and employment status rights at the end of the phased retirement period. These types of employees will continue to be subject to regular employment contract renewals during the phased retirement period. Participation in the phased retirement program does not create a guarantee or implied agreement of continuous employment. 

Returning to work after phased retirement 

There is no guarantee of future employment after your formal retirement date, but the program does allow ORP participants to return to work after retirement if positions are available. However, to protect the tax-deferred status of the retirement plans, you cannot make any oral, written or implied agreements to work after retirement before your retirement date. 

If you return to work for at least 50% FTE for at least 90 days, you will be subject to the same benefits eligibility requirements as other ASU employees, including participation in a retirement plan. If you are already receiving pension benefits, you will be exempt from ASRS participation but can participate in ORP. 

Review the "Working after retirement" webpage for additional rules for returning to work.