STATE BOARD FOR COMMUNITY COLLEGES AND OCCUPATIONAL EDUCATION

Voluntary Retirement Incentive Plan

SP 3-61

APPROVED: October 21, 2020
EFFECTIVE: October 21, 2020

REFERENCE(S): Board Policy (BP) 3-61, CCCS Voluntary Retirement Incentive Plan

APPROVED:

/ Joe Garcia /

Joseph A. Garcia
Chancellor

Application

This procedure applies to administrators, professional and technical staff and faculty of the Colorado Community College System (CCCS).

Basis

Board Policy 3-61 authorizes the creation of a Voluntary Retirement Incentive Plan and promulgates authority to the Chancellor to establish necessary procedures.

Definitions

Base Salary – An employee’s regular salary not inclusive of any supplemental or premium payments such as, but not limited to, extra duty, overloads, overtime, or benefit allowances.

Service Year – One full year of regular, full-time employment within CCCS.

Procedure

Voluntary retirement incentives may be used by the Colleges or System office to encourage voluntary, early retirement as a means of providing a well-earned benefit to eligible individuals and for providing an opportunity to proactively address budgetary and/or ongoing workforce challenges. Use of voluntary retirement incentives require the College or System office to publish a Voluntary Retirement Incentive Plan clearly defining the eligibility, terms and conditions as outlined in this procedure. Plans must be reviewed by System Human Resources prior to publishing.

Each College or the System office shall determine the budget available for each published plan. Published plans must include information about the established budget and how incentives will be allocated. Incentives may be allocated as lump sum payments based on service years and/or lump sum payments to cover the estimated cost of benefits for an established period of time. Incentives may not include continued participation in the SBCCOE benefit plans after retirement. Payments based on service years must be calculated from the employee’s base salary. All voluntary retirement incentive plans must include the eligibility requirements identified in this procedure. Colleges or the System office may establish additional or more restrictive requirements, including which employee groups or departments may be eligible to participate. Limiting participation to specific employee groups or departments cannot be so limiting such that plans may appear to be targeting any employee.

Eligibility:

  • Employees must retire from CCCS within one year of being approved to participate in a plan;
  • Employees must be able to provide official documentation demonstrating a combined number of years of service and age that would allow them to retire under PERA, either early reduced or in full, at time of separation from CCCS;
  • Employees must have at least ten (10) service years with CCCS;
  • Employees who have declared their intent to retire, in writing, prior to a published plan’s application period are not eligible for participation;
  • Employees in grant-funded positions are not eligible for participation.

Voluntary retirement incentive plans must include an application process, with an established application window. All eligible employees who submit an application will be considered according to the terms and conditions of the published plan. Once an application is accepted, it may not be rescinded, unless approved by the Appointing Authority. All participating employees shall waive their rights to continued or future benefit eligible employment within CCCS, and participating faculty shall relinquish all rights associated with due process, per BP 3-20.

Criteria for selecting employees from among the eligible applicants shall be established based upon critical objectives outlined in each published plan. This may include factors such as an employee’s salary placement within their pay range, with greater consideration for those highest in their pay range, and/or demonstrated savings to the College or System office or ability for the College or System office to restructure as a result of the retirement. Consideration of potential hardship or business impact as a result of the retirement can be part of the application review process.

The College or System office and an employee approved for participation in a voluntary retirement incentive plan must mutually agree upon the terms of the retirement. This may include the employee’s final working day, work transition plans, and timing of incentive payments. Agreed upon terms shall be documented, in writing, and authorized by both the employee and the Appointing Authority.

Participation in a voluntary retirement incentive plan is voluntary and no employee may be persuaded or unduly influenced to apply or not apply.
 
Incentive Payments:
Incentives shall be paid as no more than two lump sum payments. All payments will be processed through payroll and subject to all applicable taxes and deductions.

Incentives are not considered earned wages under PERA and are not PERA includable. Incentives will not contribute to an individual’s highest average salary under PERA.

Employees approved for a voluntary retirement incentive shall have their accrued leave paid according to BP 3-60 for retirees. This payment will be in addition to any established incentive payment.

Any eligible employee who receives payment made by mistake of fact or law, or paid contrary to the terms of the applicable published plan, must return the payment to the College or System office.

Disputes regarding Voluntary Retirement Incentives:
All disputes regarding a voluntary retirement incentive or voluntary retirement incentive plan must be submitted in writing to the Human Resources office where the plan was published. Disputes will be reviewed by the Appointing Authority for resolution. Resolutions by the Appointing Authority shall be final.

Revising this Procedure

CCCS reserves the right to change any provision or requirement of this procedure at any time and the change shall become effective immediately.