In some cases UCAR employees may wish to phase into retirement by reducing their appointment to less than full time for a specified period prior to full retirement. A phased retirement arrangement may be available to employees in this situation. This arrangement is completely voluntary on the part of the employee; however, any such arrangement is subject to individual written agreement and is at UCAR’s discretion. To supplement the reduction in pay due to the reduction to part time hours, the UCAR Retirement Plan through TIAA-CREF has been modified to allow employees age 59 ½ or older to make withdrawals from their retirement accounts while employed by UCAR.

Employees on part-time appointments are eligible for benefits as stated in the benefit plans (as amended from time to time). Many benefits are reduced with the reduction in earnings. For example: current life insurance and Long Term Disability coverage are both based on salary, so any reduction in salary reduces the benefit proportionately. Currently, health insurance contributions are based on FTE, and employees on part-time appointments are required to make higher contributions. Contributions to TIAA-CREF and the UCAR match presently are based on actual earnings and continue even if employees elect to take withdrawals from their account. Employees should consult each plan summary for more details.

Employees wishing to formalize a phased retirement may enter into an agreement specifying the term of the phased retirement and the reduction in appointment. A phased retirement agreement may be for an initial term of up to three years. It may also be for one year renewable for additional terms. Issues such as the employee’s appointment or duties and administrative support during the term may be addressed in a separate “work agreement.” Each phased retirement agreement is determined by the individual needs of the employee and programmatic requirements. Phased retirement agreements may address financial issues during the term of the agreement. Please note that the availability or terms of any future phased retirement arrangements may be altered or discontinued by UCAR at any time.

For additional information contact your Division or Program Director, or Human Resources.

May 2004