The Active Retirement program
allows employees who retire to continue to work from one day up to a 49%
assignment each year. To be eligible to participate an employee must be in
retirement status with Arizona State Retirement, and have a minimum of ten (10)
years of service with MCCCD as a full-time regular employee. (OYO status years
excluded). Participation in the Active Retirement Program is not guaranteed, an
appropriate assignment needs to be available. Please notify your supervisor or
retirement coordinator if you would like to participate in the Active Retirement
Program. The level of participation in the Active Retirement Program along with
the assignment must be approved each year. Retirees may participate in the
Active Retirement program up to five (5) years.
Here is some general information regarding hours and compensation for an Active
Retiree.
Are the number of
hours determined in advance?
Because the department
has to budget for the retirement position, the hours for the assignment need to
be determined in advance. There may be some flexibility in the work schedule
depending on the needs of the department. However, it is the responsibility of
the retiree to monitor their hours, so they do not exceed the amount allowed by
the program and Arizona State Retirement.
Can the number of
hours change from year to year?
Yes, an example would
be a retiree that elects 49% one year, reduces to 20% the next year, and chooses
to work only one day the last three years. Or any variation either increasing or
decreasing the annual number of hours.
Can an Active
Retiree stop participation in the Active Retirement program and return to work
full time?
According to
legislation (HB 2050) that was passed in the spring of 2001, if a retired member
of ASRS is separated from employment for at least 12 months with no
contributions made to ASRS during that period of separation, they may return to
work up to full time and still be eligible to receive their ASRS pension. The
employee may return to the Active Retirement program up to the amount of time
that remains of the five years from their original retirement date.
What will be my
rate of pay, and will I get raises?
Compensation will be
based on the schedule in effect on the date of retirement. You will remain at
this same rate for the full number of years you are eligible to participate in the program. No step changes or cost
of living adjustments will be applicable.
Active Retirement Benefits
What about Medical
Insurance?
Participants in the
Active Retirement program receive $1,500.00 per year of wages in lieu of
benefits. MCCCD will offer COBRA coverage to retirees at the time of retirement.
COBRA is a temporary extension of coverage at the group rate for up to eighteen
(18) months. Retirees who elect COBRA coverage will waive the $1,500.00 of
credits given to retirees for the full number of years your are eligible to
participate in the
Active Retirement program. As MCCCD does not provide the Active Retirees medical
and dental insurance, most retirees choose to sign up for insurance with the
Arizona State Retirement System. The phone number to contact ASRS is 602
240-2000, for more information about their program.
How is the
$1,500.00 paid to me?
The benefit credits
are paid over twenty four (24) pay periods, even if you were a nine month
employee prior to retirement. This amounts to $62.50 of taxable income twice a
month.
Can I continue
my life insurance coverage?
When you retire you
may do a conversion of your life insurance coverage if you are under age 70. If
you participate in the active retirement program you may continue up to $50,000
of life insurance coverage at the group rate. The amount you continue depends on
the amount you have at the time of retirement.
What about
Flexible Spending accounts?
Retirees are not
eligible to participate in Flexible spending accounts. If you are participating
in one, at time of retirement, make sure you have all expenses incurred and paid
for prior to your last date of employment. You will have ninety (90) days to
submit your claim for reimbursement.
Can I continue
my Tax Sheltered Annuity?
Yes, retirees may make
contributions to the TSA program. When you retire your contributions will be
terminated, so you will need to submit a salary reduction agreement to restart
deductions. Call the benefits office to request a form.
Do I receive
sick time?
Sick leave is neither
earned nor can it be used by participants in the Active Retirement Program. If
the absence is one or two days the retiree may be assigned another duty to make
up the time. If a longer absence occurs, the pay will be docked.
Are retirees
eligible for tuition waivers?
Yes, participants in
the Active Retirement program can take classes at any of the Maricopa Community
Colleges and have the tuition waived. Spouses and dependents of Active Retirees
are not eligible for tuition waivers.
