Faculty Retirement Option Program
Frequently Asked Questions
Q1: If I elect Plan 1, can I elect to defer the incentive payment from October, 2013 to 2014?
A1: No, the incentive payment cannot be deferred into the next year – regardless of when its paid, its
considered to have been in “constructive receipt” in 2013 and must be taxed in 2013. So even if it was
deferred into 2014, it would be taxable in 2013.
Q2: If I elect Plan 1, can I elect to have 403(b) contributions taken out of my incentive payment?
A2: No, 403(b) contributions cannot be deducted from post-retirement payments. You should consider
increasing your contributions on your salary from January 1, 2013 through August 31, 2013 to
maximize your contribution.
Q3: If I elect Plan 2 or Plan 3, can I work 100% either semester or 50% for both semesters?
A3: Yes, you can elect either option. You should discuss this arrangement with your dean.
Q4: Can I apply for a position as an adjunct or part-time after my retirement date?
A4: Yes, you are eligible for adjunct or part-time employment following retirement.