HRMS - Hiring a Retiree
June 4, 2004
The attached business process has been developed at the request of the
Employee Benefits Area, to clarify the proper procedures to use when
hiring an individual who has retired from the University.
Please read this business process carefully as it contains information
that is of importance now, due to the many retirements currently
Questions on this policy should be directed to Employee Benefits at
612/624-9090. Questions on HRMS processing should be directed to
HRMS/Payroll Call Center at 612/625-2016.
All subsequent hires of a retiree must follow these basic guidelines:
· If Retirement/Retirement: Hires MUST be on a separate record ? Departments MUST NEVER build on top of the Retirement/Retirement row! (NOTE: Building on top of a Retirement/Retirement row will have a serious detrimental impact on benefit processing.)
· If Termination/Retirement: Hires may be built upon the Termination/Retirement row or begin a new record.
· In all cases use Action/Reason of Hire/Retiree Appointment!
· In all cases the Appointment Type on the subsequent hire MUST be ?R?. No exceptions!
Note: Use of the Appointment Type ?R?, and Action/Reason - Hire/Retiree applies to Terminal agreements, Non-renewed Academic Professional & Admin Staff with >3 years service, and Laid off staff with >3 years service which all use the Action of Terminate With Benefits. This Terminate With Benefits row is in effect the Retirement row. Any subsequent hires of individuals with this action must use the ?R? Appointment Type, and should use Action/Reason - Hire/Retiree Appointment.
All subsequent hires of a retiree require a break-in-service in order for the system and IRS to recognize the retirement.
· Layoff/Non-Renewal: The break-in-service must be as long as the number of weeks they are being paid out. The individual cannot return to a paid position prior to the expiration of their payout.
· RIO: The break-in-service must include at least one pay period without a paycheck.
· Regular Retirement: The break-in-service must include at least one pay period without a paycheck.