Faculty Rights Tip: Thinking about Retirement? Know Your Rights to the FERP and PRTB Programs

As the academic term comes to a close and we contemplate our futures under both an uncertain state budget and national political landscape, some faculty are pondering the question of when, and how, to retire from the CSU. For tenured faculty, two options – “FERP” and “PRTB” – are important to consider.

If you are in the latter part of your career in the CSU, you may begin contemplating a retirement plan. You have options on the path to retirement from the CSU.

As a result of our work in fighting off retirement takebacks from CSU management, our CBA continues to provide two programs for tenured faculty who are close to retirement. Article 29 covers the provisions for the Faculty Early Retirement (FERP) program, and Article 30 covers the Pre-Retirement Reduction in Time Base (PRTB) program.

The FERP program allows eligible faculty to retire and continue teaching for a time base of up to 50%. Participating faculty may draw their retirement and 50% of their annual salary for up to five years.

During negotiations for our current Collective Bargaining Agreement (CBA) CFA members defended and secured the FERP program after CSU management spent over a year of effort trying to trim it from five years down to three years. CFA members prevailed, and FERP remains in place without changes or cuts to its provisions.

The PRTB program allows eligible faculty to phase into retirement through a reduction in time base before retiring while maintaining full retirement credit and other benefits for a maximum of five years. Pre-tax income and sick leave are reduced proportionally during the period of participation in PRTB, but retirement service credit and final retirement benefits are calculated based on the full-time equivalent salary at the time of retirement.

Determining which program is the best fit for you is key, as faculty employment and life situations vary. You can read Article 29 and Article 30 to see the specific provisions. To learn more, contact your campus human resources department.

You can also find additional help on CFA’s Retirement Resources page, including FAQs and a webinar, here.

Want to learn more? Become active with your local CFA chapter Faculty Rights team. Find your representative here.

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