Idaho State University Early Retirement Incentive Program FY2027
Idaho State University is pleased to announce an Early Retirement Incentive Program (ERIP) for FY2027 to support strategic opportunities and financial priorities. Authorized under Idaho House Appropriations Bill 876, this one-time voluntary program provides financial incentive payments to eligible employees. Retirement effective dates are June 5, 2027, for staff, and the end of the FY2027 contract period for faculty.
This incentive is funded through ongoing personnel savings without utilizing state-appropriated funds or student tuition. Participation in the ERIP is strictly voluntary. Employees are under no pressure to apply and are encouraged to carefully review all program details to determine if participation aligns with their personal retirement goals.
Eligibility
To qualify for the FY2027 ERIP, an employee must meet all of the following requirements as of June 30, 2027:
- Currently holds a regular, ongoing benefits-eligible position funded by central appropriated, local or auxiliary funds. (Positions fully funded by sponsored grants, special appropriations, Career Technical Education (CTE), temporary emergency hire, or limited service positions are not eligible).
- Be at least 60 years old.
- Have completed at least 5 years of institutional service in a benefits-eligible position at ISU.
- Agree to fully retire effective June 5, 2027, or the end of the FY2027 contract period for faculty.
- Have not submitted an official intent to retire or resign to Human Resources prior to the program announcement on October 19, 2026.
- Not hold a cabinet-level leadership position (VPs, AVPs, and Deans are not eligible).
- Submit application within established program timeline (see below).
- Eligible employees will receive a one-time, lump-sum payout equivalent to 50% of their base salary (calculated using base salary as of the application date of November 6, 2026).
- Base salary excludes overload pay, overtime/compensatory time, temporary or interim responsibility salary increases, administrative stipends, or other supplemental pay.
- The incentive payment will be paid on the June 18, 2027 pay date, the final pay date recorded in FY2027. Academic year faculty and staff on deferred pay agreements will continue to be paid according to the regular deferred pay schedule for FY2027.
- Taxes & Contributions:
- Incentive payments are subject to applicable federal and state payroll taxes.
- No standard retirement benefit deductions or matching contributions (ORP or PERSI) will be applied to the incentive payout.
- At the employee's request, a portion or all of the incentive payout may be directed into supplemental tax-deferred retirement accounts (401k, 403b, or 457b), subject to IRS contribution limits. Request forms must be submitted to Human Resources no later than 11 calendar days prior to the employee’s final pay date.
Leave balances will be paid out on the final paycheck in accordance with ISU Policies and Procedures (ISUPP 3070 and 3150):
- Vacation Leave: All accrued, unused vacation leave will be paid out at the standard base rate of pay. Employees may opt to use earned vacation leave leading up to the established retirement date (“Vacation Out”). Employees that opt to “Vacation Out” must verify available vacation balance with HR and submit written notification to their supervisor specifying the planned last day actively worked.
- Compensatory Time: Accrued, unused compensatory time will be paid out at the employee’s regular rate of pay for all accrued compensatory hours remaining in their balance. (Classified staff only).
- Sick Leave Entitlement: Sick leave is not paid out. A portion of unused sick leave may be converted to a monetary credit to pay for ongoing retiree medical insurance premiums, subject to statutory service caps. For details, refer to the Sick Leave Entitlement Matrix or contact PERSI at 1-800-451-8228.
Separating employees will maintain health coverage through the State Office of Group Insurance guidelines based on their employment contract:
- 12-Month Staff: Coverage continues through June 30, 2027 for retirements effective June 5, 2027.
- 9, 10, and 11 Month Faculty: Coverage continues through August 31, 2027 for retirements effective at the conclusion of the FY2027 contract period.
- 12-Month Faculty: Coverage continues through July 31, 2027 for retirements effective June 19, 2027.
- Disciplinary & Status Review: Employees remain subject to all university policies and performance expectations through their final day of employment. ISU reserves the right to condition or deny an application in cases involving a pending notice of disciplinary action or notice of nonrenewal with potential for involuntary termination, including active matters under appeal (ISUPPs 3030, 3130, 3190, 4039).
- Early Separation / Termination: The University’s obligation to pay the Retirement Incentive becomes null and void if the employee's service ends before the agreed Separation Date due to death, resignation for any reason, or an involuntary termination conducted in accordance with University policy.
- Re-employment Restrictions for ERIP Retirees:
- Benefits-Eligible Positions: Ineligible for rehiring until July 1, 2029 (the start of FY2030).
- Temporary / Non-Benefit Eligible Positions, including Adjunct Faculty, Temporary Hourly or Student Hourly employee: Eligible for rehiring starting July 1, 2028.
Program Timeline & Application Process
- November 6, 2026 - Application Opens: The electronic Application of Interest form becomes available via DocuSign.
- January 4, 2027 - Final Application Deadline: Applications of Interest must be completed and submitted via DocuSign.
- Review Phase: HR and the Budget Office will verify eligibility (age, service, salary, position funding) and route information to supervisors/leadership chains as an FYI for operational impact planning. Operational impacts will not prevent or restrict eligibility and participation in the program, and departments must create contingency plans accordingly.
- February 1, 2027 - Final Notification & Separation Agreement Sent: HR will notify qualifying applicants and provide a formal separation agreement and waiver for consideration no later than this date. Employee has 45 days to consider and accept/sign the formal ERIP offer.
- March 18, 2027 - Final Agreement Deadline: Employees must sign and return the formal ERIP agreement and waiver to Human Resources within 45 days of final notification and separation agreement. If the agreement is not returned by this deadline, or 45 days after final notification and separation agreement has been sent by HR, the offer expires.
- The employee has seven calendar days from the date they sign the final agreement to rescind it by submitting a written notice to Human Resources via email to benefits@isu.edu.
- June 5, 2027 - Retirement Effective Date: Final day of employment for 12-month staff (or end of FY2027 contract period for academic year faculty/deferred pay staff). Retirement dates cannot be extended beyond this timeline.
The ERIP is being implemented for FY2027 to respond to critical financial and strategic issues and opportunities for the institution. Those who are eligible and choose to participate will be contributing toward ISU’s long-term financial resilience and continued progress toward strategic goals.
The ERIP will give eligible employees who agree to fully retire at the end of this year a one-time payout equivalent to 50% of their base salary.
ISU was given one-time approval from the Legislature for this year only, we don’t anticipate seeking or receiving approval in the future.
Division and department leaders will use the Opportunity Aligned Resourcing (OAR) Personnel principles to evaluate operational needs. This ensures we maintain core academic and departmental priorities while making continued progress toward ISU’s long-term financial health and strategic goals.
A: Yes. Faculty members currently on an approved sabbatical who meet all other ERIP eligibility requirements may participate, provided they agree to fully retire at the end of their FY2027 academic year contract period.
For participating faculty, the requirement outlined in ISUPP 4030 to return to the university for at least one full academic year following a sabbatical will be waived.
Yes, as long as they meet the standard eligibility requirements.
A request for Emeritus status can be initiated by either the retiring faculty member or their departmental colleagues. Submissions must follow the Office of Academic Affairs timeline and process, which typically includes a letter of nomination/request and supporting documentation verifying eligibility.
No. Managers and supervisors should not suggest, imply, or encourage specific employees to express interest in the ERIP. Because retirement decisions are deeply personal, participation must remain entirely voluntary. Your role as a supervisor is to remain neutral, support employees who express interest on their own, and work with leadership to manage team impacts.
Listen empathetically and share factual details about the program, but do not offer personal advice or recommendations. Even casual comments can carry undue weight or be misinterpreted. Instead, guide the employee to official ERIP resources or Human Resources, where they can get the neutral information they need to make an informed, independent decision.
Approval is based on objective measures that do not include performance. A high performing employee or a hard-to-replace employee cannot be denied on that basis. All eligible employees will be treated equally.
No. Eligibility and approval is based on objective measures that do not include performance. Supervisors need to work with HR to address performance concerns regardless of whether an employee is eligible or applies for the program. All eligible employees will be treated equally.
An employee who retires under ERIP is not eligible for immediate rehire. After a one-year break in service (starting July 1, 2028), a retired employee may be eligible for rehire in a non-benefits eligible position. One example would be returning for Fall 2028 semester as an adjunct-faculty position. An employee who retires under ERIP is eligible for rehire after a two-year break in service, with eligibility starting July 1, 2029.
Yes.
Yes. After final notification and agreement of participation in the program from HR has been sent, and the seven-day revocation period has ended, a supervisor and employee who has been approved should discuss the upcoming retirement date and a plan for transitioning work and responsibilities.
Yes. The appropriate leadership chain, starting with the employee’s supervisor, will receive notification when the Application of Interest is submitted by the employee, and when the Notification of Eligibility is sent back to the employee from HR.
This notification is intended strictly as an FYI for operational awareness, allowing leaders to support their teams, assess potential impacts, and begin preliminary workload planning.
CTE, Special, Grants, VPs . . .
Eligible employees will receive a one-time, lump-sum payout equal to 50% of their base salary as of the November 6, 2026 application date. Base salary excludes overload pay, overtime or compensatory time, temporary or interim responsibility pay increases, administrative stipends, and all other supplemental pay.
No. ERIP is open strictly to current employees who meet all eligibility requirements and retire at the end of the 2026–2027 academic year or by June 5, 2027.
No. If Human Resources received your formal notice of retirement prior to the program announcement on October 19, 2026, you are not eligible for ERIP.
ERIP is specifically designed to incentivize voluntary early retirement among employees who were not already planning to retire, directly supporting ISU’s strategic goals and long-term financial priorities.
Employees can return as an adjunct professor after taking a full 1 year break.
Once you submit an Application of Interest, you will receive a notification regarding your eligibility status. If you are eligible, this notification will include an explanation of your 50% incentive payment calculation as well as a formal separation agreement.
The program is conservatively estimated to generate $600,000 to $1 million in ongoing annual savings in personnel expenses.
Additionally, no state-appropriated funds or student tuition dollars will be used to fund the incentive payouts.
No. While ERIP is expected to generate ongoing personnel savings, the program is strictly voluntary and is not tied to a specific financial or participation target.
Decisions regarding refilling vacancies resulting from ERIP will follow the established Opportunity Aligned Resources (OAR) personnel process, ensuring future resource allocations directly support ISU's ongoing goals and opportunities