Iowa State University

2009-2010 Retirement Incentive Option 2 Program (RIO2)

General Terms and Conditions

1. Eligibility

Any current Iowa State University employee* who has completed ten (10) years of service and is fifty-seven (57) years of age or older at time of retirement but no later than July 30, 2010, will be eligible. Employees must file an application between December 1, 2009 and March 31, 2010, and fully retire no later than July 30, 2010 (last working day in July). Employees on federal retirement programs are subject to the separate Retirement Incentive Option (RIO2) provided for such employees.

2. Application Process and Approval Requirements for Retirement Incentive Option

Any eligible employee may apply for the Retirement Incentive Option 2 Program by completing the 2009-2010 Retirement Incentive Option 2 Application form. The request is voluntary and initiated by the employee. The application is subject to review by the respective department chair/director/dean and vice president. Applicants will be notified as to the status of their request for the Retirement Incentive Option 2 Program no later than 30 calendar days following submission of the application.

3. Incentive Benefit

Upon retirement, the participant will be provided health and dental insurance coverage based on current health and dental elections for a period of five (5) years after retirement. The university will pay the employer and employee shares of health and dental insurance up to the employee and spouse/domestic partner rate (ISU HMO and PPO health programs) and up to the employee and family rate (State of Iowa health programs).

Employees less than age 60 when approved for RIO2 will receive health and dental benefits as outlined. Upon completion of five (5) years of university paid benefits, participants may be allowed to continue health and dental benefits under health retirement plans available to retirees. Participants will pay normal retirees rates.

Employees age 60 or over when approved for RIO2 will receive five (5) years of university paid benefits. Upon eligibility for Medicare, the university will continue to pay health and dental premiums at the retiree health and dental insurance rates for the balance of the 5-year period (if any).

Employees in the ISU HMO and PPO programs with additional dependents (in addition to spouse/domestic partner) will be provided the opportunity to make additional contributions to obtain family coverage for them.

In the event of the employee's death, the university's obligation to pay the cost of the health and dental coverage will cease on the first day of the month following the date of death. The employee's surviving spouse or dependent(s) may elect to continue coverage as provided by other university policies or by law.

*Eligible Employee - defined as 1/3rd time appointment or greater as of July 30, 2010 (Faculty, Professional and Scientific and Supervisory Merit) or 1/2 time appointment (Non-Supervisory Merit).