Implementing Early Retirement Incentive Programs: A Step-by-Step Guide

By Heidi S. Hayden and Diane M. Pfadenhauer · Thomson/West · 2005 · RET101-117-25

Study guide: Exam RET-101

An article from the September/October 2005 issue of HR Advisor (Thomson/West) by Heidi S. Hayden and Diane M. Pfadenhauer. It provides a step-by-step framework for the development of an Early Retirement Incentive Program (ERIP), a program that provides incentives to encourage employees approaching or at retirement age to retire voluntarily earlier than they otherwise might have. It explores the business and legal issues to consider and the steps of putting a program together: the release, eligibility, window, incentives, costs and announcement.

On the syllabus

• Exam RET-101 — RET101-117-25; outcome 3b.

Introduction

Considerations

• Business Considerations
• Legal Considerations

Steps to Develop an ERIP

• 1. Determining the Eligibility
• 2. Retirement Effective Date
• 3. Retirement Incentive Window
• 4. Program Offerings
  • a. Pension Plan
  • b. Health Insurance
  • c. Termination Incentive Bonus
• 5. Program Costs
• 6. Release
• 7. Preparing for the Announcement
• 8. The Announcement

Conclusion

Notes

Exhibit 1

Sources

• Implementing Early Retirement Incentive Programs: A Step-by-Step Guide (Heidi S. Hayden and Diane M. Pfadenhauer, HR Advisor, September/October 2005) — the document as reprinted on shrm.org: title, authors, the issue and © 2005 Thomson/West notice, the introduction's statement of purpose and the section headings; the article is identified with the SOA's reading by its title, since the SOA's study notes are sold through its online store and were not seen
• RET 101 Syllabus, Nov 2026/Mar 2027/Jul 2027 (SOA) — the citation (RET101-117-25) and the learning outcome
• RET 101 Course Strategy Guide, Nov 2026/Mar 2027/Jul 2027 (SOA) — the guide's description of the reading as discussing unique considerations when implementing early retirement incentives