The school's trustees approved the plan Thursday in hopes of freeing up about $2.5 million to boost salaries and put more money into its top priorities. School leaders say it's also an effort to limit tuition increases.
The early retirement plan will be available for faculty and staff who have worked at UofL at least seven years and whose age plus years of service equal at least 75.
Faculty members who sign up will receive one year's salary and staff members will receive six months of pay.
Provost Shirley Willihnganz says about 300 employees expressed interest.
Last month, Eastern Kentucky University's president warned of job cuts as part of a budget reallocation at the Richmond school.