Policies and Procedures: Retirement
Retirement Plan [effective July 1, 2005]
Retirement Arrangement – Executive Summary
1. General Conditions
The Retirement Arrangement (the “Arrangement”) provides a special retirement benefit to eligible faculty members who retire in accordance with its terms and conditions. The University reserves the right to provide other severance arrangements to other faculty or staff in accordance with its policies and subject to such conditions as may be applicable. The Arrangement shall be administered by the Provost, whose decisions and interpretations of the Arrangement are final. The University has the right to modify or terminate this Arrangement, but any modification or termination shall not affect the rights of faculty who have already retired under it. Unless sooner terminated, the last Optional Retirement Date under this Arrangement will be June 30, 2010, and the Arrangement will terminate on that date. Application for a benefit under this Arrangement must be made to the Provost at least six months prior to the date on which retirement is to occur. No benefit shall be payable to any person if the faculty member dies prior to retirement.
2. Definitions
a. "Academic Year Salary" means, for each fiscal year (July 1 - June 30) in which an optional retirement date occurs, the faculty member's salary paid by the University for the prior regular 9 month academic year (whether paid in 9 or 12 monthly installments). For this purpose, "salary" means the annual stated rate of pay relating to the employee's position as a member of the faculty and does not include items such as benefits (including health coverage and retirement contributions) or additional pay for special projects or duties.
b. "Optional Retirement Date" means the first working day of January and June 30 of each calendar year in which the Participant may retire under this Arrangement.
c. "Participant" means a faculty member who meets the eligibility requirements of the Plan.
d. "Plan Waiver" means a waiver and release of claims that a Participant must sign on his or her Retirement Date in order to receive benefits under the Plan. The contents of a Plan Waiver shall be determined by the Provost in his or her sole discretion but shall include a waiver of any claims theretofore accruing under the Age Discrimination in Employment Act.
e. "Rescission Period" means the period beginning on a Participant's Retirement Date and ending 21 days thereafter.
f. "Retire" or "Retirement" means a final separation from the service of the University. Such final separation shall include a final relinquishment of all benefits and attributes of employment including, but not limited to, salary, benefits, office, and laboratory space. Notwithstanding the foregoing, an individual shall not be treated as having failed to retire solely by reason of performing ad hoc services for the University as an adjunct faculty member pursuant to an arrangement generally available for such services.
3. Eligibility
Full-time tenured faculty members who have not elected to receive benefits under another separation or retirement agreement, have attained (or will have attained during the calendar year) age sixty-six (66) and who will have completed at least fifteen (15) years of service with the University on the date of Retirement may request a retirement benefit under this Arrangement. Faculty who were eligible to retire under this Arrangement after October 7, 1998 and before 2006 shall have their eligibility and benefits determined under the documents in effect at the time they were eligible to retire under this Arrangement.
4. Retirement
a. A faculty member desiring to receive a benefit under this Arrangement must retire on an Optional Retirement Date. During any year that the faculty member is eligible to elect to retire under this Agreement, there are two optional retirement dates: the first working day of the calendar year and June 30. This Arrangement shall expire with respect to any faculty member who does not retire on an Optional Retirement Date. The last Optional Retirement Date is June 30 of the calendar year in which the Participant reaches 68 years of age; provided, however, that the maximum age limitation shall not apply to retirements on Optional Retirement Dates in 2006, to a faculty member who completes 15 years of service during the calendar year.
b. Faculty who elect to receive benefits under any other separation or retirement agreement are not eligible to receive benefits under this Arrangement. The preceding sentence does not apply to retirement benefits under a plan described in Section 401 (a) or 403 (b) of the Internal Revenue Service Code.
c. A faculty member who will have provided fifteen (15) years of service upon date of retirement and who retires under the Arrangement shall receive a single cash payment equal to:
(1) 1.75X the participant's Academic Year Salary plus $10,500 should retirement occur during 2006 or during the calendar year the participant reaches 66 years of age or completes 15 years of service;
(2) 1.375X the Participant’s academic year salary plus $10,500 should retirement occur after 2006 and during the calendar year the Participant reaches 67 years of age with more than 15 years of service;
(3) 1.00X the Participant’s academic year salary plus $10,500 should retirement occur after 2006 and during the calendar year the Participant reaches 68 years of age with more than 15 years of service.
f. A faculty member who has retired on an Optional Retirement Date after applying for a benefit under this Arrangement may rescind the retirement within 21 days after the Optional Retirement Date by delivering a written notice of rescission to the Provost. The notice must be received in the Provost's office within the 21-day period. No benefit under this Arrangement will be paid to a faculty member who rescinds his or her retirement.
5. Plan document
In the event of any discrepancy between this summary and the complete Arrangement, the Arrangement shall prevail.
6. Legal requirements
This Arrangement has been adopted subject to the condition that it is not subject to the participation, vesting, or funding standards imposed by the Employee Retirement Income Security Act of 1974, as amended. Benefits under this Arrangement are payable exclusively from the University's general assets. The University has retained certain rights to amend or terminate the Arrangement.
7. Taxes and Withholding
The benefit under this Arrangement is subject to applicable taxes, and any benefit paid under this Arrangement will be paid net of any applicable withholding taxes.
Arrangement Authorization Responsible Senior Officer:
David I. Kertzer, Provost
