Policies and Procedures: Retirement
Immediate Retirement Option
1. General Conditions
The Immediate Retirement Option (the “Option”) 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 Option shall be administered by the Provost, whose decisions and interpretations of the Option are final. The University has the right to modify or terminate this Option, 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 Option will be June 30, 2013, and the Option will terminate on that date. Application for a benefit under this Option 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. No faculty member shall be a Participant in this arrangement unless the Provost has determined that such faculty member's participation will not have a significantly detrimental effect on the interests of the University.
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 Option.
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, tenure, 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.
a. Full-time tenured faculty members who have not elected to receive benefits under another separation or retirement agreement, including but not limited to the Special Phased Retirement Arrangement, have attained (or will have attained during the calendar year) age sixty-six (66) and who will have completed at least ten (10) years of service with the University on the date of Retirement may request a retirement benefit under this Option.
b. Prior to extending participation in the Plan to a faculty member, the Provost must have determined that the Retirement of the faculty member would not have a significantly detrimental effect on the interests of the University. If the Provost has determined that a faculty member’s retirement would have a significantly detrimental effect on the interests of the University but subsequently determines that the faculty member’s Retirement would no longer be detrimental, then, for purposes of eligibility and benefits under this Option, the faculty member may Retire with a benefit of one (1) times the faculty member’s Academic Year Salary on any Optional Retirement Date occurring within eighteen (18) month of the date the faculty member is first notified that his Retirement would no longer be detrimental to the interests of the University.
a. A faculty member desiring to receive a benefit under this Option 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 Option 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 2011, to a faculty member who completes 10 years of service during the calendar year, or to a faculty member who was prevented from Retiring under this Option at any time within the preceding eighteen (18) months by reason of a determination by the Provost that such faculty member’s retirement would be significantly detrimental to the University.
b. Faculty who elect to receive benefits under any other separation or retirement agreement are not eligible to receive benefits under this Option. 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 ten (10) years of service upon date of retirement and who retires under the Option shall receive a single cash payment equal to one (1) times the Participant’s Academic Year Salary.
d. A faculty member who has retired on an Optional Retirement Date after applying for a benefit under this Option 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 Option will be paid to a faculty member who rescinds his or her retirement and he or she will be ineligible to participate in this Option on any later optional retirement date or in any other separation or retirement agreement, including but not limited to the Special Phased Retirement Arrangement.
5. Plan document
In the event of any discrepancy between this summary and the complete Option, the Option shall prevail.
6. Legal requirements
This Option 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 Option are payable exclusively from the University's general assets. The University has retained certain rights to amend or terminate the Option.
7. Taxes and Withholding
The benefit under this Option is subject to applicable taxes, and any benefit paid under this Option will be paid net of any applicable withholding taxes.
Option Authorization Responsible Senior Officers:
David I. Kertzer, Provost