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:
Mark S. Schlissel, Provost
Special Phased Retirement Arrangement
Tenured faculty with at least 10 years of service who are age 65 or older are eligible to phase out of full-time work by voluntarily electing to reduce their effort for up to three years, followed by retirement. For academic year 2010-11, the special phased-retirement option will be available to all eligible faculty turning age 65 or older during 2010. Following the 2010-2011 academic year, the special phased-retirement option will be available only to eligible faculty age 65 to 70.
a. Length. The Phase-Out Period shall be for one to three academic years in accordance with the provision that no phase-out period may extend beyond June 30, 2016. A faculty member may reduce (but not increase) the Phase-Out Period by one or two academic years, as applicable, by providing written notice of such reduction to the Provost of the University at least six months prior to the end of the academic year during which such reduction is to take effect.
b. Workload. During the Phase-Out Period, the faculty member agrees to work a 51% workload (which may consist of one full-time semester and one semester off, or two part-time semesters, in consultation with the Department Chair) for each academic year, and shall be subject to all applicable University policies.
c. Compensation. For each academic year during the Phase-Out Period, the faculty member receives 51% of annual base salary which shall be paid in equal installments over the course of the academic or calendar year, subject to the option selected at the beginning of the year, regardless of whether the faculty member’s status is full-time or half-time for any given semester. In addition to such salary, the faculty member will receive an additional $25,000 each academic year of the phase-out period (the “Special Salary Supplement”), to offset the costs of individual life insurance coverage and any additional expenses associated with health or welfare benefits. This supplement shall be paid in even installments over the course of the academic year (regardless of full-time or part-time status for any given semester). Both the salary and the Special Salary Supplement during the Phase-Out Period shall be eligible for standard retirement plan contributions by the University.
d. Benefits. During the Phase-Out Period, the faculty member will be entitled to the regular benefits available to full-time benefits-eligible employees of the University, except as follows:
(i) Long Term Disability Coverage(which is not available for part-time employees); In lieu of long term disability coverage, the faculty member will be entitled to up to one year’s medical leave (at 51% salary), plus the Special Salary Supplement, in the event that a documented medical condition renders him or her unable to teach during the Phase-Out Period.
(ii) Life insurance coverage (which is not available for part-time employees); a part of the Special Salary Supplement referenced above may be used to convert to equivalent individual life insurance coverage during the Phase-Out Period.
(iii) The faculty member shall not be entitled to take a sabbatical, or accrue service credit toward a sabbatical during the Phase-Out Period.
As of the effective date of retirement, any and all claims for continuing Brown University employment or benefits incidental thereto, financial or other, (including salary, benefits, office, or laboratory space, etc.) except as expressly stated in any retirement agreements, shall be extinguished. Applicable privileges and courtesies may be granted to emeriti faculty in accordance with such Brown University policies as may be in effect at the time of enjoyment.
The faculty member shall have access to any Brown sponsored post retirement health insurance plan for faculty in accordance with the terms and conditions of the plan in effect at the time of retirement for so long as such plan shall be in effect and shall have access to any other university sponsored post-retirement health insurance plan consistent with the access provided to all other faculty who are post-retirement at the time of adoption of any new plan. All access will be subject to and in accordance with any applicable state or federal laws. There shall be no contribution made by Brown on behalf of the faculty member to any plan available or selected. Nothing in the foregoing requires Brown to continue sponsoring any specific plan or offering any plan and Brown reserves the right to adopt a new plan, change sponsors, or to offer no plan, as it deems in its best interests.
While retired faculty may be hired on a temporary basis to cover particular teaching needs, the University makes no promises, explicit or implicit, that after retirement a faculty member will be given the opportunity to return to employment at Brown University on a temporary basis.
Tax Withholding and Other Deductions.
The University is entitled to withhold and pay over to the proper taxing authorities all applicable deductions including FICA-Social Security Tax, FICA-Medicare Tax, federal and state taxes from any amounts due under any agreement. The University is entitled to deduct from any amounts due under any agreement the amount of any outstanding loans or other debts that the faculty member may have with the University.