Faculty Phased Retirement Plan Summary

Owned by Sonia Richardson
Last updated: Aug 11, 2021


2021–2022 Academic Year

INTRODUCTION AND PURPOSE

Bethel University is again offering the Faculty Phased Retirement Plan (also referred to herein as the “Plan”) to allow eligible faculty members the opportunity to elect a phased retirement if such a decision, in their own judgment, is in their best interest. The Plan will allow eligible faculty to transition to retirement in a way that is gradual and provides a standard approach to financial incentives.

The Faculty Phased Retirement Plan is also beneficial to the University. It allows for programs and departments to plan for the retirement of long-serving faculty. It also provides the opportunity for a faculty member who elects the Faculty Phased Retirement Plan to be available to mentor a new faculty member who may be hired in the department or program. The Faculty Phased Retirement Plan also has long-term financial benefits to the University as senior faculty who retire are generally at higher ranks than new faculty members.

The Plan, offered for the 2021–2022 academic year, is available to faculty with tenure, nontenure continuing status, or clinical faculty status on the date of their election to participate in the Plan and who are at least the age of 62 with ten (10) or more years of continuous faculty service. The Plan allows participating faculty to move gradually toward retirement by phasing down their teaching load over a period of up to three (3) years.

SALARY AND LOAD

At the start of phased retirement, eligible faculty would reduce their load to between 3.00–13.60 Teaching Equivalency Units (TEUs) per year for up to three (3) years. The number of TEUs taught may vary during the three (3) years of the program. The University agrees to provide up to a 13.60 TEU load per year unless the faculty member requests to teach less than 13.60 TEUs in a given year. A faculty member must teach a minimum of 3.00 TEUs per year during phased retirement.

Faculty are eligible for raises and promotion during the phased retirement period. Faculty may teach beyond 13.60 TEUs per year at the retiree rate.

The faculty member’s load during phased retirement may include TEUs for non-instructional release for responsibilities such as program director or department chair. Under extenuating circumstances, and at the request of the University, the Provost may approve the faculty member to exceed 13.60 TEUs in a given year of phased retirement at the phased retirement rate.

Faculty will be paid per TEU. Actual pay per TEU will be determined by dividing the faculty member’s base salary by 23.80 and multiplying that amount by 80%. This rate is effective for up to three (3) years of a phased retirement period unless the faculty member is promoted or a raise is given to the faculty as whole.

Example

For a faculty member who has a base salary of $77,000 when she or he elects to enter into the Faculty Phased Retirement Plan, the phased retirement salary per TEU would be calculated as follows:

$77,000/23.80 = $3,235.29 per TEU for full-time faculty base salary prior to phased retirement
$3,235.29 x .80 = $2,588.23 per TEU at phased retirement rate

If this faculty member teaches 13.60 TEUs in one of their years of phased retirement the pay would be calculated as follows:

13.60 TEUs x $2,588.23 = $35,199.93

ELIGIBILITY

An eligible faculty member at the University may elect this program if he or she meets all of the following criteria:

  • is at least the age of 62 as of August 1 of the calendar year in which he or she commences the Plan;
  • is a faculty member with tenure, nontenure continuing status, or clinical faculty status in good standing on the date faculty member elects the Plan by signing an Election Agreement with the University;
  • has ten (10) years of continuous service2 in a faculty position by August 1 of the year in which phased retirement commences;
  • commits to teach the assigned teaching load during the phased retirement period; and
  • agrees to relinquish his or her tenure, nontenure continuing status, or clinical faculty status at retirement and to retire by the end of the phased retirement period.

Faculty members electing the Faculty Phased Retirement Plan may not participate in any other future early or phased retirement incentive arrangement or Voluntary Separation Incentive Program (VSIP) offered by the University.

IRREVOCABLE AGREEMENT

Electing the Faculty Phased Retirement Plan is a final decision that may not be rescinded once it becomes effective. A faculty member’s election becomes effective fifteen (15) calendar days after it is signed by the faculty member; it may, however, be rescinded by written notice given no later than fifteen (15) calendar days after signature, as set forth in the Faculty Phased Retirement Plan Election Agreement (Agreement). With the approval of the Provost, the faculty member may request to end her or his phased retirement period earlier than the date originally stated by the faculty member at the time he or she chose to enter phased retirement.

Notwithstanding the foregoing, in the event of a hardship situation, a faculty member who has elected the Faculty Phased Retirement Plan may petition the Provost seeking to be released from the Plan, as long as the petition is received prior to the commencement of the first year of the faculty member’s Faculty Phased Retirement Plan participation. Granting of the petition for release from the Plan is at the sole discretion of the Provost whose decision shall be final.

WAIVER

A material part of the Faculty Phased Retirement Plan Election Agreement is a waiver of claims based on or arising from the faculty member’s employment with the University or the termination of that employment against the University. At the time a faculty member elects to enter phased retirement, the faculty member must sign a waiver of claims against the University related to service at the University prior to phased retirement. The waiver is in exchange for the faculty member’s participation in the Plan and is intended to reduce the possibility of litigation through full disclosure and mutual understanding. The faculty member should consider the waiver carefully and consult with an attorney before signing the Agreement.

A second waiver will be requested from the faculty member at the date of her or his full retirement, for which the faculty member will receive an additional payment of One Thousand Five Hundred Dollars ($1,500). In this second waiver, the faculty member agrees to waive claims against the University related to service at the University during the period of phased retirement. This second waiver will be similar to the initial waiver contained in the Agreement. A sample will be attached to the Agreement for the faculty member’s information.

RESPONSIBILITIES

Faculty are not expected to continue student advising or faculty committee service during the phased retirement.

SABBATICAL LEAVES

Faculty may not take a sabbatical leave during phased retirement. The first year of phased retirement may be the year following a sabbatical leave.

OFFICE AND RESEARCH SPACE

Continued use of office, laboratory, and/or studio space during the phased retirement period will be determined by the Associate Provost consistent with University guidelines for space allocation and in consideration of the needs of the department and University. Such arrangements will be confirmed in writing at the time of the retirement agreement.

BENEFITS DURING PHASED RETIREMENT

While participating in the Faculty Phased Retirement Plan, faculty members are eligible for the same benefits as all benefits-eligible faculty at the employee rate and/or based on the relevant annual salary during the period of phased retirement, depending on the benefit type. These benefits include, but are not limited to, health and dental insurance, life insurance, disability insurance, tuition benefit, etc. The following explanation about University contributions to the Defined Contribution Plan is noted below.

Bethel University Retirement Plans

While participating in the Faculty Phased Retirement Plan, if the faculty member maintains a load of 13.60 TEUs during the given academic year (August–July) the faculty member will continue to be eligible to receive University contributions to the Bethel Defined Contribution Plan. University contributions will be determined in the same manner as for faculty not participating in the Plan and based on the actual salary paid in the year. Faculty are eligible for distributions from their Bethel Defined Contribution Plan during their participation in the Plan so long as they are at least age 62, the same as those not in the Plan. Those with benefits in the Defined Benefit (Pension) Plan are also eligible for distributions from it during their participation in the Plan beginning at age 62, the same as those not in the Plan.

BENEFITS AFTER RETIREMENT

To obtain information about benefits available after retirement, please contact the Office of People and Culture at people-culture@bethel.edu or 651.638.6119.

FINANCIAL PLANNING SUPPORT

The University encourages faculty considering participation in the Plan to consult a financial planner. For general questions on retirement benefits, faculty may also contact the Office of People and Culture at people-culture@bethel.edu or 651.638.6119.

PRIVILEGES FOR RETIRED FACULTY

Faculty who participate in the Plan will be eligible for the same privileges once they retire as are generally available to retired faculty in accordance with University policies, such as an invitation to Festival of Christmas, access to Bethel libraries, discounts to Bethel ticketed events in Benson Great Hall, and entrance to on-campus athletic events.

ELIGIBILITY FOR EMERITUS STATUS

Eligible faculty members who are entering full retirement and are in good standing with the University may be considered for emeritus status.

POST-RETIREMENT EMPLOYMENT

Except for research appointments that are funded by an external source, employment with the University will terminate completely as of the retirement date. Although employment with the University will end as of your Retirement Date, you will be allowed to pursue future adjunct or staff employment opportunities with the University, but there is no guarantee of future employment.

TEACHING AND RESEARCH ACTIVITIES IN RETIREMENT

Faculty may consult with their Associate Provost, Dean, or Program Director or Department Chair regarding opportunities for continued activities in retirement.

GRADUATE ADVISING

During the phased retirement period, faculty may continue to advise their current graduate students to bring them to completion of their degree. They may serve as a master’s thesis advisor or dissertation advisor for current students and as a thesis committee member for committees that have been constituted before their phased retirement. These arrangements must be approved by the Associate Provost and Dean. Payment will be established at the rate for all thesis advisors and committee members.

FOR MORE INFORMATION

For specific information about the Plan, you may contact the Provost at r-rylaarsdam@bethel.edu or 651.638.6371.

1 Bethel University phased retirement documents were created using documents from Rice University. (http://people.rice.edu/FPRP.aspx)
2 "Continuous service" means time of continuous benefits-eligible service as a faculty member at Bethel, including any University approved leaves such as sabbaticals or interim professional development release.


Office of the Provost
Updated August 8, 2021