Faculty Phased Retirement Plan

2021–2022 Academic Year

I. PURPOSE

1.1 The Bethel University Faculty Phased Retirement Plan for full-time faculty with tenure, nontenure continuing status, or clinical faculty status is designed to provide phased retirement benefits to eligible faculty members.

II. DEFINITIONS

2.1 "Participant" shall mean a member of the faculty with tenure, nontenure continuing status, or clinical faculty status who has met the requirements for participation set forth in Section 5.1.

2.2 "Agreement" shall mean a written Faculty Phased Retirement Plan Election Agreement between an eligible faculty member with tenure, nontenure continuing status, or clinical faculty status and Bethel University as described in Section 6.1.

2.3 "Start Date" shall mean the August 1 date on which the Faculty Member begins a reduced workload of at least 3.00 Teaching Equivalency Units (TEUs), not to exceed 13.60 TEUs, pursuant to an Agreement under Article VI.

2.4 "Plan" shall mean this Faculty Phased Retirement Plan for eligible faculty with tenure, nontenure continuing status, or clinical faculty status.

2.5 "Plan Year" shall mean the period of twelve (12) months commencing August 1 annually.

2.6 "Salary" shall mean the Participant's institutional annual base salary.

2.7 "Bethel'' shall mean Bethel University.

2.8 "Years of Faculty Employment" shall mean each full twelve-month period during which the individual continues to hold an appointment as an eligible faculty member or is absent from employment as a faculty member with Bethel pursuant to an approved leave of absence, commencing on the date that a faculty member commences a faculty appointment at Bethel, or anniversary of such date, and ending on the Start Date.

III. ADMINISTRATION

3.1 The Plan shall be administered by Bethel. As part of its administrative rights and duties, Bethel shall make rules and decisions which shall be final and binding upon every person regarding all aspects of the Plan, including, but not limited to, as follows: eligibility to participate; loss of eligibility to participate; requirements to submit waivers of employment claims, or other forms, as a condition of participation; entitlement to and calculation of benefits set forth hereunder; teaching responsibilities, including transition of responsibilities, prior to full retirement, including during any period of an Agreement; and resolution of disputes, claims, or questions. Changes to the offered terms, as provided under the Plan, of an Agreement under Article VI may be made by the Provost on an individual basis for special circumstances, where the Provost determines that such changes serve the best interests of Bethel and the individual faculty member.

3.2 Whenever Bethel under the terms of the Plan is permitted or required to do or perform any act, make any rule, or decide any issue, the same may be done by any duly authorized Officer of Bethel.

3.3 Any disagreement or dispute by any person claiming a benefit under the Plan regarding any aspect of the Plan or its implementation or administration shall be presented in writing to Bethel, the Office of the Provost, and Bethel’s determination shall be final and binding.

IV. PLAN EFFECTIVE DATE AND ACCEPTANCE PERIOD

4.1 The Plan is offered to eligible faculty during the 2021–2022 academic year as follows: From August 15 through October 15, 2021; and from January 15 through March 15, 2022. Eligible faculty who wish to participate in the Plan must enter into a written Agreement accepting the Plan within the foregoing time periods, including the last day of the period. If, however, the last day of the acceptance period is a Saturday, Sunday, or legal holiday, the period continues to run until the next regular business day.

4.2 Bethel may offer the Plan annually to eligible faculty members, during the time periods of August 15 through October 15 and January 15 through March 15 of each academic year. Offering the Plan in any year is not, however, guaranteed. The Bethel Board of Trustees may discontinue the Plan at any time in its sole discretion. If the Plan is discontinued, such discontinuance will not affect the faculty members who have previously entered into a final signed Agreement with Bethel.

V. ELIGIBILITY

5.1 An employee of Bethel who is an active faculty member with tenure, nontenure continuing status, or clinical faculty status in good standing on the date faculty member elects the Plan shall be eligible to become a Participant if he or she (a) has or will have completed, on the August 1 in the year of his or her Start Date, at least ten (10) continuous Years of Faculty Employment with Bethel in an eligible position, (b) enters into an Agreement described under Article VI and does not timely revoke his/her acceptance of such Agreement, (c) pursuant to the Agreement, gives an irrevocable written commitment during the time periods described in the proceeding Article IV of this Plan in the year the faculty member elects to participate in the Plan (in a form prescribed by Bethel) to relinquish the faculty member's tenure or nontenure continuing status and to retire after the phased retirement period, and does so retire, (d) will be at least 62 years of age on the August 1 of the year of the Start Date, and (e) continues to be in active status during the period between the written commitment and the Start Date.

5.2 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.

VI. PHASED RETIREMENT AGREEMENT

6.1 Upon the request of an active faculty member with tenure, nontenure continuing status, or clinical faculty status who is eligible to become a Participant, Bethel and the faculty member shall enter into an Agreement under this Plan if Bethel determines, in its sole discretion, that the faculty member is eligible to participate. Under an Agreement, the Participant shall work at least 3.00 TEUs, not to exceed 13.60 TEUs, annually for a period of one (1) to three (3) years starting at the beginning of a Plan Year (to be selected by the faculty member) at eighty percent (80%) of base salary. Salary is adjusted for teaching load, with continuing participation in Bethel’s regular employee benefit plans based on the relevant plan terms during the period of phased retirement. Teaching load shall not exceed 13.60 TEUs each year as part of the Faculty Phased Retirement Plan; faculty may teach beyond 13.60 TEUs per year at the retiree rate. Notice of intent to elect an Agreement shall be given during the time periods of August 15 through October 15 or January 15 through March 15 in the academic year the faculty member elects to participate in the Plan. The Agreement shall contain (a) an irrevocable written commitment (in a form prescribed by Bethel) to relinquish the faculty member's tenure or nontenure continuing status and to retire following the phased retirement period; (b) a commitment to teach the assigned teaching load; (c) waiver of claims by the faculty member as part of the Agreement as well as a second waiver of claims at the date of full retirement for which you will receive a separate payment of One Thousand Five Hundred Dollars ($1,500); (d) an agreement not to receive any benefits under any other early retirement or phased retirement agreement or Voluntary Separation Incentive Program (VSIP) offered by Bethel; and (e) an acknowledgement that full retirement before age 65 may result in a health insurance gap in coverage that will be the sole responsibility of faculty member.

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

6.3 During the period of phased retirement, the Faculty Member shall retain the full voting privileges of a full-time faculty member.

6.4 Faculty are eligible for raises and promotion during the phased retirement period.

6.5 Faculty are expected to focus on their teaching responsibilities. They are not required to serve as advisors or participate in other departmental, program, or University-wide responsibilities (e.g., faculty meetings, committee service, new student recruitment, department meetings).

VII. AMENDMENT AND TERMINATION

7.1 Bethel shall have the right to amend or terminate the Plan at any time, in whole or in part, to the extent that it may deem advisable in its sole discretion, including an amendment or a termination that Bethel determines is necessary to comply with any federal or state law, regulation, or legal interpretation thereof. A Plan amendment or termination shall apply to all pending Agreements between Bethel and eligible faculty that have not become final and irrevocable prior to the effective date of the amendment or termination.

7.2 Any Plan amendment or termination shall not be applied in any manner that will materially affect the Plan terms or plan benefits due to a faculty member who has previously entered into a final Agreement with Bethel. Bethel shall acknowledge in writing that the terms and benefits of the Plan prior to any amendment or termination will continue to apply with respect to such faculty member.

7.3 Bethel and the faculty member may mutually agree to accelerate the faculty member’s retirement date, if requested by the faculty member.

VIII. INTERPRETATION AND OTHER CONDITIONS

8.1 The provisions of this Plan shall be construed and enforced according to the laws of the State of Minnesota.

8.2 Participation in this Plan shall preclude participation in any other early or phased retirement incentive arrangement or Voluntary Separation Incentive Program (VSIP) offered by Bethel.

8.3 Any obligations arising under the Plan shall be paid from the general assets of Bethel, and nothing contained in the Plan shall be deemed to create an obligation of Bethel to set aside or earmark funds. This Plan is unfunded.

8.4 This Plan is intended to constitute a voluntary retirement incentive plan within the meaning of 29 U.S.C. §623(m).

8.5 Bethel shall comply with applicable federal and state tax laws, including withholding appropriate federal and state taxes with respect to the payment of salary and benefits under the Plan.

8.6 Payments and benefits under this Plan are non-assignable and non-transferable. Bethel shall not be liable for the debts, contracts, or obligations of any Participant or his or her beneficiaries, and the rights to awards under the Plan may not be taken in execution, by attachment or garnishment, or by any other legal or equitable proceeding while in the hands of Bethel; nor shall any Participant or his or her beneficiaries have any right to assign, pledge, or transfer any benefits or payments hereunder. Notwithstanding the foregoing, Bethel shall comply with a domestic relations order, issued by a court of competent jurisdiction, with respect to amounts due to a Participant after he or she has entered into an Agreement.

¹ Bethel University phased retirement documents were created using documents from Rice University. (http://people.rice.edu/FPRP.aspx)

Office of the Provost
Updated August 8, 2021