Faculty Phased Retirement Plan Frequently Asked Questions
- Sonia Richardson
2021–2022 Academic Year
To the extent that there is any inadvertent inconsistency between these Frequently Asked Questions (FAQs), the letter and agreements you received, and the Plan document, the terms of the Plan document shall control.
PURPOSE
1. Why is the University offering the Faculty Phased Retirement Plan (the "Plan")?
Bethel is again offering 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 at higher ranks than new faculty members.
GENERAL TERMS
2. What is the Plan?
The Plan is a completely voluntary phased retirement plan for eligible faculty members.
In order to participate in the Plan as offered by the University, during the 2021–2022 academic year, an eligible faculty member with tenure, nontenure continuing status, or clinical faculty status must submit a signed Faculty Phased Retirement Plan Election Agreement (the "Agreement") to the Office of the Provost by 5 p.m. on Friday, October 15, 2021 if entered into during the fall semester of the 2021–2022 academic year; or by 5 p.m. on Tuesday, March 15, 2022 if entered into during the spring semester of said academic year (you may return the Agreement sooner) and not revoke your acceptance of such agreement within fifteen (15) days of signing it. Pursuant to the Agreement, you will:
(1) select a retirement date of either (i) July 31, 2023, (ii) July 31, 2024, or (iii) July 31, 2025 on which you irrevocably commit to relinquish your tenure, nontenure continuing status, or clinical faculty status and to retire (your "Retirement Date");
(2) agree to teach your assigned teaching load for each academic year until your Retirement Date;
(3) enter into agreement with the University upon acceptance into the Plan; and
(4) agree not to receive any benefits under any other early or phased retirement arrangement or Voluntary Separation Incentive Program (VSIP) provided by the University.
3. What is the maximum load that I can teach during phased retirement?
13.60 TEUs is the maximum load per year during phased retirement.
4. Can I teach more than 13.60 TEUs per year during phased retirement?
Yes. Additional teaching will be paid at the retiree rate. 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.
5. What is the minimum number of TEUs I must teach in a given year of phased retirement?
3.00 TEUs is the minimum load per year during phased retirement.
6. Can my load during phased retirement include teaching and non-instructional assignments (e.g., program director or department chair)?
Yes.
7. What will my salary be while I am still employed prior to my Retirement Date? Am I still eligible for salary increases?
Your salary for the 2022–2023 academic year will be set at 80% of your 2022–2023 base salary, adjusted for teaching load. You are eligible for raises and promotion during the phased retirement period. You may teach beyond 13.60 TEUs per year at the retiree 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 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
8. When would I terminate my employment under the Plan - that is, who selects my Retirement Date?
You select your own retirement date of either (i) July 31, 2023, (ii) July 31, 2024, or (iii) July 31, 2025. Pursuant to the Agreement, you must irrevocably commit to retire on the Retirement Date. Please contact your Associate Provost, Dean, and/or Program Director or Department Chair to discuss your situation.
9. What if I need to end my phased retirement earlier than I stated in the Agreement I signed?
Under extenuating circumstances (e.g., health concerns related to the faculty or a family member) with the approval of the Provost, the faculty member may request to end their phased retirement period earlier than the date originally stated by the faculty member at the time he or she chose to enter phased retirement.
10. When do I need to notify my Department Chair or Program Director and/or Dean of the load that I would like in each year of my phased retirement?
You should discuss the number of TEUs you would like for the following year with your Department Chair or Program Director and/or Dean during the normal cycle (i.e., early fall) when loads for all faculty are being constructed for the following academic year.
11. If I choose to enter phased retirement, will my department be able to hire my replacement before my phased retirement ends?
Yes, if the position is approved to be replaced, it is possible that the department or program could hire someone before you have finished your phased retirement. If that is the case, you and the new faculty member will both serve in the department or program until your phased retirement is completed.
12. What happens to my tenure, nontenure continuing status, or clinical faculty status with the University? Will I be eligible for emeritus status?
You retain your tenure, nontenure continuing status, or clinical faculty status until the Retirement Date that you have selected, but by entering into the Agreement, you irrevocably commit to relinquish your tenure, nontenure continuing status, or clinical faculty status on your Retirement Date.
Criteria for eligibility for emeritus status are the same for all faculty, including those who choose to participate in the Faculty Phased Retirement Plan.
13. What happens if my tenure, nontenure continuing status, or clinical faculty status is due to expire either: (1) before August 1 of the first Plan Year of my phased retirement; or (2) any time after I commence phased retirement, but I have not yet reached my Plan Retirement Date? Must I re-apply for tenure, nontenure continuing status, or clinical faculty status?
No. As long as you have tenure, nontenure continuing status, or clinical faculty status on the date you elect the Plan by signing an Election Agreement with the University, you will not need to re-apply for tenure, nontenure continuing status, or clinical faculty status in the future, even if your tenure, nontenure continuing status, or clinical faculty status would normally expire. Your status will continue unchanged until your Retirement Date.
14. Can I teach summer school in the College of Arts & Sciences (CAS)?
Yes. If faculty teach in CAS summer school, it is separate from the phased retirement plan and will be paid at the CAS summer school rate.
15. Prior to my Retirement Date, am I eligible for grant-related summer salary?
Yes. Summer salary charged to sponsored projects will be based on academic year salary and must be commensurate with effort worked on the sponsored project, e.g., summer salary can be charged at 100 percent (based on a full FTE academic year salary rate) if the faculty member has 100 percent effort on the sponsored project for the period charged.
16. If I want to be considered for promotion during the phased retirement plan, what is the process?
The process for promotion continues to apply to faculty in the Plan.
17. May I take a sabbatical while participating in the Plan?
No.
18. Under the Plan, am I still eligible for conference travel funds?
Yes, participants in the Plan are subject to the same rules for travel funds to conferences as similarly situated faculty members with tenure, nontenure continuing status, or clinical faculty status who do not participate in the Plan.
19. Do I still have obligatory University service commitments (i.e., to serve on University committees)?
No.
20. Can I just retire and not participate in the Plan?
Yes. For any retirement discussion either in or out of the Plan, please contact your Associate Provost, Dean, and/or Program Director or Department Chair to discuss your situation.
21. If I choose to participate in the Plan, am I eligible to participate in other retirement incentive plans if they are later offered prior to my Retirement Date?
No. By entering into an Agreement, you agree not to receive any benefits under any other early or phased retirement arrangement or Voluntary Separation Incentive Program (VSIP) offered by the University.
22. Is the plan only for faculty who want to elect phased retirement in the 2021–2022 academic year? What about future years?
The University Board of Trustees may decide not to offer the plan or alter the Plan at any time in the future. The examples we have provided relate to the 2021–2022 election year. The University anticipates the Plan will be offered in future years, but there is no guarantee.
23. If the Plan is terminated or Plan terms are amended in the future, will I be affected?
No. You will not be affected if you have entered into a final written Agreement with the University; in that case, the terms of your Agreement for phased retirement and benefits payable to you will not change.
ELIGIBILITY
24. How do I know if I can participate in the Plan effective offered for the 2021–2022 academic year?
To be eligible to participate in the Plan, a faculty member must:
a. be at least the age of 62 as of August 1 of the calendar year in which he or she commences the Plan;
b. be a faculty member with tenure, nontenure continuing status, or clinical faculty status in good standing;
c. have completed ten (10) years of continuous service2 in a faculty position by August 1 of the year in which phased retirement commences;
d. commit to teach the assigned teaching load during the phased retirement period; and
e. agree 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.
PARTICIPATION
25. Can I elect to participate in the Plan at any time?
No. The “window” to elect to participate in the plan is limited. The fall semester window to elect the plan is August 15 through October 15; the spring semester window is January 15 through March 15. If, however, the last day of the acceptance window is a Saturday, Sunday, or legal holiday, the period continues to run until the next regular business day. In order to participate in the Plan for the 2021–2022 academic year, you must sign and submit an Agreement to the Office of the Provost no later than 5 p.m. on Friday, October 15, 2021 if entered into during the fall semester of the 2021–2022 academic year; or by 5 p.m. on Tuesday, March 15, 2022 if entered into during the spring semester of said academic year. (See Q&A 2.)
26. Can my Associate Provost, Dean, and/or Program Director or Department Chair require me to decide before the deadline?
No, you are not required to officially decide until the deadline. However, we encourage you to discuss considerations around the Plan with your Associate Provost, Dean, and/or Program Director or Department Chair so there are no last-minute surprises for class planning and teaching needs.
27. If I do not elect to participate in the Plan will my decision affect any future personnel actions?
No. The Plan is purely voluntary. Your decision to participate or not to participate will have absolutely no effect on any future employment-related decisions (such as promotion). Your decision on whether to participate should be based on your own personal needs and assumptions and on any advice that you may receive from your financial and/or legal advisors.
AGREEMENT
28. What general terms will the Agreement contain?
As stated in Q&A 2, an Agreement will generally consist of:
(1) your selection of a Retirement Date of July 31, 2023, July 31, 2024, or July 31, 2025;
(2) your irrevocable commitment to relinquish your tenure, nontenure continuing status, or clinical faculty status and to retire on your chosen Retirement Date;
(3) your commitment to teach your assigned teaching load for each academic year until your Retirement Date;
(4) waiver of claims upon acceptance into the Plan;
(5) a second waiver of claims effective on your Retirement Date; [Note: the second waiver is needed since under applicable law, the initial waiver cannot cover the period between the start of your phased retirement and your chosen Retirement Date.]
(6) your agreement not to receive any benefits under any other early or phased retirement incentive arrangement or Voluntary Separation Incentive Program (VSIP) provided by the University.
29. Can I change my mind after I enter into an Agreement?
Yes, but only for a limited time. After signing the Agreement, you will have fifteen (15) calendar days to rescind your decision if you choose to do so. In other words, your decision to participate in the Plan will NOT become effective or enforceable until after the fifteen-day period has expired without your rescission of the Agreement. If you do decide to rescind your decision, please notify the Office of the Provost in writing no later than the fifteenth (15th) calendar day after the signature date of your agreement.
Also, 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.
30. What is the purpose of the two waivers?
With the first waiver the faculty member agrees to waive claims against the University related to years of service prior to the phased retirement period. With the second waiver, the faculty member agrees to waive claims against the University related to years of service during the phased retirement period.
31. The Agreement seems to be an important document. Shouldn't I seek legal advice to be sure I understand what I am signing?
The University recommends that you review all the material given to you concerning the Plan, especially the Agreement. Additionally, federal law requires that we advise you to consult with an attorney prior to signing the Agreement.
OTHER ISSUES INCLUDING EMPLOYEE BENEFITS
32. When can I begin distributions under my Bethel retirement plans?
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.
33. Prior to my Retirement Date, will Bethel's contribution to the University retirement plan continue?
The answer depends on your teaching load. For each year you have a load of 13.60 TEUs University contributions to the Bethel Defined Contribution Plan will be made based upon your actual salary.
34. Will participating in the Plan affect my eligibility for employee benefits, including health, dental, disability and life insurance, and tuition benefit, prior to my Retirement Date?
No. 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, and tuition benefit.
35. Will participating in the Plan affect my access to any University facilities or activities after I retire pursuant to the Plan?
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.
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.
36. When may I begin my Social Security benefits?
Faculty may apply for Social Security retirement benefits while still employed by the University, including when participating in the Faculty Phased Retirement Plan by visiting http://socialsecurity.gov/applyforbenefits. Faculty members are advised to apply for benefits approximately three (3) months before the date on which they wish to begin receiving benefits. For the Social Security benefit calculator, visit www.socialsecurity.gov/estimator.
POST-RETIREMENT EMPLOYMENT
37. After my Retirement Date, will I be allowed to pursue employment at the University?
Yes. Although your 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.
38. With whom can I speak if I have any questions?
The University wants you to make your decision based on complete and accurate information. If you have any questions, please contact your Associate Provost or the Provost.
1 These FAQs as well as other 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