Phased Retirement
Phased Retirement Program for Faculty
The Phased Retirement Program provides an opportunity for eligible full-time, tenured members of the faculty to reduce their teaching responsibilities in preparation for full retirement from the College, along with a proportionate reduction in salary. The College reserves the right to determine, from year to year, how many members of the faculty can participate in this program, both on an annual basis and in the aggregate, as well as to make decisions about who is eligible based on the needs of programs or the College in general.
Eligibility
Full-time, tenured members of the Faculty who are at least age 59-1/2 and have at least fifteen consecutive years of full-time service at Centre College when the Phased Retirement period begins are eligible to participate. In order to be considered for this program, an eligible member of the faculty must inform the Vice President for Academic Affairs by May 1 of the year preceding what would become the last academic year of full-time service. If the request is approved by the Vice President for Academic Affairs, the member of the faculty will be given an irrevocable Phased Retirement Agreement, which must be finalized no later than June 15 of the year preceding the last academic year of full-time service. The last year of full-time service cannot be a year in which a sabbatical or leave of absence is taken.
Phased Retirement Period
The period of Phased Retirement is no more than three consecutive academic years. Ordinarily, the period will be three years, but the Vice President for Academic Affairs has the discretion to approve a shorter period of one or two years. The period will be fixed at the time of entering into the Agreement. Members of the faculty under a Phased Retirement Agreement are not eligible for sabbatical leaves.
Salary and Teaching Load
While participating in the Phased Retirement Program, salary will be based on the percentage of teaching load undertaken in each of the academic years in the Phased Retirement Period. For example, a member of the faculty teaching a one-half load would receive a salary that is one-half of that member’s full-time salary. Members of the faculty under a Phased Retirement Agreement are eligible for pro-rated annual salary increases based on the average increment given to all faculty in their respective ranks.
The teaching load of the member of the faculty will be reduced to three courses (one-half) in the first year, and to two courses (one-third) each in the second and third years, with a corresponding reduction in salary. The scheduling of the courses will be based on the needs of the College and the particular programs, which means the courses will likely be distributed throughout the academic year. The service and scholarship obligations of the member of the faculty would be commensurate with the teaching load.
Fringe Benefits
Health Insurance – Members of the faculty participating in the Phased Retirement Program continue to be eligible for health insurance coverage per standard College policies, and pay the same premiums offered to active, full-time employees. Upon retirement, the member of the faculty (providing they have been in the health insurance plan for at least five years) may elect to continue their health insurance coverage as a retiree until they become Medicare eligible. However, the full cost of the plan is borne by the retiree. The benefits of COBRA are offered at this time and run concurrently with this extension of retiree health coverage.
Retirement Plan Contributions – The College will make its normal retirement contribution on behalf of the member of the faculty, based on actual (reduced) base monthly salary received during the Phased Retirement period. Phased Retirement participants may make elective, pre-tax contributions to the Retirement Plan through salary reduction.
Faculty Status
Participants in this Phased Retirement Program will continue to be active members of the faculty, with a full vote in faculty meetings. However, members of the faculty under a Phased Retirement Agreement will not be eligible to serve as a division chair or hold other academic positions that require full-time service, such as endowed professorships or chairs. It is expected that the member of the faculty will be able to remain in his or her office during the first year of phased retirement, but thereafter will most likely be relocated to a shared office. The Vice President for Academic Affairs will retain discretion to make decisions about the faculty member’s office space and access to labs and other resources based on the needs of the programs and the College in general.
Full Retirement
A member of the faculty under a Phased Retirement Agreement must fully retire from the College at the end of the Phased Retirement period. The College will rely on this planning for its academic staffing, including the employment of additional faculty.
More Information
Full-time faculty interested in additional information regarding the Phased Retirement Program should contact the Office of the Vice President of Academic Affairs. Information about the benefits available to retired College employees is available through the Human Resources office.
This Phased Retirement Program may be amended, modified, or terminated by the College at any time. Such amendment, modification, or termination will not affect faculty members who have already signed a Phased Retirement Agreement.