College Policy Number/Title:

• 63.04     Compensation

Introduction

The phased retirement program is designed to provide a transition period between full-time work and retirement for faculty or staff with unique knowledge and competencies that the institution wishes to retain and transfer to a new faculty or staff person.

The person eligible for retirement moves to 50% of full-time salary. The person in phased retirement will develop a work plan for or define the transition period, responding to the specific needs of a department.

Purposes

1. Workforce Planning: To assist the college in planning for projected faculty and staff retirement while maintaining a high level of expertise.
2. Knowledge and Competencies: To provide continuity within academic and other departments by retaining important knowledge and competencies of long-term faculty and staff.
3. Mentoring and Training: To provide mentoring and training of new faculty and staff by experienced faculty and staff over a transition period.

Eligibility Criteria

Full-time faculty and staff who have worked at the college full-time for at least five years and are eligible to retire under one of the college’s retirement programs (see Procedure 63.07.11) may apply for the phased retirement program based on the following criteria:

1. The faculty or staff member has unique and unduplicated knowledge, competencies and leadership qualities.
2. The proposed work plan incorporates mentoring and training of new faculty and/or staff.
3. A phased retirement option is practicable and workable for the position and work plan.
4. The opportunity for phased retirement is not guaranteed but is dependent upon the needs and resources of the institution.

Work Plan

A work plan must be submitted detailing how the teaching and other job responsibilities will be structured for the 50% of full-time work. The details are negotiated among the employee, the supervisor and the department head. For faculty, the work plan must incorporate all facets of normal, full-time faculty work loads including teaching, curriculum development, office hours, committee work, etc. Negotiations must take place and be incorporated into the application submitted by October 1.

Application Process

Application forms are available through the office of human resources. The application form and a proposed work plan are due to the area vice president by October 1 of the year prior to the beginning of the next fiscal year the employee plans to retire and will be considered on a case by case basis depending on college and departmental needs, budgets, and other planning processes. Applicants will be notified by the end of January of the status of their requests.

Note for Pilot Program for first year:  During the first year of implementation, a spring date for applications will be announced for pilot participants in Fiscal Year 2003.

Terms and Conditions

Agreements for phased retirement, if approved, will be made between the employee and the college for a one-year contract period, effective on the first date of the eligible contract date for the next fiscal year. There may be some circumstances in which renewal for a second and/or third year may be considered but typically the agreement will be for the one year. At the end of the approved contract period the employee agrees to complete the retirement process.

During phased retirement, the salary rate will remain the same but will be prorated for the percent of full-time (50%). Benefits will remain in place with the following exceptions: (1) benefits tied to salary will be tied to the phased retirement salary including any retirement contributions; and (2) retirement benefits will depend on arrangements made by employees with retirement plans (see next section).

Participants are subject to the regular performance appraisal system and are eligible for merit pay under that system, which would be prorated for the percent of full-time work load.

Retirement Options and Coordination

It is entirely the responsibility of the employee to coordinate their retirement plans with the specific retirement plan, Maryland State Retirement and Pension Systems (MSRPS) or one of the Optional Retirement Programs (ORP). The following options may be available: (1) Delay retirement and the receipt of retirement benefits until the end of the phased retirement period; (2) Initiate partial retirement benefits; (3) Receive full retirement benefits subject to any income limitations of the specific retirement program.

ADEA Release

The program is entirely voluntary on the part of participants and faculty and staff participants will be asked to sign a release under the Age Discrimination in Employment Act (ADEA) confirming that their participation is voluntary.