Purdue University Executive Memoranda Master Listing
OFFICE OF THE PRESIDENT
EXECUTIVE MEMORANDUM No. B-59
December 19, 1978
Re: Voluntary Early Partial Retirement Program
EFFECTIVE DATE: 1 July 1979
At its meeting on 3 November 1978, the University Trustees approved a voluntary early partial retirement program which will permit members of the faculty, administrative and professional staffs to retire on a phase-in basis.
The impetus for adoption of an early retirement program comes primarily from two sources: first, there has been a demonstrated widespread interest among University faculty and administrative and professional staff members in retiring prior to the normal retirement age; and second, over the next decade an increasing proportion of faculty, administrative and professional staff vacancies will occur as a result of retirements. Hence, the University's ability to renew itself through a steady influx of young scholars and administrators will increasingly depend upon retirements. A program to permit early retirement would seem to facilitate this renewal process.
Members of the permanent full-time faculty and full-time administrative and professional staffs covered by the University TIAA-CREF retirement System are eligible for participation in the program outlined below:
- An individual in an eligible class who has been on the University staff for 20 or more years, the last 10 of which have been on a continuous basis, and who is age 60 or more, may be employed on a reduced-time basis, with an appropriate reduction in pay. Sabbatical and faculty exchange leaves of absence shall be counted as years of service. Leaves of absence for other reasons shall not count as years of service; they will not constitute a break in continuous service, however. The reduced employment under this policy will normally be 50%. Teaching, administrative, and research assignments shall be negotiated for each individual by the cognizant department head, dean, or director. An appropriate salary rate shall be approved by the President or his designee.
- Because of varying circumstances, participation in this program cannot be guaranteed. Therefore, reduced employment under this program requires mutual approval of the University administration and the staff member. Reduced employment may be arranged, beginning with the fiscal year in which the individual attains age 60, regardless of whether the mandatory retirement age is 65 or 70, or in any subsequent year prior to the mandatory retirement age. A person who elects to begin partial early retirement more than five years prior to mandatory retirement age, agrees to accept full retirement no later than five (5) years after beginning early partial retirement. Once arranged, the percentage of time employed may not be increased in future years; it may, however, be decreased by mutual agreement.
- During the period of reduced employment (age 60 to 65 or age 66 for those employed prior to 1 July 1948), the University shall continue its regular contribution to the TIAA-CREF annuity contracts based upon the staff member's full-time basic annual budgeted salary. The University shall make no contribution to the annuities beyond the end of the fiscal year in which the individual reaches the normal retirement age of 65 (age 66 for those employed prior to 1 July 1948).
During the entire period of reduced employment, the individual will qualify for all staff privileges and benefits, including participation in the Group Insurance Program on the same basis as full-time staff. The University will continue its regular contributions, if any, to these programs during this period.
- The program shall be in effect for an initial period of five (5) years, beginning 1 July 1979. During the fifth year of operation the effectiveness of the program will be assessed and a decision made whether to continue. Because of the difficulty in estimating the long-term financial impact of the program on the University, periodic evaluations will be undertaken throughout the life of the program.
Arthur G. Hansen