Re: Retirement/Benefit Policy for Faculty and Staff

Executive Memorandum No.C-14 sets forth Purdue University's retirement and benefit policy. This policy is in keeping with federal and state statutes.

RETIREMENT POLICY

University executives in high policy positions shall retire by the end of the fiscal year in which the age of 65 years is attained if (1) they have been employed in such capacity for the two year period immediately prior to retirement; and (2) they are entitled to the minimum retirement benefit specified by federal law for persons who occupy positions to which mandatory retirements may lawfully apply (currently an immediate nonforfeitable annual retirement benefit from Purdue University of at least $44,000).

The term "executives in high policy-making positions" is limited to the following:

• President
• Executive Vice Presidents
• Vice Presidents
• Chancellors of the Calumet, Fort Wayne, and North Central campuses
• Deans of Academic Schools, and the Dean of Libraries
• Director of the Agricultural Experiment Station, Cooperative Extension Service, and Intercollegiate Athletics

  If an executive in a high policy-making position holds a tenured faculty appointment in addition to administrative office, the executive has the right to return to the faculty position upon retirement from administrative office.

  There is no mandatory retirement age for any other employees of Purdue University.

  BENEFIT PROGRAMS

  The "normal retirement" age of 65 will continue to be used for benefit-planning purposes. Benefit programs will be continued for staff beyond age 65 with adjustments made on a cost-justified basis. The following benefits will be provided unless otherwise noted:

  1. Group Life Insurance

     Employees may elect optional term life insurance coverage beyond one times salary. The maximum amount of optional coverage is as follows:

     Age	Maximum Coverage Available
     Through 54	Annual Salary x 3.0
     55-64	Annual Salary x 2.5
     65-69	Annual Salary x 1.25
     70 and beyond	Annual Salary x 1.0

     All changes in coverage will be effective at the start of the fiscal year following the employeeÕs birthday.

  2. Long-Term Disability (LTD)

     LTD benefits are provided according to the following plan:

     Age at Disability	Benefit Duration
     Prior to age 60	Until individual is age 65
     60	60 months
     61	48 months
     62	42 months
     63	36 months
     64	30 months
     65	24 months
     66	21 months
     67	18 months
     68	15 months
     69 and beyond	12 months

     LTD benefits paid beyond age 65 will continue to be offset with other Purdue supported benefits, including social security and other retirement benefits to which the employee is entitled.

  3. Medical Insurance

     Medical insurance coverage is continued for employees and eligible spouses and dependents throughout their period of employment.

  4. Retirement Programs

     1. Public Employees Retirement Fund (PERF)

        Contributions to the Public Employees Retirement Fund will be continued for the benefit of participating employees as long as they employed in an eligible position.

     2. Defined contribution retirement plan (Teachers Insurance and Annuity Association [TIAA] and the College Retirement Equity Fund [CREF])

        Contributions to the retirement plan will be paid on behalf of participating staff as long as they are employed in an eligible position.

     3. Civil Service Retirements and Federal Employees Retirement System

        University employees, who are classified as federal employees by the Secretary of Agriculture of the United States are required to make contributions into these plans as long as they are employed in such positions.

     Participation in tax-deferred annuities, accidental death and dismemberment insurance, and the Beneflex programs remain unchanged for staff employed beyond normal retirement age.

  QUESTIONS

  Questions concerning retirement/benefit policies for faculty and staff should be directed to department Business Managers or Personnel Services— Compensation and Benefits on the West Lafayette campus and to the chief business officer at the Regional Campuses.

   

   

  Steven C. Beering
  President