Faculty Early Retirement Program

Transcription

1 Faculty Early Retirement Program

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3 FACULTY EARLY RETIREMENT PROGRAML The University of Southern California is offering a Faculty Early Retirement Program, developed with the input of a faculty committee and the Academic Senate, to help interested faculty members make the transition toward retirement. All full-time faculty, both tenured and non-tenure track, who have at least 10 years of full-time service as faculty in a benefits-eligible position at USC and who are 55 years or older at the time of enrollment are eligible for the voluntary program. Faculty can sign up any time during the enrollment period of September 2014 through June At that time, faculty will commit to retire by either retiring at once or by signing an irrevocable phased retirement letter and agreeing to retire within four years. Program Highlights* > Election of a phased retirement period of up to four years during which the faculty member may reduce his or her percent of effort to as low as 50%. > Payment of additional salary by the dean at the rate of 10% of the difference between the full-time annual core salary and the annual phased retirement salary. > Access to health and dental benefits available to full-time faculty as long as the faculty member serves at equal to or greater than 50% time during the phased retirement period. > Funding of up to $10,000 to complete a project during the phased retirement period or to begin scholarship on a new project. A one-page application is required. Please note that the research funds must be expended prior to retirement. > Reimbursement of up to $2,000 to defray documented estate planning or financial planning costs. > Reimbursement of up to $1,000 to defray documented costs associated with packing and moving the faculty member s office. > Provision of business cards upon request post-retirement. * Note that election to retire does not require that faculty participate in any or all features of the program. Faculty members can choose to participate as best suits their needs. 1

4 PROGRAM DETAILS Phased Retirement Faculty members may elect to retire at once or choose a gradual reduction in effort by signing a phased retirement agreement that provides for reduced activity at reduced salary, subject to the approval of the appropriate academic dean and Provost. Under the Faculty Early Retirement Program, phased retirement may be up to four years. All other elements of the phased retirement as outlined in the Faculty Handbook (Section 10-B) remain in place. The specifics of a faculty member s part-time appointment should be discussed by the faculty member with his or her dean or dean designate. The Vice Provost for Academic and Faculty Affairs is available to consult on the process. For faculty on fixed-term contracts, a phased retirement agreement does not extend the term of the underlying contract. In other words, the phased retirement agreement cannot have an end date beyond the end date on the current fixed-term contract. Health and Dental Benefits The faculty member s health and dental benefits during the phased retirement will be in accordance with the university s programs in effect at the time for full-time faculty as long as the faculty member serves at equal to or greater than 50% time. Additional Income While in phased retirement, faculty receive payment from the dean of an additional salary at the rate of 10% of the difference between the full-time annual core salary and the annual phased retirement salary. This payment is taxable income. Example 1: Professor X s annual salary is $100,000. He is at 70% effort in phased retirement so his commensurate salary is $70,000. His dean s office will pay to him as additional income 10% of the $30,000 difference, so he will get $3,000 in addition to his $70,000 salary. Example 2: Professor Y s percent of effort during phased retirement is 50% of a $100,000 salary. Her salary during phased retirement is $50,000. Her dean s office will pay to her as additional income 10% of the $50,000 difference, so she will get $5,000 in addition to her $50,000 salary. In both instances, the department will contribute to the university s fringe benefit pool at the prevailing fringe benefit rate. USC Education Benefits Faculty members hired before 2011 and with 15 years or more of service retain their eligibility for the university s tuition assistance benefit program as if they were full-time, benefits eligible employees. USC Office of Benefits Administration will need to confirm the number of years of service before the benefit can be applied. All other guidelines and restrictions apply. Faculty Retirement Navigator An important component of this program is access to a Faculty Retirement Navigator who can help faculty move through the retirement process and paperwork. Debbie Jones is housed in the Office of the Vice Provost for Academic and Faculty Affairs as the Faculty Retirement Navigator. Ms. Jones is available for confidential inquiries and appointments. Faculty who wish to participate in the Faculty Early Retirement Program or who have general retirement questions should contact Ms. Jones by calling (213) or writing to jonesdeb@provost.usc.edu. 2

5 PROGRAM DETAILS (additional features) Capstone Project Faculty participating in the Faculty Early Retirement Program may apply for up to $10,000 for a capstone project to complete a final project during the phased retirement period or to begin scholarship on a postretirement project. Any funds remaining at the time of retirement will be returned to the Office of the Provost. Help with Packing and Moving Upon execution of the retirement agreement, the Provost s Office will provide to the faculty member a reimbursement of up to $1,000 to be used for payment of packing and moving expenses of the faculty member s office. The one-time reimbursement will be made available upon submission of receipts that must be submitted any time after execution of a retirement agreement and at least two weeks prior to retirement. Please note that this payment may be considered taxable income. Financial Planning Faculty participating in the Faculty Early Retirement Program are eligible for a reimbursement of up to $2,000 for costs associated with professional financial planning and/or estate planning. The one-time reimbursement will be made available upon submission of receipts that must be submitted any time after execution of a retirement agreement and at least two weeks prior to retirement. Please note that this payment may be considered taxable income. University Stationery Retired faculty will be issued business cards and have access to university letterhead at their request. The Faculty Retirement Navigator will help order business cards as needed. Drawing upon Retirement Savings During phased retirement, the USC Retirement Savings Program permits faculty who are 59 1/2 or older to withdraw from retirement accounts as follows: > For tenured faculty, in-service withdrawals are available from funds in the supplemental source of the 403(b) accounts. Withdrawals are available from all other Retirement Savings Program accounts if the tenured faculty member has an executed phased retirement agreement on file with the Office of the Vice Provost for Academic and Faculty Affairs. Please note that there are restrictions on the access to funds in the TIAA Traditional investments while employed. To avoid delays, the USC Office of Benefits Administration will need a copy of the executed phased retirement agreement with the withdrawal paperwork. > For non-tenure track faculty, in-service withdrawals are available from all Retirement Savings Program accounts. Please note that there are restrictions on the access to funds in the TIAA Traditional investments while employed. Withdrawals are subject to the rules of the applicable annuity contracts and custodial accounts for example, lump sum cash-outs of the TIAA Traditional funds are not available as an in-service withdrawal. Lump sum distributions from the TIAA Traditional funds are available only within 120 days after termination of employment. Assets in the USC 457(f) Plan, USC 457(b) Plan for Eligible Faculty and Administrative Staff and the Hartford Deferred Compensation Plan are not available until full retirement from USC. The distribution elections made at time of enrollment in the 457(f) and the Hartford plans are irrevocable. For more information about your USC Retirement Savings Program accounts, please contact Keri Marroquin, USC Office of Benefits Administration Retirement Navigator, by calling (213) or kerimarr@usc.edu. 3

6 PRIVILEGES IN POST-RETIREMENT Health Insurance Post-Retirement Information on USC Senior Care, a supplemental plan to Medicare, can be found on the website of the USC Emeriti Center (emeriti.usc.edu). Coverage and eligibility are in accordance with the university s programs in effect at the time. Questions about USC Senior Care should be directed to USC Health Plans at (213) You may purchase this plan if you are a former member of the faculty, or a former member of the staff or the spouse, registered domestic partner or mutual financial dependent of the former employee, and are age 65 and over (or disabled and entitled to Medicare) and are enrolled in Medicare Parts A and B. There are no deductibles or co-payments for Medicare-approved health care services provided by USC physicians and at Keck Hospital of USC (including USC Norris Cancer Hospital) and USC Verdugo Hills Hospital. The program also includes dental and vision coverage, but does not include prescription drug medication. For prescription drug medication coverage, participants also must enroll in a Medicare Part D prescription drug plan. As stated, enrollment in Medicare Part A and Part B is a requirement for participation in USC Senior Care. Faculty and spouses under age 65 cannot enroll in USC Senior Care (unless they have Medicare Part A and Part B as a result of disability). To bridge gaps in coverage due to being under the age of 65, faculty may sign up for COBRA for up to 18 months. If the gap in coverage is greater than 18 months, enrolling through CalCOBRA via an HMO can bridge health insurance for up to 36 months. For this choice, faculty must enroll in the HMO before retirement. For gaps in medical coverage beyond months, faculty may consider insurance through the California Insurance Exchange. Contact Keri Marroquin, USC Office of Benefits Administration Retirement Navigator, by telephone (213) or kerimarr@usc.edu for additional information. USC Emeriti Center & Emeriti College The Emeriti Center, housed under the umbrella of the Vice Provost for Academic and Faculty Affairs, is the headquarters of retirement activity and service to the university. Programs include academic presentations, social events, service opportunities, and wellness events. The Emeriti College is the academic arm of the 4 retirement community. Faculty members plan, present and attend courses and presentations organized by the Emeriti College, both at the university and in their communities. All Emeriti Center activities are open to faculty and their spouses. To participate in these efforts, whether to be in leadership or to simply attend, please contact Janette Brown, Assistant Vice Provost, Emeriti Center by telephone at (213) or jcbrown@usc.edu. Note that a calendar of activities is available at emeriti.usc.edu. Emeritus/a Status The honorary designation of Emerita or Emeritus status is conferred by the President upon the recommendation of the faculty member s department or equivalent academic unit and dean. The designation may be awarded to tenured or to full-time non-tenure-track faculty on or after retirement, or be preapproved in contemplation of retirement to be effective upon retirement. Further details can be found in Section 10-A of the Faculty Handbook. Note that remote electronic access to library services is a privilege granted to designated Emeritus/a faculty. Gold Card Privileges Faculty are eligible for Gold Card privileges as negotiated by the USC Emeriti Center. Privileges currently include: > Parking: complimentary parking on the University Park Campus and some Health Sciences Campus structures > Libraries: in-person access to library collections > USC Bookstores: 10% discount on general books and gifts Continued University Involvement Research, Teaching, Advising, and Recall to Service Recognizing that faculty have a wealth of experience, knowledge and service to offer post-retirement to the university, the university leadership encourages the active participation of retired faculty in academic life in whatever capacity best suits the faculty member, department and school. Retired faculty may continue to be involved in research, teaching, advising and service for as long as the terms are mutually agreed to by all parties involved and with the Provost s approval. For further details, see Section 10-C of the Faculty Handbook.

7 FREQUENTLY ASKED QUESTIONS What is Recall to Service? Retired faculty members are eligible by invitation to serve on a year-to-year or other fixed-term basis (without tenure) for services, compensation and percentage of effort that are agreed upon by the faculty member and his or her dean with the Provost s approval. Unless the Provost gives special permission, the percentage of effort must be less than 50%. See Section 10-C of the Faculty Handbook for more information. May I continue my research activities in retirement? Yes, so long as the arrangement is agreed to by the appropriate academic dean and faculty member and approved by the Provost. Talk to your dean about possible options. Faculty members can continue to be principal investigators on grants and contracts and submit new proposals. Unless the Provost gives special permission, the percentage of effort must be less than 50%. See Section 10-C of the Faculty Handbook for more information. Will I have continued access to my account? Yes, accounts are a privilege granted to retiring faculty in good standing with their schools. May I continue directing/advising graduate students in retirement? Yes, so long as the arrangement is agreed to by the appropriate academic dean and faculty member and approved by the Provost. Talk to your dean about possible options. Faculty members can continue to serve on thesis committees and advise graduate students. Unless the Provost gives special permission, the percentage of effort must be less than 50%. See Section 10-C of the Faculty Handbook for more information. May I continue participating in my department or the university in retirement? Yes. Talk to your dean about possible options. Retired faculty members serve on various university-wide committees. If interested in serving on a committee, please notify both your dean and the USC Emeriti Center. The USC Emeriti Center also has a number of opportunities for retired faculty through the Emeriti College, Retired Faculty Association, Trojan ENCORE program, the Emeriti Center itself and other programs. More information can be found at emeriti.usc.edu. Interested faculty are encouraged to contact Janette Brown, Assistant Vice Provost, Emeriti Center by telephone at (213) or jcbrown@usc.edu. How to Sign Up To initiate early retirement, to obtain additional information on the Faculty Early Retirement Program or to schedule a confidential appointment, please contact: Debbie Jones Faculty Retirement Navigator Office of the Vice Provost for Academic and Faculty Affairs ADM 204 MC 4019 Tel: (213) jonesdeb@provost.usc.edu faculty.usc.edu/retirement 5

8 Debbie Jones Faculty Retirement Navigator Office of the Vice Provost for Academic and Faculty Affairs ADM 204 MC 4019 Tel: (213) faculty.usc.edu/retirement