Policy
a. Basic Eligibility
Early retirement: A full-time faculty member between the ages of 55-59 years of age (or who will reach 55 years of age by the following summer) and has completed 15 years of service at the College by the end of an academic year, may apply.
Phased Retirement: A full-time faculty member who will be 60 years old (or who will reach 60 years of age by the following summer) and has completed 15 years of service at the College by the end of an academic year may apply. The benefit period can range from one to three years.
b. Approval
The President of the College may deny an application for Early Retirement/Phased Retirement if any of the following apply:
- the President determines that granting the application would seriously disrupt an academic department or other College operation or program
- the President determines that the College will have difficulty in replacing the applicant with a similarly qualified person at or below the compensation level of the applicant
- the President determines that granting the application will lead to difficulties in meeting contractual, financial, legal or other obligations by which the College is bound
- the President determines that granting the application will negatively affect an audit, accreditation or any other review to which the College or any of its programs may be subject
- the President has received more applications for entrance into Early Retirement/Phased Retirement than can reasonably be granted by reason of contractual, financial, legal or other obligations by which the College is bound.
If the President cannot accept all applications for Early Retirement in a given year, any person(s) denied Early Retirement in the given year will be given first priority for Early Retirement in the following year. Such person(s) may apply for Phased Retirement in the interim. The total benefit period of Early Retirement and Phased Retirement will nonetheless be limited to a maximum of 3 years. If the President must deny applications for Early Retirement, they will first accept those with most years of service and then those who are oldest from among the eligible applicants in a given year.
c. Early Retirement
This program shall be open to all full-time faculty (a) who are at least fifty-five (55) years of age but who have not reached sixty (60) years of age on the date of retirement; (b) who have fifteen (15) or more years of service at Mount Saint Mary College, and (c) who have been employed by the College on a full-time basis during each of the two (2) years preceding the date which their early retirement shall commence.
Application Procedures - A written request to participate in the retirement incentive program must be submitted and received by the Vice-President of Academic Affairs no later than September 1st of the year prior to the year of actual retirement.
Provisions - A leave of absence will not be considered as years of service for the purpose of determining eligibility for early retirement. In the event of death of the early retiree prior to the effective date of retirement, the College shall have no obligation to make any remuneration under this plan.
Incentive - The College will make a payment to the retiree calculated on the retiree's contractual base salary as of the effective date of retirement, based upon the participant's age on the date of retirement. The contribution percentage shall be calculated under the following provision: A lump sum or two-phased payment will be distributed, based upon age and a percentage of retiree's base contractual salary, as listed below:
| Age |
Percentage |
| 55 |
45% |
| 56 |
40% |
| 57 |
35% |
| 58 |
30% |
| 59 |
25% |
Base contract salary shall not include summer school pay or other non-regular salary or earnings.
The number of retirees retiring under this policy may be limited by the College Board of Trustees depending upon budgetary conditions but shall not be limited to less than 15% of those eligible per year. Faculty members electing early retirement may buy-in to the College group health plan. Faculty members making such an election will be responsible for 100% of the cost of health plan premiums.
d. Phased Retirement
A full-time faculty member who will be at least 60 years of age (or who will reach 60 years of age by the following summer) and has completed 15 years of service at the College by the end of an academic year may apply. The benefit period is a maximum of three years.
Participants in the phased retirement program are covered by the following fringe benefits: health insurance, tuition remission, a College contribution to the retirement plan based on the actual salary received, provided the faculty member continues to contribute a minimum of 5% of W-2 wages. Participants in this plan are not eligible for sabbatical leave. If a faculty member participates in the phased retirement program, they will move from a tenure track position to a multi-year (three year maximum) contractual arrangement. Election of a phased retirement program must be made by September 1st of the academic year prior to participation. Such election is irrevocable.
Participation in the phased retirement program requires approval of the Vice-President for Academic Affairs and of the individual's Dean, Division Chairperson or Library Director; such participation will not be unreasonably withheld or postponed.
The Dean, Division Chairperson, or Library Director should accept all applications for the program, in the order in which they are received. Upon forwarding the applications to the Vice-President of Academic Affairs, the Dean/Chairperson/Director should comment upon concerns about the percentage of faculty who apply (especially if the number exceeds 25% of tenure track faculty in the department). The applications of all faculty who apply should be forwarded to the Vice-President for Academic Affairs. The President will make the final decision, after consultation with the Vice-President for Academic Affairs. The Phased Retirement Program is governed according to legislation adopted by the Executive Committee of the Board of Trustees of Mount Saint Mary College and may be altered, amended or eliminated with the approval of the Board of Trustees as described above.
- Participation
Once a formal written agreement has been completed, certain benefits are provided as if the faculty member were full-time while other benefit programs are modified based upon the actual appointed time for the faculty member.
- Medical Insurance
Coverage will continue as if the faculty member were a full-time employee of the College. The faculty member will be required to make the contribution required of all other full-time employees toward the cost of plan premiums.
- Dental Insurance
Coverage will continue as if the faculty member were a full-time employee of the College. The faculty member will be required to make the contribution required of all other full-time employees toward the cost of plan premiums.
- Retirement Plan
The College will continue to contribute to the faculty member’s 403(b) retirement account provided the faculty member continues to contribute at least 5% of W-2 wages. The College contribution will be based upon the actual salary paid to the faculty member. The faculty member may elect to receive distributions from the Supplemental Retirement Account during the phased retirement period.
Distributions from the College Retirement Plan are not permissible until an individual is completely separated from employment. Phased retirement participants should contact TIAA-CREF directly for the appropriate distribution forms and related materials.
- Tax Deferred Annuity Plan (TIAA/CREF)
Phased retirement participants may continue making voluntary pre-tax contributions to their accounts in the Tax Deferred Annuity Plan based upon their actual phased retirement salary. These contributions are subject to regulatory limits.
- Tuition Exchange
Tuition waiver benefits will be granted based on the benefit applied to employees with part-time status.
- Select Benefits
The faculty member’s coverage and payroll deductions will continue based upon the level of coverage that the member has chosen.
- Other Payroll Deductions
Any other voluntary payroll deductions will be unaffected as long as the faculty member continues to receive pay from Mount Saint Mary College.
- Summary: Phased Retirement
After reaching the age of 60 and completing their 15th year of service on the faculty, faculty members may elect to reduce their teaching load, with appointment at one-half (½) salary, until they reach full-time retirement. Such a plan is governed by the following conditions:
- A faculty member negotiating a phased retirement option receives a written contract specifying the terms of service during phased retirement. This agreement is worked out by the candidate for phased retirement with the Vice-President of Academic Affairs and the relevant department and specifies such things as the courses to be taught, the department work to be done, the disposition of office space, College committee service, and other College work. Such agreements provide for flexibility, i.e., courses taught half-time across both semesters or full-time for one-semester per year and are open to revision if all the parties agree.
- The maximum term of a phased retirement contract is three years, with details of salary subject to negotiation involving the faculty member and the Vice-President of Academic Affairs.
- Health insurance benefits are continued for any faculty member who retires fully after a period of phased retirement until they become eligible for Medicare. Faculty members making such an election will be responsible for 100% of the cost of health plan premiums. Tuition remission benefits, as described above, are available for any faculty member during the entire period of phased retirement.
- An individual who elects this plan may shift to full retirement at any time with one year notice.