Changes in Faculty Income Allowance Program: January 1
Current Program: The Faculty Income
Allowance Program (FIAP) was established in 1996 to provide
transitional payments for two years to a
faculty member who elects to retire before reaching the age
of sixty-nine. These transitional payments are based on the
average salary for Professors in the school of the faculty
member. They are available to any faculty member between the
ages of sixty-two and sixty-eight provided the faculty member's
service at the University of Pennsylvania exceeds fifteen years
at the time of retirement. Faculty members who complete fifteen
years of service after reaching the age of sixty-nine become
eligible for the benefits of FIAP at the end of fifteen years
of service. More extensive information on the current program
can be found at: www.hr.upenn.edu/benefits/retirement/fiap.asp.
Changes to Program: The second and third
recommendations in the report of the Task Force on Faculty
September 10, 2002) suggested changes in the Faculty Income Allowance
The current Early Retirement Window (ages 62-68) should
A faculty member also should be eligible for an early retirement
incentive under a "rule of 75." Faculty could retire as early
as age sixty (minimum age) with a combination of age and
service at the University of Pennsylvania equaling 75.
of 75" has the effect of making a slight reduction in the number
of years of service required of most faculty members for eligibility
for the Faculty Income Allowance Program. It also has the effect
of making an extremely large reduction in the service required
of faculty members who join the University very late in their
careers. Since such a large reduction seems excessive, the
recommendation of the Task Force is approved with the additional
condition that the minimum service required for eligibility
for the Faculty Income Allowance Program will be ten years.
The Table (below) compares the eligibility windows
of the current program with the eligibility windows of the
faculty salary to be used in the Faculty Early Retirement
Program should be changed to the faculty member's own salary
or a full professor's average salary in the faculty member's
own school in the year prior to retirement, whichever is
higher, subject to a limitation of 200 percent of the faculty
member's own salary as provided by law.
This recommendation is approved.
These changes will be effective as of January 1, 2004. They
will be incorporated in future descriptions of the Faculty
Income Allowance Program. Faculty members who have questions
should raise them with their department chair, with the office
of their dean, or with the Office of the Associate Provost.
Wales, Interim Associate Provost