The Task Force met during 2000-2002 and submitted a formal report that was
published in Almanac on September 10, 2002. That report
has been subsequently reviewed by the Faculty Senate and
by the University Administration. Although the report did
not suggest any sweeping changes in the University's guidelines
on faculty retirement, it did recommend some incremental
changes to make them more effective. Each of the recommendations
of the Task Force is listed below, followed by a statement
on implementation and a few brief comments.
Office of the Associate Provost should move immediately to
establish an Association of Retired Faculty.
Office of the Associate Provost is currently working with
a group of emeritus faculty members to establish such an
current Early Retirement Window (ages 62-68) should be maintained.
A faculty member also should be eligible for an early retirement
incentive under a "rule of 75." Faculty could retire as early
as age 60 (minimum age) with a combination of age and service
at the University of Pennsylvania equaling 75.
recommendation, with modifications, has been accepted.
For details see "Changes in Faculty Income Allowance Program" in Almanac November
25, 2003 (www.upenn.edu/almanac/v50/n14/OR-fiap.html).
is recommended that the faculty salary to be used in the
Faculty Early Retirement window plan 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
change has been implemented. For faculty retirements that
occur after January 1, 2004 the salary on which the 165%
income allowance is based is either the faculty member's
own academic base salary or the average academic base salary
for full professors in the school.
additional option should be added to the phased retirement
program allowing standing faculty and clinician-educators
in this program to reduce job duties to 25 percent with a
pro rata reduction in salary and a relinquishment of tenure.
will not be done. The attendant bureaucracy
of a formal new program does not seem justified for an
option that would be utilized by very few faculty members.
Faculty members who are interested in reducing job duties
to as little as 25 percent might investigate the possibility
of negotiating to continue in part-time employment after
one-time financial planning award (up to $3,000) should be
made available to retirement age faculty (54 and over) to
pay for professional financial planning services that the
faculty member obtains on his or her own behalf.
will not be done in the immediate future. Although
financial planning assistance might be very helpful to
some faculty members, the cost of such a benefit cannot
be justified at a time of increasing demands on the employee
benefits pool, e.g. health insurance costs.
faculty members should have the option of using or not using
the modifier "Emeritus" or maintaining their "Professor" title.
The same rights and restrictions to being retired would apply.
is now University policy, effective immediately.
faculty member who has committed to retire and who has sabbatical
leave credits should be able to take a "retirement leave" without
having to return to his or her duties at the University.
has been the informal policy for several years. The Handbook
for Faculty and Academic Administrators will be updated
to formalize the policy.
addition to the retirement plan information and education
provided at the University level, each School in the University
should periodically discuss with its faculty retirement related
Provost's Office will continue to encourage Deans to do
the charge to the Task Force on Faculty Retirement asked
that it examine the possibility of "discontinuing University
Tax-Deferred Annuity (TDA) contributions when a faculty member's
TDA had reached a certain level," the Task Force made no
recommendation on this issue. Its report did conclude
that "Given the stock market situation of the last few years,
the Task Force felt that now was not the time to consider
such an option. However, it is an option that should
be periodically reviewed as circumstances warrant." A review
of overall retirement benefits is planned in 2004. The issue
of discontinuing TDA contributions will be examined again
as part of that review.
Wales, Interim Associate Provost