Phased Retirement Program for Faculty
The Phased Retirement Program allows eligible full-time faculty members to elect to reduce their teaching responsibilities in preparation for full retirement from the College. The normal teaching obligation of a faculty member participating in the Phased Retirement Program is 3 courses per year.
Eligibility
Full-time, tenured faculty members who are at least age 59-1/2 and have at least 10 consecutive years of full-time service at Franklin & Marshall when the Phased Retirement period begins are eligible to participate.
An irrevocable Phased Retirement Agreement must be finalized no later than April 15 of the year preceding the last academic year of full-time service. The last year of full-time service cannot be a year in which a sabbatical or leave of absence is taken.
Phased Retirement Period
The maximum period of Phased Retirement is 3 consecutive academic years. In exceptional cases, a faculty member may, during the course of the 3 year Phased Retirement period, with the consent of his/her department and the College, further negotiate his/her teaching load. Faculty members under a Phased Retirement Agreement are not eligible for sabbatical leaves.
Salary
While participating in the Phased Retirement Program, salary will be at an annual rate of twenty percent (20%) of full base salary for each course taught, or, under normal circumstances, 60% of full base salary. Faculty members under a Phased Retirement Agreement are eligible for pro-rated annual salary increases based on the average increment given all faculty in rank.
Fringe Benefits
Dental Coverage-- Faculty members participating in the Phased Retirement Program continue to be eligible for dental coverage per standard College policies, and pay the same premiums offered to active, full-time employees. Dental coverage is discontinued upon retirement, although a retiree may retain dental coverage temporarily, generally for up to 18 months, via "COBRA".
Health & Prescription Drug Coverage -- Faculty members participating in the Phased Retirement Program continue to be eligible for health and prescription drug coverage per standard College policies, and pay the same premiums offered to active, full-time employees.
Upon full retirement, a faculty member who completed his/her Phased Retirement period will be eligible for health and prescription drug coverage at the same premiums offered to Medicare-eligible retirees (currently, the same premiums that active employees pay). For those retiring before age 65, this represents significant savings. Current premiums can be found by visiting Retiring from Franklin & Marshall. Please note: if a faculty member under a Phased Retirement Agreement retires before the end of the agreed-upon Phased Retirement period, he/she will not be eligible for reduced health insurance premiums until eligible for coverage through the federal Medicare program.
Per normal College policies, upon retirement College retirees, and spouses, who are eligible for coverage through Medicare must enroll in Medicare Parts A and B on the earliest possible date to be eligible for health insurance coverage through the College.
Flexible Spending Accounts Plan-- During the Phased Retirement period, a faculty member may continue to participate in the Flexible Spending Accounts Plan.
Life Insurance -- During the Phased Retirement period, life insurance and Accidental Death & Dismemberment coverage will be equal to 1.5 times actual (reduced) salary, up to a maximum coverage level of $100,000. Phased Retirement participants may be able to purchase an individual policy to replace the amount of coverage eliminated. To do so, the Phased Retirement participant must contact the life insurance carrier within 31 calendar days of experiencing a reduction in life insurance coverage. Upon full retirement, life insurance coverage will equal 25% of what the coverage amount would have been immediately prior to retirement if not participating in the Phased Retirement Program.
Long-term Disability -- Coverage under the Long-term Disability Plan will continue, with the amount paid in the event of total disability equal to 60% of the faculty member's actual (reduced) base monthly salary immediately preceding the disability. Per standard College policies, long-term disability coverage is discontinued at full retirement.
Retirement Plan -- The College will make its normal retirement contribution on behalf of the faculty member, based on actual (reduced) base monthly salary received during the Phased Retirement period. Phased Retirement participants may make elective, pre-tax contributions to the Retirement Plan through salary reduction. Faculty members participating in the Phased Retirement program, who are also at least age 60, may begin receiving distributions from their retirement account. Upon full retirement, retirement savings may be withdrawn or left invested within the College's Retirement Plan.
Education Benefits -- Faculty members participating in the Phased Retirement Program continue to be eligible for education assistance benefits, including benefits offered to eligible dependents, per standard College policies.
Outside Employment
While under a Phased Retirement Agreement, a faculty member may accept outside employment up to 40% of full-time.
Faculty Status
Participants in this Phased Retirement Program will continue to be active faculty members, with a full vote in faculty meetings. However, faculty members under this Agreement will not be eligible to serve as a department chair or hold other academic positions that require full-time service.
Full Retirement
A faculty member under a Phased Retirement Agreement must fully retire from the College at the end of the Phased Retirement period. Such a faculty member may retire before the end of the Phased Retirement period by providing one year's notice to the Office of the Provost. The College will rely on this in planning for its academic staffing, including the employment of additional faculty.
Full-time faculty interested in additional information regarding the Phased Retirement Program should contact the Office of the Provost.
Information about benefits available to retired College employees is available from the Retiring from Franklin & Marshall web page, and through the Human Resources office.
This Phased Retirement Program may be amended, modified, or terminated by the College at any time. Such amendment, modification, or termination will not affect faculty members who have already signed a Phased Retirement Agreement.
