?Phased retirement? gives older faculty more flexibility

A new retirement plan being offered at some universities gives faculty who aren?t ready to give up the academic life a chance to partially retire?and still collect salary and benefits.

Enrolled in what?s known as a 'phased retirement' plan at the University of Utah, psychology professor Irwin Altman, PhD, has scaled back his work load by a third. At 67, Altman has served Utah for close to 30 years, which more than qualifies him for the plan. (Professors must be 55 with five years of service to qualify.) Meanwhile, the university continues to pay Altman most of his salary, plus full benefits: TIAA-Cref, health and insurance.

'It means I can maintain an active professional life with more flexibility for the writing and recreation I?d like to pursue on my own,' says Altman, who is a former vice president for academic affairs at the university.

Utah faculty who opt for this plan cut back their hours 25 percent or more but must commit to a fixed retirement date. Altman?s phase-out time will be eight years.

The program benefits both faculty and the university, says Audrey Lloyd, a University of Utah retirement services specialist. It gives faculty a chance to work less but still guarantees them the security of ongoing benefits. And it frees up departmental money to hire new, younger faculty but still retains the wisdom of older faculty.

Utah is among several universities?including Iowa, Kansas, North Carolina State, Virginia, Kentucky and Pittsburgh?trying out phased retirement arrangements. Such programs offer senior faculty an alternative to the usual retirement incentives provided by universities?typically a lump sum or bonus given to faculty who retire early.

Many universities seek ways to prompt retirement among their senior faculty because the federal government no longer requires faculty to retire by age 70, says Edward Sheridan, PhD, provost and professor of psychology at the University of Missouri. As a result, highly paid older faculty are staying on longer, often because they fear losing their health benefits. This makes it difficult for universities to hire new blood, Sheridan says.

Phased retirement plans offer a potential solution by continuing to handle faculty members? benefits as they ease out of the system. They also prevent faculty from suddenly hitting the end of their academic careers, which can be distressing, Sheridan says.

The plans differ according to home institution. Some of them pay faculty full salary for reduced hours but cap the number of years faculty can participate. Others, such as the North Carolina State plan, pay faculty half the salary for half-time work over a set period of three years. This allows less flexibility than the Utah plan but still provides faculty full benefits. And that?s the phased plan?s key attraction, says Altman.

?Bridget Murray