Faculty Retirement Option Program
The University is pleased to announce that effective July 1, 2018, it will offer a phased retirement option to tenured faculty whose age and years of service added together are equal to or greater than 75, and who have at least 10 years of continuous, full-time service at Pace. This new option is currently planned to be available indefinitely and may be exercised at any time of the faculty member’s choosing on or after July 1, 2018.
Eligible faculty electing phased retirement:
- Will be assigned a 50% workload and will receive payments for performing that workload equal to 50% of their salary PLUS 1% for each year of full-time continuous service (see example calculation below).
- The arrangement would be for one or two years, at the faculty member’s choice.
- For the duration of the term of the agreement, faculty will retain their full-time tenured faculty status and, therefore, continue their eligibility for benefits in accordance with the terms of benefits plans that are in effect at the time of their election and retirement.
Example: Faculty member earns $100,000 salary and has 35 years of continuous full-time service. Annual salary for the one- or two-year period (for performing the 50% workload) would be: ($100,000 x (50% + 35%) = 100,000 x 85% = $85,000
Beginning on the July 1, 2018 effective date of the new phased retirement option, the University will no longer offer any University-wide short-term faculty retirement incentive plans. In addition, as of that date, Deans will no longer be authorized to enter into any individually negotiated retirement incentive agreements with faculty members. Any proposed individual faculty retirement incentive agreement that may be negotiated with a Dean prior to July 1, 2018 will be subject to approval by the Provost, University Counsel, and Human Resources.
Complete details of the new option will be included in a policy that will be posted online by Human Resources and distributed to tenured faculty. Human Resources will also provide interested tenured faculty with the form of agreement that they must sign in order to elect the phased retirement option.
Matt Renna, Associate Vice President for Human Resources, is available to consult confidentially with faculty members and their families regarding the financial implications of retirement, such as the University’s 403(b) retirement plan and post-retirement healthcare.