157.93 Retirement Options

A. Background

Furman University desires to offer options for tenured faculty members in their retirement planning.

B. Policy

Any faculty member who qualifies for early retirement under the terms established in Policy 157.91 may voluntarily select a specific retirement option. Possible options include phased retirement or early full retirement. These options are made available at the discretion of the administration and are not considered a fringe benefit or an entitlement.

C. Guidelines

1. The retirement options offered to qualifying faculty members include:

Option A: Phased retirement, consisting of a reduced teaching load for one (1) to three (3) years, followed by full retirement. Other duties such as advising and committee work shall continue during the phased retirement period. Salary will be adjusted to reflect the reduced responsibilities. Fringe benefits based on salary (retirement, FICA, long term disability, life insurance) will be adjusted to the new salary level. The University will continue its contribution to medical insurance.

Option B: Early full retirement, beginning on a mutually agreeable date, supplemented by a lump-sum payment schedule agreed upon by the faculty member and the Provost. The maximum payment will be the amount allowed by the current ERISA guidelines for a severance plan, including the university contribution to medical insurance.

2. Provost and Dean may make exceptions to the plans when it is in the best interest of Furman University.

3. Provost may deny a faculty member one or both of the above options when it is in the best interest of Furman University.

4. The University may offer additional options for a specific period of time when it is in the best interest of Furman University.

5. The protections of tenure continue until full retirement.

6. Agreements for a specific retirement option must be made at least eighteen (18) months in advance of the effective date. Implementation of the option is contingent upon execution of a waiver to provide appropriate planning time (normally one [1] year) and to allow for the 180-day waiting period after the agreement is signed as required by law on file in the office of the Provost.

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