Policy Number: HR-01
Effective: 01/09/2019
Last Revised: 01/09/2019
Responsible Executive: Executive Director for Human Resources
Contact Information: 765-677-3412
Faculty Phased Retirement Policy
I. Scope
This policy applies to eligible full-time faculty.
II. Policy Statement
The Indiana Wesleyan University Faculty Phased Retirement Program (the “Program”) provides an opportunity for faculty to transition more gradually toward retirement, instead of immediately transitioning from full-time employment to full retirement.
III. Reason for the Policy
For participants in the Program, the goal is for the faculty member to remain active in his/her faculty role without the demands and expectations of a full-time position. This policy will hopefully encourage better adjustment emotionally and financially to full retirement. This also provides for enhanced continuity and succession planning within the academic units, which would be less likely when full retirement is the only option.
IV. Procedures
A. Eligibility and Limitations
The Program is available to all full-time faculty members who:
1. Hold the rank of Associate or Full Professor;
2. Have at least 10 years of completed service as a full-time faculty member with Indiana Wesleyan University; and
3. Are age 62 or older.
The University reserves the right to set participation limits annually, at the discretion of the University Provost in conjunction with Principal Academic Unit (PAU) leaders.
B. Program Description
The Program details, for approved faculty members, include the following components:
1. When participating in the program, the faculty member’s load and pay is reduced by half. The half-time load may include teaching, curriculum development, advising, or any other such assignment;
2. No overload is permitted during participation in the Program, including teaching, curriculum development, advising, or any other assignment which would put the individual over half-time loading;
3. Compensation paid during this period is paid over twelve (12) months irrespective of the pattern of duties assigned to the faculty member;
4. IWU will continue to contribute to the faculty member’s retirement, using the ½ pay rate. Other group benefits such as life insurance, disability, vision, and dental will cease upon entering the Program;
5. If the participant is not yet eligible for Medicare, health insurance coverage may be available through IWU’s Retiree Medical Program. Human Resources personnel can assist the participant in identifying health insurance options;
6. The length of participation in the Program is two years, at which time the faculty member fully retires or moves to adjunct status if s/he wishes to continue teaching;
7. During the faculty member’s time in the Program, adjuncts will be used to cover his/her remaining classes. The academic unit cannot replace the faculty member with a full-time hire for two years.
C. Application Process
The Faculty Phased Retirement Program shall follow the following enrollment period and application process:
1. The faculty member should apply for the Phased Retirement Program by July 1st, one year before s/he desires to move into the Program.
2. In the fall, the head of the academic unit shall consider all applications submitted by the prior July deadline to determine who will be able to participate in the Program the following July. As there will be a limited number of slots available in any given year in the Phased Retirement Program, such considerations as the faculty member’s disciplinary expertise and the availability of adjuncts to cover the faculty member’s courses will be used to determine who is awarded the available slots.
3. Faculty members will be notified by November 1st of their eligibility to participate in the Program the following July.
D. General Provisions
1. Nothing in the Program precludes a participating faculty member from withdrawing from this Program and entering full retirement status earlier than the agreement states. However, s/he may not extend retirement past the date in the written Agreement. Any plans for accelerated retirement will be shared as early as possible with the applicable academic unit leader or University Provost to accommodate business continuity needs.
2. Participating faculty members are not eligible for rank improvement or step increases to salary while in the Program. However, any cost-of-living adjustments that are University and Board approved for all employees will be applied to the faculty member’s salary.
3. Participating faculty members will remain subject to the University’s Faculty Handbook, Employee Handbook, and Code of Conduct policies.
4. The Program is completely voluntary and is available when agreed to and entered into by a mutual written agreement between the eligible faculty member and Indiana Wesleyan University – with pre-approval by his/her academic unit leader and the University Provost.