Retirement Workshop Moratorium on Mandatory Retirement Faculty Relations June 2007

What’s New?  Memorandum of Agreement effective May 15, 2007  Temporary moratorium on application of Policy 52 (Retirement of Faculty)  Human Rights Legislation change effective Jan. 1, 2008

What Hasn’t Changed?  Normal Retirement Date (NRD) concept (age 65)

What does it mean? An individual can:  Keep working past age 65  Create their own retirement plan  Choose to retire

What else does it mean?  You can hire faculty at any age  This applies to new hires and retirees

Working Post-65 If a member continues to work or is hired post-65…what you should be aware of:  Health & Other Economic Benefits  Leaves

Health and Other Economic Benefits  Some benefits will continue without change  Other benefits will continue with change  Others will end  But they will almost all end when the member takes their pension, either voluntarily or as required by Income Tax Act (age 69 but moving to 71)

Benefits that “continue” without change:  Faculty Pension  MSP  Extended Health Benefits  Dental  Optional Life Insurance for Members  Employee and Family Assistance Plan  Professional Development Reimbursement  Dependent Benefits following Death

Benefits that “continue” with change:  Basic Group Life coverage is reduced to 1x basic earnings  Change occurs on the Normal Retirement Date (NRD)

Benefits that end on NRD  Income Replacement Plan  Spousal Optional Life Insurance

Benefits that continue for life:  Tuition Fee Waivers Free for BC Residents Dependent children

Leaves  All leave provisions remain in place except as modified for those entering a Retirement Option  Sick leave considerations

Retirement Planning  Information Sessions, Workshops & Counselling  Working to Retirement Pilot Project: Retirement Options Reduced Appointments Options for Term Appointments

Information Sessions, Workshops & Counselling  Individual information sessions on pension-related matters  One-day sessions for members who are at least 60 years old, and their spouses, coordinated by the Pension Administration Office, featuring guest speakers on wills and estates, the Faculty Pension Plan, retirement options, and other related topics (details to follow)

Information Sessions, Workshops & Counselling  Customized 2-day retirement workshops for members who are at least 60 years old, and spouses, which provides a holistic approach with an external consultant (details to follow)  Individual counselling with a University- approved financial consultant, up to three hours per member (details to follow)

Conditions for Retirement Options  Faculty Association Member  At least 60 years point of entry  At least 10 years full-time continuous point of entry  In a tenure-stream position or full-time 12-month Lecturer  One year notice of election of Option (unless waived)  Irrevocable notice of retirement

What Counts as Service? Active appointment in an eligible rank in the bargaining unit Paid leaves including sabbaticals, maternity, parental and short term sick leaves Time spent in a reduced appointment per Agreement on Reduced Appointments DOESN’T INCLUDE unpaid personal or disability leaves or secondments

Retirement Options 1.Phased-In Retirement Option: Gradual decreased workload % over 3 years At Member’s election without approval 75% to 50% to 33.33% Different % allocation negotiable between member and Head, but cannot be lower than 33.33% Full scope of duties

Retirement Options 2.Part-time Appointment Option: 50% to 80% for up to 4 years At Member’s election without approval if 50% Head approval required if 51% to 80% Full scope of duties Range of load options with Head’s agreement o Eg. 50% for full year o Eg. 100% for 6 months, 0% for 6 months

Retirement Options 3.Reduced-Scope Appointment Option: Full- or part-time for up to 4 years E.g. full-time teaching/service only E.g. full-time research/service only E.g. part-time teaching only Head & Dean approval required

Retirement Options 2007 Cohort Effective Date of Retirement Option Notice of Consideration of Option Irrevocable Notice June 30 th NRD Retirement Option begins July 1, 2008 June 30, 2007 December 31, 2007; may be waived or extended to March 31, 2008 December 31 st NRD Retirement Option begins July 1, 2008 August 31, 2007 March 31, 2008; may be waived.

Other Considerations  Salary = workload %  Benefits per Agreement on Reduced Appointments In Phased-in option, if working between 33.33%-50%, benefits & pension maintained as though working at 50% Pension contributions are maintained as of receiving 100% salary by both Member and UBC if 15 years of service  CPI, Merit and PSA and other salary increases are applied to the full-time salary but assessed on actual assignments

Study Leave Considerations  Must be planned in advance (prior to entering into Retirement Option)  Must be completed within 1 year of date of retirement  Salary paid will be per Agreement on Reduced Appointments

Reduced Appointment  Agreement on Reduced Appointments  No age limitations  Only for tenured members in FA  50%-99% part-time appointment  On a continuing basis or for a specific period  Full-scope of duties  Head/Dean approval required

A Comparison… Part-time Appointment Retirement Option Reduced Appointment 50%51-80% Irrevocable Notice of Retirement Yes No Head/Dean Approval Required NoYes Age RestrictionMinimum 60 yrs of ageNo Length of Service Requirement Minimum 10 full-time continuous yrs No (15 yrs required for FPP top-up) Rank/Tenure Restriction Tenured/Confirmed & full-time 12-month Lecturers Tenured/Confirmed Only

Options for Term Appointments  Term appointees can work towards retirement by requesting/accepting a part-time appointment if available and meeting the needs of the academic unit  Note that tenure track appointments cannot be part-time

Retirement  June 30 or December 31  Requires notice in writing

Post-Retirement  May be re-hired as a new hire  Post-Retirement Appointments (Policy 27) 1 year at a time Teaching and collection duties Retirement and Survivor Benefits  Emeritus Status  Available Benefits

For Assistance…  Our website: The Memorandum of Agreement Re: Mandatory RetirementMemorandum of Agreement The Collective Agreement, Agreement on Reduced AppointmentsAgreement on Reduced Appointments Faculty Appointment Options spreadsheet Faculty Appointment Options Notice Requirements for Retirements, Options, and Resignations Notice Requirements

For Assistance…  Our website (cont’d): Frequently Asked Questions  For HeadsHeads  For Faculty Association MembersFaculty Association Members Template letters for the cohorts scheduled to retire in June 2007 and December 2007June 2007 December 2007 Call us!