[PDADC-L] Special Retirement Program

HR #17, 2010-11
PDAD&C #46, 2010-11

January 26, 2011

To: PDAD&C

From: Angela Hildyard
Vice-President Human Resources & Equity

Edith Hillan
Vice Provost, Faculty and Academic Life

Date: January 24, 2011

Re: Special Retirement Program

We are very pleased to advise you that we have reached agreement with the Faculty Association regarding a Special Retirement Program for faculty members and librarians. The program, which is offered on a one time only basis, will provide a financial incentive to eligible faculty members and librarians who opt to retire as of June 30, 2011 or December 31, 2011.

Attached please find a description of the program and the application form.

We plan to offer information sessions to interested faculty members and librarians and the dates of these will be circulated shortly.

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Special Retirement Program for Faculty and Librarians

Open for the period February 1, 2011 to December 31, 2011 only.

Preamble
The purpose of the Special Retirement Program is renewal and not reduction of faculty and librarians. To this end, University agrees searches will be undertaken within a three year period for 90% of the number of positions vacated and within a five year period for 100% of the number of positions vacated across the University as a whole as a result of this program.

This program will be completely voluntary; all eligible faculty and librarians are entitled to participate in accordance with the terms of the program.

Eligibility
Tenured Faculty
Senior Lecturers
Librarian 3 & 4

Who, at the date of retirement: Meet the 60/10 requirement for an unreduced pension in accordance with the University of Toronto Pension Plan (the “pension plan”); and have NOT already commenced Phased Retirement

Note: Any eligible faculty member or librarian who has already advised his/her Chair or Dean of proposed retirement on June 30, 2011 or December 31, 2011, may participate in this program in accordance with its terms.

Financial Package
12 months’ salary, (prorated for part time faculty and librarians) which may be paid in the following ways:

Salary continuance (subject to regular withholdings including pension plan contributions to the extent credited service continues to accrue under the pension plan) in the form of a Paid Leave of Absence for 12 months (with continued accrual of credited service in the pension plan to the extent legally permissible); or

Retiring Allowance of 12 months salary (paid in such tax advantageous manner as may
be legally permissible but without any accrual of credited pension service under the
pension plan); or

Six months of salary continuance in the form of a Paid Leave of Absence (with continued accrual of credited pension service under the pension plan) and 6 months retiring allowance (with no continued accrual of pension service under the pension plan) and paid in such tax advantageous manner as may be legally permissible).

Retirement Dates
If the faculty member or librarian elects the financial package in the form of a Retiring Allowance they must elect a Retirement date of: June 30 2011; or December 31, 2011

If the faculty member or librarian elects to take Salary Continuance with a six or twelve month Leave of Absence, the Retirement date will be the day following the end of the leave of absence and must be one of December 31, 2011; or June 30, 2012; or December 31, 2012.

Dates & Irrevocability
Applications to be submitted by April 1, 2011 for a June 30 2011 change in status to Retirement or a Leave of Absence; by September 30, 2011 for a December 31, 2011 change in status to Retirement, or a Leave of Absence. Once approved, applications are irrevocable.

Teaching
Stipendiary teaching will be permitted as of the date of retirement or the start of the Paid Leave of Absence.

Benefits
Long Term Disability (LTD)

Pre Normal Retirement Date (NRD) LTD coverage and/or LTD benefits in payment will cease as of the approved retirement date OR as of the date of the Paid Leave of Absence, as the case may be.

Post Normal Retirement Date LTD coverage ceases at NRD.

Professional Expense Reimbursement Accounts (PERA)PERA allocation ceases as of the date of retirement or date of commencement of the Paid Leave of Absence. All eligible expenses must be incurred prior to the date of retirement or commencement of Paid Leave of Absence salary continuance.

All other Benefits Retiree Benefits as in effect as of the Date of Retirement or the start of the Paid Leave of Absence, as the same may be amended from time to time.

Earned Study Leave
Any applicant to this program who, as of June 30, 2011 or December 31, 2011 would be entitled to a 6 month study leave at 82.5% salary in accordance with Article 4(c) of the Memorandum of Agreement, will receive an additional 2 (two) months’ salary in lieu of leave. Applicants entitled to a 12 month leave will receive an additional 4 months‘ salary in lieu of leave.

This additional payment cannot be used for a Paid Leave of Absence and must be received as a retiring allowance.

Financial Counselling
Eligible faculty and librarians may receive one additional hour of financial counselling if they have already used their existing 3 hours of entitlement.

Application Form
Eligible Faculty and Librarians should complete the attached form and submit it to their Chair in accordance with the relevant timeline.
Posted January 26, 2011