Retirement Workshop

Moratorium on Mandatory Retirement

Faculty RelationsJune 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 WaiversFree for BC ResidentsDependent 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 old @ point of entry At least 10 years full-time continuous

service @ 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

June30th NRD

Retirement Option begins July 1, 2008

June 30, 2007

December 31, 2007; may be

waived or extended to

March 31, 2008

December31st NRD

Retirement Option begins July 1, 2008

August 31, 2007March 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

Appointment50% 51-80%

Irrevocable Notice of

RetirementYes Yes No

Head/Dean Approval Required

No Yes Yes

Age Restriction Minimum 60 yrs of age No

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: www.hr.ubc.ca/faculty_relations/retirement/ The Memorandum of Agreement Re:

Mandatory Retirement The Collective Agreement,

Agreement on Reduced Appointments

Faculty Appointment Options spreadsheet

Notice Requirements for Retirements, Options, and Resignations

For Assistance…

Our website (cont’d): www.hr.ubc.ca/faculty_relations/retirement/ Frequently Asked Questions

For Heads For Faculty Association Members

Template letters for the cohorts scheduled to retire in June 2007 and December 2007

Call us!