EARLY RETIREMENT INCENTIVE PROGRAM.

Memorandum of Understanding

1. Estimated 100 Faculty Eligible with no more than “50” per year for “2” years

(AY 2009-2010)

(AY 2010-2011)

2. Eligibility to participate will be based on STRS Retirement Eligibility

30 YOS (years of service)

55 + 25 YOS

60 +  5 YOS

3.      One time window to elect – Spring 2009. Retirement eligibility based upon years of service at the end of Spring semester 2009.

4.      A maximum of three (3) per department OR 15%, whichever is greater per Academic Year for two (2) years

(AY 2009-2010)

(AY 2010-2011)

5.         Subject to the limitations set forth above (60 per year, 3 per department or 15% whichever is greater) eligible faculty (both bargaining unit members and non-bargaining unit faculty) who elect to accept the incentive may select in which one of the two years they will retire, provided that a faculty member electing to participate must retire before the first of the two (2) designated academic years at the start of which the faculty member has 35 or more years of STRS service credit.

           Selection of the “year” of retirement will be based upon the amount of full time continuous service at the University, with an individual with the greater service selecting first.  No changes in year selection after close of window. Where length of continuous service is equal, academic rank if unequal shall be taken into account, with the higher rank selecting first.  If rank is equal, the last four digits of the social security number will be compared, with the higher number selecting first.

            6.   Those who elect would receive “one-time lump sum” at time of separation based upon Spring 2008 base salary.

                              Base Salary X YOS @ UT x .02

                        Example: John Doe, PhD

                        $85,000 x30 YOS at UT x .02 = $51,000

   7.  During the first academic year following retirement, a retired faculty member may:

• Teach at part-time rate, otherwise no assignment given. (must apply for this option)

8. After one academic year of retirement, a faculty member may:

·        Return to teach three (3) classes or total equivalent of three courses each year for a maximum of three (3) years at 35% of Spring 07 base salary. (faculty member must apply for this option, subject to approval by employer) Courses must meet minimum enrollment requirements.

9. After one academic year of retirement, a faculty member may:

·        Return as “externally funded” Research Professor (funded by external grant(s), NOT funded by UT) with any compensation paid through external funding.

  10.   Faculty member may elect Health Care Account at $7,000 per year for two (2) years.

    11.  The proposed retirement incentive will comply with requirements of the Older Workers Benefit Protection Act, including the requirements for notification and releases.