Cornell University Phased Retirement Program for Endowed Faculty
The University’s Phased Retirement Program for Endowed Faculty permits eligible full-time tenured faculty members in the endowed colleges at Ithaca to reduce their teaching, research, and administrative duties prior to retirement. This Program allows a gradual transition of a specified duration of time (not to exceed five years) to retirement for both the faculty member and his or her department and allows for a planned recruitment of new faculty members. This Program was developed with the assistance of the Committee on the Professional and Economic Status of the Faculty, endorsed by the Dean’s Council and the Provost.
Eligibility
- Prior to July 1, 1998, phased retirement was available to all full-time tenured faculty members who were between the ages of 60 and 70 and had held full-time appointments at the University for at least ten years.
- From July 1, 1998 to June 30, 2000, phased retirement was available to all full-time tenured faculty members above the age of 55 who have held full-time appointments at the University for at least ten years.
- Effective July 1, 2000, phased retirement was available to all full-time tenured faculty members between the ages of 55 and 70 who have held full-time appointments at the University for at least ten years.
- Effective July 1, 2000, any full-time tenured faculty member who fails to qualify for a phased retirement agreement under point 3 solely because the individual reaches ten years of service after age 70 will be eligible for a phased retirement agreement for twelve months after he or she achieves ten years of service.
Interested faculty members should discuss plans with their department chair and/or dean’s representative to develop a mutually agreeable set of duties, appointment dates and duration. Appointments must be at least half-time for one term each academic year, and normally should not exceed half-time for the full academic year.
Participation
Once a formal written agreement has been completed, the faculty member’s
department will be required to submit notification of the member’s
change in employment status by completing an Universal Personnel Action
Form (UPAF) and sending it to Records Administration, Pine Tree Road,
East Hill Plaza. This should occur at least 90 days in advance of the
beginning of the phased retirement period. Records Administration will
then see that the appropriate offices are notified to process the phased
retirement agreement.
Benefits Information
Certain benefits are provided as if the faculty member were full-time
while other benefit programs are modified based upon the actual appointed
time for the faculty member.
Health Insurance
Coverage will continue as if the faculty member were full-time.
Dental Insurance
Coverage will continue as if the faculty member were full-time
Cornell University Retirement Plan
If the faculty member’s appointment is for one-half time or more,
the University will make contributions to the retirement account based
on the member’s full-time equivalent salary.
If the faculty member’s appointment is for less than one-half time, the University will make contributions to the retirement account based on 20% of the actual phased retirement base salary.
The faculty member may elect to receive distributions from the retirement account during the phased retirement period. Phased retirement participants should contact the investment vendors directly for the appropriate distribution forms and related materials (TIAA-CREF: 800-842-2776 or Fidelity: 800-343-0860). Representatives from both investment vendors are on campus frequently to provide personal counseling services for retirement planning. Appointments can be made by calling TIAA-CREF: 877-209-3144 or Fidelity: 800-642-7131.
Cornell University Tax Deferred Annuity Plan
Phased retirement participants may continue making voluntary pre-tax contributions
to their accounts in the Tax Deferred Annuity Plan based upon their actual
phased retirement salary. These contributions are subject to regulatory
limits.
Participants who are at least age 59 1/2 may elect to receive distributions from any and all retirement accounts during the phased retirement period. Participants who are younger than age 59 1/2 may only elect to receive distributions paid out over 10 or more years or over their life expectancy. Loans and financial hardship withdrawals are available at any age. Contact the investment vendors directly for the appropriate distribution forms and related materials (TIAA-CREF: 800-842-2776 or Fidelity: 800-343-0860). Representatives from both investment vendors are on campus frequently to provide personal counseling services for retirement planning. Appointments can be made by calling TIAA-CREF: 877-209-3144 or Fidelity: 800-642-7131.
Basic Life Insurance
If the faculty member’s appointment is one-half time or more, basic life
insurance coverage will continue based upon the member’s full-time equivalent
salary. The basic life insurance coverage provides one-half of the member’s
full-time equivalent salary up to a maximum benefit of $50,000.
Group Universal Life (GUL) Insurance
The faculty member may elect to continue his/her full amount of Group
Universal Life (GUL) coverage. Premium payments for this coverage will
continue to be made by payroll deduction.
If the faculty member’s appointment is less than one-half time, basic life insurance coverage will continue based upon one-half of the member’s actual phased retirement salary up to a maximum of $50,000. The faculty member may elect to continue his/her full amount of Group Universal Life (GUL) coverage.
Personal Accident Insurance
If the faculty member’s appointment is for one-half time or more,
coverage will continue based upon the level of coverage that the member
has chosen, however, amounts above $250,000 cannot exceed ten times the
member’s full-time equivalent salary.
If the faculty member’s appointment is for less than one-half time, coverage will continue based upon the level of coverage that the member has chosen, however, amounts above $250,000 cannot exceed ten times the member’s actual phased retirement salary.
Long Term Disability Insurance
The faculty member’s coverage will continue but will be provided based
on the member’s actual phased retirement salary on the date of disability.
Cornell Children’s Tuition Scholarship
Benefits will be provided as if the faculty member were full-time.
Select Benefits
The faculty member’s coverage and payroll deductions will continue
based upon the level of coverage that the member has chosen, but in no
case may deductions from paychecks to the Select Benefits account exceed
50% of the paycheck amount. Inquiries about Select Benefits should be
directed to Benefit Services at (607) 255-3936.
Auto/Homeowners Insurance
The faculty member’s coverage and payroll deductions will continue
based upon the level of coverage that the member has chosen. Inquiries
about auto and homeowners insurance should be directed to Marsh@WorkSolutions
at (800) 553-4861.
Long Term Care
The faculty member’s coverage and payroll deductions will continue
based upon the level of coverage that the member has chosen. Inquiries
about long term care should be directed to CNA toll free at (866) 234-9031.
Other Payroll Deductions
Any other payroll deduction benefits will be unaffected as long as the
faculty member continues to receive pay from the University.
For More Information
Contact Benefit Services at (607) 255-3936, benefits@cornell.edu.
The Phased Retirement Program is governed according to legislation adopted by the Executive Committee of the Board of Trustees of Cornell University and may be altered, amended or eliminated with the approval of the Board of Trustees. Every attempt has been made to ensure the accuracy of this summary, however, in the case of any inconsistency between this summary and the legal documents for Cornell University’s benefit programs, the legal documents will prevail.