FACULTY LUMP SUM BENEFIT
FREQUENTLY-ASKED QUESTIONS (FAQs)
From time to time, various questions arise concerning the faculty lump sum benefit ("Benefit") that is described in Section 9.8 of the collective bargaining agreement in effect between the University and the American Association of University Professors, University of Delaware Chapter ("CBA"). Given that many faculty members have the same questions about this Benefit, we thought it might be helpful if we provided these frequently-asked questions, and their answers, to all faculty members.
What am I required to do in order to get the Benefit?
In order to get your Benefit, you must: (1) enter into a Retirement Agreement with the University, and (2) continue employment with the University at least until you meet the age and service requirements for retirement. The Benefit will be paid to you within the month following the date that you have met requirements (1) and (2).
When must I enter into my Retirement Agreement?
You should provide written notice to the Vice President for Finance & Administration at least six months prior to the anticipated beginning date of phased retirement or retirement leave, as described in Section 9.8 of the Collective Bargaining Agreement (July 1, 2010 - June 30, 2013). Generally, you may elect a one-semester retirement leave at full salary, or a full year leave at seventy-five percent salary, ending on the date of retirement. (Please note that both leave options include full-time University benefits; however, some benefits such as the retirement savings plan, life and disability insurance will be adjusted in relationship to any change in salary.) In place of a retirement leave, you may elect a phased retirement of three years in length (see Section 9.8 of the CBA for details).
May I choose any Retirement Date?
The University encourages a retirement date of May 31, August 31, or January 15 if you are on an academic-year appointment and June 30 or December 31 if you are on a fiscal-year appointment.
May I revise the terms of my Retirement Agreement once it is signed?
No. After you have entered into your Retirement Agreement with the University, the terms of your Retirement Agreement cannot be changed for any reason.
When will I receive the benefit?
Any full-time faculty member signing on or after January 1, 2011 shall receive, within the month following the signing of their retirement agreement (or, if not yet eligible for retirement, within the month following the date that they qualify for retirement), a one-time payment at the rate of two and one-half percent of annual base salary for each year of University service.
Will I still get the Benefit if I quit working for the University after I enter into my Retirement Agreement but before my agreed-upon Retirement Date?
If you quit working for the University before your Retirement Date you will not get the Benefit, even if you have met the age and service requirements as of the date you terminate employment.
What if I die after I sign the Retirement Agreement but before my Retirement Date?
If you die after signing the Retirement Agreement but before your Retirement Date, your designated beneficiary or estate will get your Benefit. In addition, your surviving dependents will be eligible for the other retiree benefits (such as health coverage) provided for under the CBA if, on the date of your death, you meet the age and service requirements set out in the CBA.
How do I designate a Beneficiary?
You designate a beneficiary by completing a Faculty Lump Sum Benefit Beneficiary Designation Election Form ("Election") and filing the Election with the Human Resources Department. You will be required to complete this Election at the time that you sign your Retirement Agreement. You may change your Election at any time by completing and filing a new Election with the Human Resources Department. The Election on file with the Human Resources Department at the time of your death will be the form that is followed.
May I defer all or a portion of my Benefit under the 403(b) and/or 457(b) Plans?
Yes. You may defer all or a portion of your Benefit under the 403(b) and/or 457(b) Plans as long as you have not already met the contribution limits for the year, as explained under the terms of each Plan. You must notify the Human Resources Department in writing, at the time of signing your retirement agreement, if you want to defer all or a portion of your Benefit under the 403(b) and/or 457(b) Plans.
Who do I contact if I would like to enter into a Retirement Agreement or have questions about electing phased retirement in lieu of retirement leave?
You should contact Sherry Acuff by e-mail (firstname.lastname@example.org) or by phone (831-2171) when you are ready to enter into, or if you have questions about entering into, a Retirement Agreement. You may also contact Sherry Acuff if you have questions about electing phased retirement in lieu of retirement leave.
Prepared: October 16, 2009, revised February 16, 2011
Questions? Contact the Benefits office at (302) 831-2171 or email email@example.com