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Policy number: 2.16

Policy section: Academic Affairs

Revised Date: December 16, 2019

1.  Policy Statement

It is the policy of the University to enter into a voluntary retirement agreement with a faculty member when that agreement is in the mutual best interest of the employee and the University and to recognize faculty with the emeritus designation based upon individual distinction and quality of contribution and service to the University.

2.  Purpose

The purpose of this policy is to outline the process for emeritus designation and to provide information on retirement programs available to eligible faculty members who retire by mutual agreement with the University.

3.  Definitions

For the purposes of this policy, the following definitions will apply:

1. Creditable service is defined as active service as a tenured member of the full-time University faculty. Approved leaves of absence may be counted toward creditable service if the leaves were paid.
2. Benefit base salary is the annual contract salary exclusive of any extra compensation. Extra compensation for teaching in the summer or intersessions or pay for extra assignments are excluded.

4.  Emeritus or Emerita Designation

The title "Emeritus" or “Emerita” may be granted to tenured members of the faculty upon retirement. The award of this designation is not automatic. Recommendation for conferring this title is based upon individual distinction and quality of contribution and service to the University. Prior to retirement, the faculty member's department will initiate consideration of Emeritus or Emerita designation and transmit its recommendation to the Dean. The Provost will solicit these recommendations from the schools. These recommendations are subject to the approval of the Provost and the Board of Trustees.

The University cherishes the contributions to its common life provided by its emeriti faculty. Upon retirement, emeriti faculty will be granted parking privileges on campus, use of the library and other appropriate research support, and admission to or discounts for University athletic and cultural events. Emeriti faculty are also encouraged to continue participation in convocations, academic ceremonies and processions. The Office of Research Administration will continue to serve emeriti faculty desiring to apply for grants and contracts. Tuition benefits are available to retired faculty, spouses, and eligible dependent children as specified on the Human Resources website. Emeriti faculty will be granted membership in the Faculty Club with no annual membership fees, and groups of emeriti faculty may request and use rooms on the campus for meetings. Retired faculty members may continue to use the Dedman Center facilities and equipment on the same terms as current faculty and maintain their SMU e-mail address.

5.  Application for Retirement

Application for retirement under the options described below must be made in writing to the appropriate Dean at least six (6) months prior to the end of the fiscal year (May 31) in which retirement is sought to occur or by the deadline of any incentive retirement program. Retirement under these options, when approved, may go into effect as early as the first day of the fiscal year next following the date of the agreement. The consideration of applications and their approval for this retirement policy will be administered by the Provost. The availability of these retirement options in no way entitles or guarantees the provision of the benefit to faculty members that apply. The Provost will consider each faculty member’s petition individually relative to the requirements for the appropriate academic program and financial considerations. Administrative approval may be granted after determining that the early retirement incentive request is in the mutual best interest of the employee and the University.

Faculty choosing to retire not under any of the options described below should submit a resignation letter to the Dean indicating the date of retirement at least six months in advance, if possible.

6.  Phased Retirement

Full-time tenured faculty members, age fifty (50) and above, who have at least ten (10) years of creditable service with the University may request Phased Retirement Status.

1. Assignment: The faculty member requesting the Phased Retirement option will accept a reduced assignment during the transition period with the particulars agreed upon in consultations with the appropriate Dean and Department Chair. The assignment will be for a maximum of 75% and for a minimum of 25% of their prior workload (or such higher percentage so as not to result in a deemed “separation from service” under the Internal Revenue Code).
2. Compensation: The retiree’s salary will be a percentage of the final full-time annual benefit base salary as agreed upon by the Provost and appropriate Dean. Typically, the retiree will receive proportionate compensation based on the new workload.
3. Duration: The maximum duration of the Phased Retirement period will be three (3) years. The Provost may approve a longer phased retirement period in exceptional circumstance.
4. Tenure: The relinquishment of tenure takes effect at the end of the transition period. The individual will use his/her normal academic title during the transition period.
5. Benefits: The faculty member may continue to participate in the tuition, group medical, dental, and life insurance programs on the same basis as full­time active employees during their phased retirement period as long as the new workload is 50% or more of the original workload. However, notwithstanding the above, group medical, dental, and life insurance benefits will be discontinued if the retiree accepts employment outside of the University where group benefits are provided. Every effort will be made to provide other benefits normally accorded to the full­time professoriate, i.e.: shared office space and shared secretarial support during the period of Phased Retirement.

Once the phased retirement period ends, the faculty member will be eligible for retiree medical benefits only if he/she qualifies as a Retiree under the University’s Retirement Policy then in effect. Currently, to so qualify, at the time of retirement, the faculty member must be at least age 60, have 10 years of University employment, and have been enrolled in the SMU Group Medical Plan for at least 5 consecutive years immediately prior to retirement.

7.  Incentive Retirement Programs

The University may announce from time to time incentive retirement programs for faculty age sixty (60) and above, who have at least ten (10) years of creditable service. These programs are strictly voluntary and will only be available pursuant to discrete temporary window periods (not to exceed one year).  As required by IRS Regulations, any such program shall not be part of a pattern or practice of repeated, multiple or consecutive similar programs spanning many years.

1. Compensation: The Office of the Provost will provide a specific illustration of the dollar value of this benefit to an individual faculty member. Any compensation payable pursuant to the discrete window period will be limited to the lesser of the prior year’s benefit base salary or the then current IRS qualified plan annual compensation limit and will be fully paid by two years after the separation from service. If the benefits are age-based, then to the extent required by the Age Discrimination in Employment Act, all otherwise eligible faculty members will have at least a one-time opportunity (lasting at least 180 days) to request the maximum benefit, regardless of age.
2. Tenure: The relinquishment of tenure takes effect when the faculty member officially retires as specified in the retirement agreement.
3. Benefits: The faculty member may continue to participate in the tuition, group medical, dental, and life insurance programs on the same basis as full­time active employees, for such period, if any, as may be negotiated and agreed upon by the University, until the final date of retirement. However, notwithstanding the above, group medical, dental, and life insurance benefits will be discontinued if an early retiree accepts employment outside the University where group benefits are provided. The faculty member will be eligible for retiree medical benefits only if he/she qualifies as a Retiree under the University’s Retirement Policy then in effect. Currently, to so qualify, the faculty member must be at least age 60, have 10 years of University employment, and have been enrolled in the SMU Group Medical Plan for at least 5 consecutive years immediately prior to retirement.

8.  Continued Post-Retirement Activity

A retired faculty member is eligible to serve on a fixed-term basis (without tenure) for whatever services, compensation, and percentage of effort agreed upon between the individual and the Dean, subject to approval of the Provost. The percentage of effort must be 50% or less and the retired faculty member is not eligible for benefits.

9.  Other Conditions

1. Other Examples: The above examples are not meant to be exhaustive. Other forms of retirement or early retirement may be agreed upon.

1. Rights of Survivors: The retiree or early retiree may elect to receive retirement benefits under a series of approved options which may or may not include payment to surviving beneficiaries. The exercise of various options may alter the rate of compensation received. The retiree and University will agree upon the option elected.
2. Pre­Retirement Counseling: Pre-retirement Counseling will be made available to those faculty members nearing retirement age, as individual benefits, account accumulations, and other income factors will vary widely. All monetary matters specific to the benefits program should be discussed in consultation with the Personnel Benefits Office.
3. Legal Obligations: Any mutual agreement reached between a faculty member and the University will be an expression of the complete understanding between the parties and will be reduced to writing and signed by the faculty member and the Provost. Only the terms and conditions of the written document will be honored. Each faculty member wishing to take advantage of this policy will have different economic and tax circumstances to be evaluated. Therefore each faculty member is encouraged to seek the counsel of his/her own financial and legal advisors prior to entering into an agreement pursuant to this policy.
4. As a result of any mutual agreement pursuant to this policy, the University may be obligated to perform certain acts or duties pursuant to the laws and regulations of federal, state and local governments as they may exist now or in the future. The acts or duties of the University may include income reporting or withholding as well as other acts or duties, depending upon the circumstance of each case.

10. Questions

Questions regarding this policy should be directed to the Office of the Provost.

Revised: December 16, 2019

Adopted: June 1, 1994