The findings of this survey show that the context and environment in which decisions about faculty retirement are being made is marked by both consistency and variation. Consistency is evident in the attempts by institutions to manage the number of faculty members retiring by offering retirement incentives and phased-retirement programs. But variation in institutional policies and practices regarding retirement suggests that where an individual faculty member retires from matters. Among the major findings of the study are:
- 1. Although the shift from defined-benefit to defined-contribution retirement programs continues, the default plan, if there is one, is defined benefit.
- 2. The number of institutions that reported having implemented phased-retirement programs was larger between 2000 and 2006 than between 1994 and 1999.
- 3. High percentages of responding institutions reported that recruitment and retention of faculty were important (over 90 and 80 percent, respectively), but only 20 percent reported being concerned about retiring older faculty.
It is important to continue to monitor and systematically collect information on retirement policies and practices across higher education to help individuals and institutions navigate the maze we now know as retirement.
Notes
1. A question was also included to aid in the calculation of retirement rates for the 2004-05 academic year. Back to text.
2. This requirement may change now that the Pension Protection Act of 2006 has removec barriers that prevented companies from automatically enrolling their employees in defined contribution plans. Back to text.
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(2/15/07)