- June 25, 2009
- Professionals / Managers; (CC: Divisional HR Offices)
- Christina Sass-Kortsak, Assistant Vice-President, Human Resources
- New Voluntary Phased Retirement Program (Professionals / Managers)
Earlier in June, I wrote to all Professionals/Managers as a follow-up to the P/M information sessions hosted by Angela Hildyard on May 11 and 12. A copy of this memorandum (HR #25) is available on the HR & Equity website under HR Memoranda, 2008-09 at: http://www.hrandequity.utoronto.ca/news/memoranda/0809.htm
The purpose of this communication is to let you know that the Voluntary Phased Retirement Program was approved by Business Board at its June 18 meeting.
In conjunction with Business Board’s approval, the Voluntary Phased Retirement Program is now available to Professionals/Managers (P/M) in levels 1-5, Confidentials and USW appointed staff who meet the eligibility requirements.
A summary description of the Program is posted on the HR & Equity website at:http://www.hrandequity.utoronto.ca/news/voluntaryoptions.htm along with the application form and step-by-step application and approvals process.
Participation in the Voluntary Phased Retirement Program will be subject to Division Head approval, with Central Human Resources review before final approval is provided. Decisions will be based on operational needs and feasibility within the work unit.
Key features of the Program include:
- The Phased Retirement period may be from 6 months to a maximum of 2 years, at the end of which the participant must retire (no later than June 30, 2011).
- The final retirement date at the end of the phased retirement period is set and irrevocable once the agreement has been reached.
- Phased retirement can begin as early as 2 years prior to first eligibility for an unreduced early retirement pension (60/80 provision for administrative staff-appointed members), and no later than 2 years prior to the date at which the participant is required to commence receiving his/her pension under the Income Tax Act, currently December in the year in which the individual turns 71.
- During the phased retirement period:
- The participant works a reduced workload of between 50% and 90% FTE and receives a salary based on the actual reduced FTE worked.
- The participant accrues 100% pension service during the period of phased retirement, at the 100% nominal salary.
- The participant contributes to the Pension Plan at his/her part-time salary; the cost of the difference in employee pension contributions will be charged to the participant’s Department.
- The participant is covered by the sick leave and LTD plan based on his/her actual part-time salary received.
- The participant continues to receive the regular employer subsidy for all group benefit plans in which s/he participated prior to the start of the phased retirement, for the duration of the phased retirement period.
Questions concerning the Voluntary Phased Retirement Program should be directed to your divisional HR Office.
In my earlier communication, I also mentioned that we had developed two additional voluntary options, the Voluntary Unpaid Days Off Program and the Voluntary Temporary Reduction in FTE Program, which may assist Divisions in meeting budget restrictions. A summary description of these programs is available at:http://www.hrandequity.utoronto.ca/news/voluntaryoptions.htm
It is important to note that each Division has the discretion to make the Voluntary Unpaid Days Off and the Voluntary Temporary Reduction in FTE Programs available to eligible staff within their Division over the next two years, with any staff participation in either program ending June 30, 2011. Eligible staff would include Professionals/Managers (P/M) in levels 1-5, Confidentials and USW appointed staff.
If your Division elects to make either of these programs available you will receive further information from your Division or your Divisional HR Office.