January 6, 2003

What You Should Know and Think About

The last opportunity to take advantage of the full early retirement package that has been in place for the past few years is rapidly approaching. The deadline for applications is January 31, 2003 for those who are thinking of leaving on June 30, 2003. A significantly reduced early retirement package will be available in 2004. After that, the Collective Agreement makes no provision for early retirement allowances. The following is some basic information about both early and normal retirement.

Normal Retirement: The current retirement age is 65. This means that you are required to retire at the end of the academic year during which you reach your 65th birthday. If you are retiring this year, you should consult with the Pension Office to ensure that you select the options most appropriate for your situation.

Aside from pension options, the benefits available to retirees after normal retirement are:

•  semi-private hospitalization
•  supplementary medical (80%)
•  tuition assistance for dependent children under 25 or a spouse (so long as you served more than 10 years at Queen's)
•  basic life insurance initially in the amount of one times salary (1 X salary) but declining thereafter and with no premium [free]

Early Retirement (June 30, 2003): Anyone who is over 50 years of age and has been at Queen's for at least 6 years can apply for early retirement effective June 30, 2003. YOU MUST APPLY BEFORE THE END OF JANUARY, 2003. The complete details of this "early retirement" option are set out in Appendix M to the Collective agreement under Year 1. But here are some of the pertinent facts:

(A) Retiring Allowance - Early Retirees are entitled to a "retiring allowance" based on both their age and the duration of their service at Queen's. The following amounts are all based on early retirements as of June 30. If other dates are negotiated, the specific fraction may vary.

For those 60 years or younger (as of June 30, 2003)

•  with more than 26 years at Queen's, the allowance is 22 months nominal salary
•  with between 12 and 26 years at Queen's, the allowance is your nominal monthly salary times (15 plus .5 for each year after 12)
•  with 6 to 12 years, the allowance is 15 months nominal salary

After the age of 60, the retiring allowance (based on a June 30^th effective date) reduces as follows:

•  .80 at 61
•  .65 at 62
•  .50 at 63
•  .35 at 64

Note: A portion of the retiring allowance can be tax sheltered, but the amount depends on personal factors. Consult the Pensions Office and/or your own accountant for details.

(B) Benefits Until you reach 65 - People who take early retirement can continue to subscribe to supplementary medical coverage and semi-private hospital coverage. Group life insurance can be continued if converted within 31 days; otherwise it is reduced to one times salary (1 X salary). Dental coverage is not available.

(C) Trial Early Retirement - This provides the opportunity for a one year leave with an interest free loan of up to 65% of your salary. This gives you the option of taking early retirement after the leave (with all calculations done at the point of commencing the leave) or returning to work, so long as you give notice of your intention to return to work no later than 9 months after commencing the leave. If you take early retirement, any funds loaned will be deducted from the retirement allowance. If you return to work, any funds loaned must be repaid within 36 months.

Again, you should consult with the Pension and Benefits office to determine the exact calculations and options that apply to you.

Early Retirement (as of June 30, 2004): During the 2003/2004 academic year, there will continue to be an "early retirement" option if you are over the age of 55 years and have been at Queen's at least 10 years, but the "retiring allowances" are significantly reduced. YOU MUST APPLY BEFORE THE END OF JANUARY 2004.

(A) Retiring Allowance - Early Retirees are entitled to a retiring allowance based on both their age and the duration of their service at Queen's. The following amounts are all based on early retirements as of June 30. If other dates are negotiated, the specific fraction may vary.

For those 60 years or younger (as of June 30, 2004)

•  with more than 26 years at Queen's, the allowance is 16 months nominal salary
•  with between 16 and 26 years at Queen's, the allowance is your nominal monthly salary times (10 plus .5 for each year after 16)
•  with 6 to 12 years, the allowance is 10 months nominal salary

After the age of 60, the retiring allowance (based on a June 30^th effective date) reduces as follows

•  .80 at 61
•  .60 at 62
•  .40 at 63
•  .20 at 64

(B) Benefits Until you reach 65 - People who take early retirement can continue to subscribe to supplementary medical coverage and semi-private hospital coverage. Group life insurance can be continued if converted within 31 days; otherwise it is reduced to one times salary (1 X salary). Dental coverage is not available.

(C) Trial Early Retirement is NOT available in 2004.

NOTE 1: The allowances for 2004 are substantially less than those that apply to someone who takes early retirement in 2003. After that, the Collective Agreement makes no provision for early retirement allowances.

NOTE 2: Continuing and Continuing-track Adjuncts may take early retirement, but this option is not available to Term, Initial, or Renewable Adjuncts.

CALL QUFA (533-3033) OR The PENSIONS Office (533-6414).

EFFECTIVE JUNE 30, 2003 IS JANUARY 31, 2003.