March 2007

UGFA’s Position on Voluntary Resignation/Retirement Options

The University has, on several occasions, offered incentives (“buy-outs”) to faculty and librarians considering retirement. Following the recent statutory elimination of mandatory retirement, the concept of “early” retirement no longer applies in Ontario, but the Administration may still wish to encourage individuals to retire. Recently, the Administration contacted the Association to discuss the status of retirement incentives. We expect that Voluntary Resignation/ Retirement Options will be negotiated between the Administration and the Faculty Association during the coming collective bargaining process. The Executive of the Association has notified the University that the status quo shall remain in effect until a Collective Agreement is in place; further discussion shall occur as part of the negotiation process.

We have told the Administration the following.

UGFA agrees that the following practices reflect “past practices” and, according to statute, shall continue until the conclusion of a first Collective Agreement:

1. The administration may offer a “buy-out” of one month’s salary per year of service (up to a 12 month maximum), provided that the Member has served 10 years or more and is between the ages of 55 and 65. For those with less than 10 years the amount will be reduced.
2. For “phased” retirement, Members may commit to a period of reduced workload with an equivalent reduction in salary, while maintaining full benefits and a not-reduced retirement credit.
3. The Association believes that Members have the right to choose either of the above options or a combination of the two.

The Association advises its members to consider their options carefully prior to signing any agreement for voluntary retirement or resignation. Many Members have found it helpful to consult a personal financial advisor for assistance with retirement planning.