Human Resources

Academic Staff Voluntary Retirement Program 2013 (ASVRP 2013)

The Board of Governors of the University of Lethbridge approved an Academic Staff Voluntary Retirement Program (ASVRP 2013) at its January 24, 2013 meeting. Details of the approved program are included, with the application form, by clicking on this link.

Click here for a pdf copy of Frequently Asked Questions or you can scroll below to view the FAQs.

1. Given the current budgetary situation why is the University putting forward this retirement program at this time?

a.  It balances faculty renewal, or professorial sustainability, with financial stability. At the present time we have some one-time monies to allow us to re-invest in the professorial ranks as well as the curriculum. However, we know in the future there is going to be less money flowing to the University while our costs continue to rise, so the one-time dollars currently available are not likely going to be there in the future.

b.  The structure of the program reflects the large contributions of those individuals who are eligible for this voluntary retirement program.

c.  Essentially we are being pro-active and we have the one-time monies now to be able to finance such a program. This allows the University to reinvest in the professorial ranks as well as the curriculum.

2. What is your view on the replacement of positions?

a.  There is not likely going to be a 1:1 replacement but rather replacement will be done on a case-by-case basis.

b.  We are very aware of the need to reinvest in the professorial ranks but this has to be balanced with financial sustainability.

c.  Option #2 of a phased retirement approach was included, in part, based on the recognition of the need to keep senior faculty members engaged for their leadership, as mentors for new faculty and as supervisors for current graduate students.

3. Why is the program only being offered to faculty?

a.   In addition to the reasons stated in #1 there can be a substantial difference between the current salary of a long-term faculty member and a new faculty member.

b.   There is a risk of not being able to replace the administrative staff appropriately in the tightening labour market.

c.   There was strong uptake in the 2009 voluntary retirement program from other employee groups, resulting in a loss of experienced staff which we are not sure we can withstand so soon again.

4. Why is this program being offered when one was offered in 2009?

Few faculty were interested in the 2009 voluntary retirement program and the challenges facing the University in terms of long-term financial sustainability are even clearer now.

5. What considerations, outside of the financial need, were taken into account when offering Option #2 (phased retirement) over the 3 years?

a.   The decision on when to retire is often very difficult and is obviously a personal decision. The gradual reduction from full time was an attempt to make the transition less difficult.

b.   Faculty are likely to have ongoing commitments to students, teaching assignments, etc. that need to be addressed.

c.   Three years was viewed as a reasonable amount of time to wrap up those commitments and to provide the individual member with as much flexibility as possible.

d.   The three years also provided incoming faculty members with the opportunity for mentorship from their senior colleagues.

6. What would happen to those students who may be impacted by the sudden departure of a Member?

a.   We know that each Member takes this obligation seriously and that there is a clear obligation on the part of the University to ensure we meet our obligations to the students in the completion of their programs.

b.   The Dean/University Librarian and the Member would have to ensure, as part of the decision for both parties, that we are able to meet our respective obligations.

7. Has the elimination of mandatory retirement had an impact?

This is difficult to answer but given the experiences in other jurisdictions the elimination of mandatory retirement has had a minimal impact on other universities.

8. Are there other options regarding retirement from the University?

There are other retirement options available under the Handbook (Article 16.07). If you are interested in discussing other options, please contact your Dean/University Librarian to have this conversation.

9. Is the 80 factor a firm line?

a.  Yes, for the program it is one of the criteria. However, there are certainly other options available under the Handbook. The best place to start, if you don't quite have the 80 factor, is to have a conversation with your respective Dean/University Librarian.

b.  If you have any questions regarding whether or not you have your 80 factor please contact your Dean/University Librarian or Barb Thomsen in Pension and Benefits (403.329.2379).

10. What options do I have with regards to the lump sum?

a.  The circumstances of each Member will be unique so it is best to set up a time to meet with Barb Thomsen in Pension and Benefits (403.329.2379) to address your specific questions.

b.  Once you meet with a representative from Pension and Benefits you will have the necessary information to seek professional financial advice from your personal financial advisor.

c.  You are encouraged to talk to your financial and/or tax advisor when making your decisions.

11. Is there a lump sum payment in Option 2 (phased retirement)?

There has been some confusion regarding the payments under option 2. The 'work' column will be paid on a monthly basis and the 'lump sum' amount needs to be taken as one payment. So, using the example E in the ASVRP package, the first year you would receive a monthly payment of $3,750.00 plus a one-time lump sum of $35,000.00.

12. Will any Benefits be available after retirement?

No. However the cost of purchasing your own benefits was factored into the amount of the ASVRP when the lump sum amount was determined. There are options for Members to purchase their own benefits coverage. Please contact Pension and Benefits for more information.

13. How much is the University hoping to save?

Given this is a voluntary program there is no pre-determined, or anticipated, amount of savings. Again, the program is being offered to pro-actively balance the need for professorial sustainability with long-term financial sustainability.

14. If I am accepted for this package, am I restricted from future employment opportunities at the University of Lethbridge?

a.  There are no restrictions on any future employment at the University, however, if the University offers another voluntary retirement program in the future, you will not be eligible for it.

b.  It is not anticipated that another voluntary retirement program will be offered by the University of Lethbridge within the next ten (10) years.

15. Are other universities under-taking similar measures?

Each institution is planning scenarios to deal with their own unique situations and how the financial uncertainty will impact their institutions.