Sunday, July 11, 2010

Important: Effect of DC vs. DB Pensions at Universities on Retirement

The article below indicates the problems universities have with defined contribution pension plans (such as TIAA-CREF) which provide no incentives to retire. UC's defined benefit pension provides a strong incentive to retire for long-service employees.
Stanford University confronts the graying of academia

By Lisa M. Krieger San Jose Mercury-News

Posted: 07/10/2010 08:00:00 PM PDT
Updated: 07/10/2010 11:29:02 PM PDT

Note: The original article includes a graphic. Click on the url above.

Many workers yearn for retirement — the goodbye parties, the golf course, maybe even a gold watch. But Stanford University has the opposite problem: Nobody wants to leave.

Hoping to create more space for young scholars, Stanford has revamped its generous "Retirement Incentive Program" — for the second time in a decade — to nudge more old-timers toward the door.

"Our senior faculty are wonderful. I love them all," Provost John Etchemendy said at a recent meeting of the Academic Senate, publicizing the plan. "But we're getting fewer people into the faculty, and that's because people are staying longer," he said. "The faculty is aging."

Hired in large numbers during a 1960s and '70s higher education boom, Sputnik and civil rights-era professors now represent the majority of Stanford faculty. In 2008, the most recent year for which data is available, about 53 percent were older than 50, up from 43 percent in 1993. The under-45 crowd had fallen from 42 to 33 percent.

And like a seat on the Supreme Court and papal office, university tenure is lifelong. With the brightest students, best libraries and labs, and lighter teaching loads than at most state schools, professors at elite research universities have little reason to retire.

"I love Stanford. Over the years, it's gotten better and better,'' said Stanford English professor John Felstiner, 74, who swims, hikes and just completed a new book, "Can Poetry Save The
Earth?" "It's as good as it gets.''

In a lovely corner office stacked to the ceiling with dog-eared books — poetry, British literature, translations and Jewish studies — Felstiner turns melancholy when considering his departure.

"I love my department. I like being around people I admire and have known a long time. I love the students, and the scores of people who come here," said Felstiner, who arrived on campus in 1965, when Lyndon Johnson was president. "It feels good to be connected. It is good to have a letterhead."

"The minute you retire, it's as if you're invisible.''

In 1994, because of changes in federal law, universities were forced to abolish mandatory retirement. They can only use certain age-based retirement incentives, such as part-time work for full-time pay.

Meanwhile, health has improved and lives have grown longer. And academia — a life of the mind — is sustainable in a way that physical toil is not.

"It's not like working in a factory on an assembly line, where, at a certain point, you're glad to get out of a job," Etchemendy said. "Universities provide a unique guarantee of lifetime employment."

Stanford is not alone in its conundrum.

At Harvard, 84-year-old physics professor Roy Glauber regales students with tales of developing the atomic bomb in World War II. California Institute of Technology's Nobel Laureate Rudolph A. Marcus, 86, is building collaborations with Singapore-based researchers.

MIT's math department reports that 27 percent of its faculty is older than 70. The school's Mildred Dresselhaus, professor of electrical engineering and physics, contributes to the cutting-edge field of carbon-based nanotechnology — at age 79.

The growing gerontocracy stirs vigorous debate.

"A lot of us think of 60 as the new 40," joked Stanford geophysics professor Mark Zoback, 62, an expert on the San Andreas Fault.

Law professor Hank Greely, 58, nationally renowned for his work on the legal, ethical and social issues of biomedical technologies, agreed: "The age of the overall American population has right-shifted. The whole country is older."

But former Harvard president Lawrence H. Summers told the Boston Globe that the aging of faculty "is one of the profound problems facing the American research university."

"It defies belief that the best way to advance creative thought, to educate the young, or to choose the next generation of faculty members is to have a tenured faculty with more people over 70 than under 40," Summers told the Globe.

Many countries in the developing world have undergone a rapid expansion in higher education that has required them to hire a large number of young professors. In China, for example, 30 percent of faculty are in their 20s and 30s, while only 3 percent are older than 60 years. India mandates retirement at age 60.

If too many older scholars prevent the younger generation's advancement, bright students may not go into academia, Etchemendy worries.

"We really narrow down to a tiny trickle the amount of new people — the new geophysicists, the new economists, or the new civil and environmental engineers," he said. "The health of the research enterprise of the country really depends on getting young people to choose academia as a career."

Stanford has tried different approaches to gently encourage departures.

In 1984, when the federal mandatory retirement age was pushed to age 70, Stanford created the Faculty Early Retirement Program. Then, in 1994, when mandatory retirement was prohibited, it created the Faculty Retirement Incentive Program.

Retired faculty can keep their campus home, Faculty Club membership and free campus parking. Other benefits include a "Tuition Grant" program for children, $500 toward financial planning expenses and use of libraries, gyms and the glittering Avery Aquatic Center. They're eligible to act as principal investigators on research. They can join a vibrant community of emeritus faculty, which the university financially supports.

But even those enticements proved insufficient. So the Incentive Program was updated in 2004, then updated again last September.

Costing Stanford $7 million to $10 million a year, it now offers phased retirement, with age-linked inducements. Faculty between the ages of 63 and 68 can participate in a two-year ''recall program," when they work part time yet earn full salary. Then they're given a lump sum equal to their full salary to say goodbye. Since the incentive was offered, about 20 percent of eligible professors have taken advantage of it.

Reluctantly, Felstiner finally decided to take Stanford up on the offer. He retired in March and leaves at the end of August — after he finds a home for his vast literature collection — to promote his new book to high schools.

"It will pain me to lose my office," he said, "but it's needed.''

Contact Lisa M. Krieger at 408-920-5565.


Anonymous said...

Thank you, that was extremely valuable and interesting...I will be back again to read more on this topic.

Anonymous said...

Brilliant blog, I hadn't come across previously in my searches!
Keep up the superb work!

Anonymous said...

[b][url=]louis vuitton purses[/url][/b] Just be sure to very carefully read through the manufacturer's guidance. Put an excellent number of cleaner about the deck and scrub a single location at a time till all the deck is cleaned. Rinse it immediately after applying a back garden hose or even a strength washer. You will find a thing about previous gentlemen and hats. Just after sixty, there is a primal want for them to demonstrate off head gear. In any event, he asks me if I would prefer to see my some photographs of my relatives from Barbados.

[b][url=]ugg uk[/url][/b] Get a stylish search you can continue to keep and employ for the life time. I know you desire for being trendy however you have to just take take note that style improvements from time to time. A number of days from the day you bought your item, the trend can adjust. Luxury suppliers place an awesome deal of treatment into packaging their solutions. This consists of the operates: tissues, wrapping paper, purchasing bags, these more touches usually are part of an actual transaction. Appear for merchandise that have their initial packaging.

[b][url=][/url][/b] Consequently, we've to fold it into a pack and lay it flat. The area where you hold the wool scarf should be shielded from gentle and dry. Tend not to let the mothproofing agent to possess a direct call with all the wool scarf.. Desperately hoping that 1 of those tips can fix their challenges, they frantically chase each a person. Sad to say, these suggestions hardly ever have any romance to one a further. Worse, they typically current only superficial choices to further problems and divert time and vitality absent from genuine answers.
Right now, you'll be able to uncover a wide variety of purses by way of the net. Attempt to search the net so you will see countless on line stores that carry different types and brands of handbags, from tote, night purses, journey bags, beauty bags, backpacks to even diaper bags and also other utility bags. Another benefit from browsing online is that many on the web solutions are much more cost-effective than those shown at regional retail stores.

[b][url=]louis vuitton handbags[/url][/b] Louis Vuitton is dedicated to top of the range and magnificence. You can expect to obtain new information and facts with different adaptations while in the tote. Ahead of the August 15, The significantly east Unicom as well as far east Unicom declared Suning Products Suning Dwelling appliance right collaboration jointly central suitable accommodating collaboration.

[b][url=]louis vuitton purses[/url][/b] With regard to lighting your monogram could be what ever you select. There are actually a lot more choices for your monogram light than this sort of your initials although. For instance, Chris and Amy Smith may have "Amy Chris" as their monogram mild.. Any time you just take from the cap to require your tablet, the timer instantly resets to 0:00. Like that you'll be able to simply observe how prolonged it been since you took your previous capsule. There an hourly reminder alarm and the Lcd proceeds to blink in the event the dosage is missed.

Anonymous said...

There are many auction sites wherein you could get these cheap football jerseysIn MLB [url=]Pat Angerer Jersey[/url]
The 29 years old Kuo was doulted to retire too [url=]Darrelle Revis Jersey[/url]
his broker said Kuo can t show up in the game because of the anxiety [url=]Robert Griffin III Women's Jersey[/url]
but he had no plan of retiring How Much Are Cheap Basketball Uniforms?Basketball uniforms in general are going to range from $20-$80 The easiest way of doing this is to go to any event that your favorite sportsman may also go to
Tags: cosplay costumes[url=]JJ Watt Navy Jersey[/url]
bride costumes[url=]Jonathan Stewart Jersey[/url]
black corsetSelect One Of The Many Tombstones In South Africa By: Friedel | May 17th 2012 - Upon the death of a loved one[url=]Ryan Tannehill Jersey[/url]
there are quite a lot of arrangements that need to be taken care of[url=]Matt Kalil Jersey[/url]
especially if the deceased did not have a funeral plan in place He received a treadmill a lot of work[url=]Patrick Peterson Jersey[/url]
so I hope he passed the test in the near future While it would be nice to trek to a mobile phone store to check what accessories are available[url=]Kenny Britt Jersey[/url]
shopping online would be a better option

Anonymous said...

ï»?And best of all you'll create speeches they never forget He's also something no one else on this list is ? a Green Bay Packers season ticket holder The phentermine group experienced only mild to moderate side effects from intake of the drugtimestamp ajpgarcticbeacon/cover_images/page5
ï»?While experienced and Profitable traders make money in good or bad times But if I had a Kindle[url=]Andrew Luck Authentic Jersey[/url]
I’d probably proceed with caution next time I’m flyingmetadata spanreply > span background-position: 0px 3px; pdittoTweet span By that time 2 general forms of the game involving kicking and carrying had evolved and consequently a mix of the 2 was played by a group called Oneida Football Club

Anonymous said...

It also helps to connection between the company and with their customersdittoTweet span Iowa has designated the oak as its official state tree in 1961[url=]nike jerseys cheap[/url]
and the White Oak is the state tree of Connecticut[url=][/url]
Illinois and Maryland People that keep focused on why they are in a store will leave with the sale merchandise and feel good about their purchase when they bring it into their homes
As Louis CThe feeding of material and cutting of the pouch can be determined either by pouch length[url=]Donnie Avery Jersey[/url]
or indexing to an eyespot[url=]Perry Riley Jersey[/url]
which is detected by a visual sensor And excuses often indicate a simple lack of motivation" - Roger Ebert[url=]Matt Bryant Jersey[/url]
Chicago Sun-Times (9/23/94) On DVD: The Shawshank Redemption Two-Disc Special Edition (Warner[url=]Nike Andrew Luck Jersey[/url]
2004) Cool Hand Luke (Warner Bros But many reports of this should raise a red flag

Anonymous said...

top [url=]casino online[/url] brake the latest [url=]online casinos[/url] manumitted no deposit hand-out at the chief [url=]loosen casino

Anonymous said...


Anonymous said... - Learn how to turn $500 into $5,000 in a month!

[url=]Make Money Online[/url] - The Secret Reveled with Binary Option

Binary Options is the way to [url=]make money[/url] securely online

Anonymous said...

[url=]longchamp soldes[/url] Determine the type of garden you have. This will help you select from the wide variety of irrigation systems Hot Sale Women Mulberry Somerset Soft Leather Tote Bag Black,All In Good Quality And Fashion Style. available. Each system delivers a specific amount of water, at specific times, and is designed for different gardens. Each time someone uses one of them and doesn't take it with them, the hotel is forced to throw it out. Making your own travel toiletries is easier than you might think. Once you have all of your toiletries in place, don't rush out just yet to get a toiletries bag..
[url=]longchamp soldes[/url] Today's American society is more consumer-oriented now than ever before in history. Whether it's called, "keeping up with the Joneses" or "retail therapy," the things that used to be luxuries are starting to be perceived as necessities. Cable Highly Appreciated Mulberry Women's Standard Bayswater Printed Leather Shoulder Brown Bag, and all the Mulberry Bags for sale are affordable and stylish. TV used to be something wealthy people had just 20 years ago.
[url=]sac longchamp[/url] People who do not buy designer handbags very often (or at all),. people who can't tell the difference between this season's shoes and last seasons,. might like the "clue" that someone is wearing something designer so they can comment on it or keep it in mind. Born in Anderlecht in Belgium, Olivier trained as a haute cuisine chef Fabulous Mulberry Women's Standard Bayswater Leather Shoulder Black Bag online supply Save 50% and free shipping anywhere but had always been interested in design. He moved to London in 1997, and worked as a model and food stylist, whereby developing a sharp flair for style, detail and design, before setting up his own business. The Original Idea. With all of this said, I tend to make an online purchase for all of my personal purses, at the very least when I want to go inexpensive. You can find unreasonable deals upon eBay or Amazon but you can also find great will buy on websites which sale at wholesale prices. With wholesale buying, you've got to buy, sometimes, 3 or more..

Anonymous said...

I am sorry, I can help nothing, but it is assured, that to you necessarily will help. Do not despair.
I consider, what is it — a false way.
I am very grateful to you for the information.
It is remarkable, rather amusing opinion
I am sorry, that has interfered... I here recently. But this theme is very close to me. Write in PM.

[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]
[url=][b]michael kors outlet online[/b][/url]

Anonymous said...

[url=]lululemon factory outlet[/url] You are going to want to learn more about pursue the all the way path for more information regarding accomplish your career goals. If you are confident having to do with shaping a successful career as an IT own protection specialist,you can pertain to explore any of the following guidelines to explore suit your career aspirations.

[url=]jordan heels[/url] : People keep your computer all around the a multi functional fast paced environment where everything could possibly be the in this post and going to be the now They then you should not have some time to explore forget at least lose things and thus it's imperative they are able to understand more about draw attention away from all of them are concerning their an absolute must have belongings upon some form of place. iPhone 5 covers can conduit that void,so as to provide an all in one function storage accessory and for a good deal more than do nothing more than phones. These covers have specific storage space as well as a phone as in that case as compartments gorgeous honeymoons as well credit cards, change and a multi function place to learn more about store keys. But some of these covers are however compact and easily fit into a bag and jacket jacket pocket Perfect gorgeous honeymoons as well on-the-go!;

[url=]louis vuitton outlet online[/url] Inventory Application tends to be that to use to learn more about sustain and an all in one keep close track of to do with going to be the information regarding purchase, purchase and source can cost you of all are going to be the if you need supplied me with in your select Billing oftware, , Barcode Software, Barcode Printer, Bar Code Scanner, barcode reader, software as well as barcode, , barcode scanner.

[url=]louis vuitton outlet[/url] ' Attn: Ken shen ?Tel:? 0086 592 5284558

[url=]louis vuitton[/url] 4. Do not at all forget to make an all in one Google checkout account – Not apps can be released as at no charge click of a button applications. All Android apps that are submitted for more information regarding going to be the Google lay Store as paid at least freemium software he has to have Google checkout accounts. This is this to get to understand more about ensure an all in one monetizing strategy as well as the app that not only can they last longer Also,developers will want to be aware that that without having the presence having to do with this account,it is not possible to learn more about upgrade a multi functional free Android app for more information regarding an all in one paid app version.