Special Incentive Plan Victoria Mulhern Executive Director Faculty

Special Incentive Plan Victoria Mulhern Executive Director, Faculty Affairs and Professional Development Perelman School of Medicine July 17, 2020 0

Special Incentive Plan • Effective August 1, 2020 – retroactive to eligible faculty who retired March 1, 2020 and after • Paid out of University EB pool • Eligibility • • Senior members of the Standing Faculty and Standing Faculty—CE • A senior faculty member who retired or has elected to retire under FIAP as of March 1, 2020 or some later date • A senior faculty who is 70 or older and who retired or has elected to retire as of March 1, 2020 or some later date and who was not eligible for FIAP Eligibility requirements • Senior faculty members who, as of June 30, 2021, satisfy the following requirements: • The faculty member is age 60 or older • The faculty member has completed 10 or more years of full-time continuous service; and • The faculty member satisfies the “Rule of 75” (the sum of the faculty member’s age and full-time continuous service equals or exceeds 75) 1

Special Incentive Plan Cash benefits • Equal to the greater of • 200% of the faculty member’s academic base salary OR • 200% of the average academic base salary for professors in PSOM (currently $193, 241) • not exceeding 200% of the faculty member’s total salary • Academic base does not include: • Salary earned through CPUP/CHOPPA • Salary earned as an administrative stipend • Paid in 24 equal installments • Subject to federal, state, local, social security, Medicare taxes • If faculty member dies, remaining cash benefits paid in lump sum to surviving spouse or estate 2

Special Incentive Plan Non-cash benefits • • • Medical Benefits Dental Benefits Vision Benefits Group Life Insurance Tuition Benefits Long-Term Care—may continue on a direct bill basis • No contributions to basic or supplemental retirement plans 3

Medical Benefits Examples • Option to defer coverage—one time! • Retiree under 65, spouse over 65 • Retiree chooses from the under 65 medical plan option (may continue on current Penn medical plan) • Calendar year 2020 rate per month -- $255 for Penn. Care/Personal Choice • Spouse must apply for Medicare Part B and chooses from the Medigap Security 65 Premium Plan • Calendar year 2020 rate per month -- $172 4

Special Incentive Plan Applying for Medicare 1 -800 -772 -1213 • Contact 3 months in advance • For yourself and spouse, if applicable • Medicare will send application to your home address • Request for employment information must be completed by Penn HR • No penalties for applying for Medicare Part B after 65 • Premiums for Medicare Part B are based on income 5

Special Incentive Plan Issues to consider: • Employment beyond retirement during the 2 -year period will be no more than 20% of the level of services performed before retirement • PSOM could decide not to accept a faculty member’s election to participate in the plan because the faculty member’s termination would be detrimental to the School • A faculty member must sign a release which includes among other provisions an agreement not to compete with the University or its affiliates • Within 25 miles of any of the hospitals in the UPHS system for one year from separation of service 6

Special Incentive Plan Process: • Announcement from the Provost to eligible faculty about the plan • List of eligible faculty will be given to department chairs • Announcement from the Dean to eligible faculty referencing the Provost’s message and giving them information on signing up for online information session • Eligible faculty will receive a hard copy letter at their home address describing the plan and providing the estimated amount they would receive if they elect the plan • Faculty will discuss options with Chief/Chair, including any employment beyond retirement 7

Special Incentive Plan Process (cont’d): • Faculty who elect the plan will make their benefit elections and sign an irrevocable agreement. • Faculty member must apply during the election window that opens on August 1, 2020 and closes on October 30, 2020 • Date of retirement must be on or before June 30, 2021 • At retirement, faculty appointment is converted to emeritus • Faculty who elect not to participate will sign a statement declining participation. 8

Your To-Do List • Access and review your Penn records on Workday@Penn. • Home address, email, phone number, beneficiary designations, dependent information • Access and review your Penn retirement plans online and meet with retirement plan representative: TIAA/CREF: www. tiaa-cref. org Vanguard: www. vanguard. com 9

Special Incentive Plan Questions? 10

Contact Information Hilary Lopez, Senior Benefits Specialist hlopez@upenn. edu Victoria Mulhern, Executive Director, FAPD vmulhern@upenn. edu 11