The University Record, November 23, 1998

Faculty Perspectives

 

Effects of Ending Mandatory Retirement

Report from the Budget Study Committee

As of 1990, state law stipulated that mandatory retirement at age 70 be discontinued. The Budget Study Committee decided to determine what impact the discontinuance of mandatory retirement would have on the total tenured faculty budget at the University of Michigan. The Budget Study committee work was confined to faculty on the Ann Arbor campus.

Age

Year

60

61

62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
Total

89-90

62
49
43
42
39
29
28
21
9
13
3
0
0
0
0
0
0
0
338

90-91

62

60

48

42

37

33

24

27

16

6

4

0

0

0

0

0

0

0

359

91-92

61

60

58

47

36

35

29

23

22

13

3

3

0

0

0

0

0

0

390

92-93

65

61

54

58

42

32

34

28

21

18

8

3

3

0

0

0

0

0

427

93-94

34

64

56

50

47

39

24

33

26

16

9

5

3

3

0

0

0

0

410

94-95

63

34

62

52

45

37

31

20

28

21

10

7

2

2

3

0

0

0

417

95-96

45

61

33

61

45

35

30

25

18

16

15

8

7

1

2

3

0

0

405

96-97

45

43

57

30

54

41

33

27

23

11

12

12

5

6

1

1

3

0

404

97-98

51

45

43

53

28

48

30

26

20

18

8

9

9

3

4

1

1

2

399

 

Table 1 shows the numbers of tenured faculty age 60 or older employed at the University from fiscal year 89-90 through fiscal year 97-98 as well as the specific age distribution of faculty between the ages of 60 to 77. The fraction of tenured faculty aged 60 or older who are also over 70 was then calculated (Figure 1) for each fiscal year since 89-90. Figure 2 shows the percent of total tenured faculty salaries being paid to persons over 70 during fiscal years 89-90 through 96-97.

It should be noted that the central University budget is not affected because salaries are determined at the department level. Table 1 shows that some faculty members are still working through age 77. However, as shown in Figure 1, the percentage of total tenured University faculty 60 or older still working beyond 70 years of age has reached a plateau at approximately 9 percent. If these figures are an indication of future trends, we can estimate that approximately 10 percent of the faculty 60 or older will be over 70 during any given fiscal year in the future. Figure 2 shows that as of fiscal year 96-97, the year for which the latest data are available, the combined salaries of those over 70 as a percentage of total University tenured faculty salaries has not reached a plateau. Therefore this figure may continue to rise for a few more years. At some time in the future, because the proportion of faculty expected to be working at advanced ages has stabilized, the percentage of total University tenured faculty salary being paid to those over 70 years of age should also stabilize. At present, there are not enough data to predict that percentage with confidence.

 

 


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