Volume 25, No. 11	Editor: Bob Rupert	January, 1995.





			  Special Early Retirement?



				by Bob Rupert



The employer has announced a Special Early Retirement program for faculty

and professional librarians.



If you haven't received your brochure yet, you soon will.  We're not sure

it represents a real answer to the University's financial difficulties.



We're not sure why the employer is putting people under such time pressure

(about six weeks to make a career-ending and Irrevocable life decision).



We're not sure why the employer decided a few months ago to abandon an

ongoing consultation process with CUASA on early retirement and go ahead

on its own.



And we're not sure this scheme is really very special.



The financial incentive now offered seems to fall far short of the one

month per year of service that is common in both the private and public

sectors.  Under SER, a 56-year old faculty member or librarian with 30

years' service would get 18 months' salary.  With 20 years' service - more

likely for faculty of that age - it drops to 13 months.



But CUASA has long supported fair retirement arrangements for those who

want to leave early, and we will continue to do so.



The University's Special Early Retirement brochure is quite clear, and we

will not comment on the details here.



We do, however, recommend that you seek our advice after you have

determined exactly what SER (that's the employer's acronym) would mean for

you.  And keep in mind that there is already an early retirement

arrangement in place and it should not be ignored.



We recommend caution.  Retirement is usually permanent.2



At its Januay 13th meeting, Council passed the motion that:



		"CUASA receive the Carleton University Early Retirement

   		Window Program proposed by the University and encourage

      		  members to closely study the plan and seek independent 

					advice."

________________________________________________________________________________



And even if the above does not apply to you.



		"It's Time to Think About Your Retirement"



Depending on your age, retirement may be 10, 20 or even 30 years away. 

With daily concerns about living expenses and mortgage or car payments, it

is tempting to forget about the future for a while.  But, experts say you

should be planning for retirement today.  Why?  Check out these hard facts:



	* if you retire at age 60, you could have more than 1/3 of your 

	  lifetime still ahead of you

	* experts suggest you will need 65 to 75 per cent of your 

          pre-retirement income to maintain your lifestyle after you retire

	* at an inflation rate of four per cent, money today

          will be worth 1/2 as much in just 18 years

	* government benefits today provide just over $10,600 a year, 

          if you qualify for the maximum benefits



In 1960 a loaf of bread cost about 22 cents.  Today you pay about $1.39 -

that's an increase of 532 per cent in 30 years! In a time of steady

inflation, you need to start saving now to ensure financial security for

you and your family in the future.



A Registered Retirement Savings Plan (RRSP) is the most popular way of

putting money away for a brighter future.  This type of savings plan,

registered with Revenue Canada, offers two key benefits.



	* the best way to increase your retirement savings

          through long-term growth of your deposits and

	* tax savings for you today and in the future.





With the double threat of steady inflation and heavy taxation eating away

at your savings, it makes sense to put your money into a "protected" plan

like an RRSP.   No wonder that so many Canadians are finding they need to

belong to an RRSP.  You should check out these advantages:



	* your contributions are deductible for tax purposes

          (up to the limits imposed by (Revenue Canada)

	* interest is earned on the money in the plan tax-free, and 

          the earnings are re-invested in the plan for rapid savings growth

	* you only pay tax when you withdraw the money, at the time 

          when your taxable income will probably be lower than today."





Reprinted, with permission, from CAUT Bulletin Vol.42,No.1 - January 1995