An incentive early retirement program is an arrangement between employer and employee that provides tangible inducement or reward for voluntary early retirement. It may be a formal program or an ad hoc agreement negotiated with the institution. The most common incentives include severance pay, liberalized actuarial reduction, annuity enhancements,…

The literature on incentive early retirement for faculty members is reviewed, including the findings of studies that have assessed the effectiveness of such programs. In addition to describing different types of programs and the incentives offered, attention is directed to legal issues, costs and benefits, assessing whether a program is feasible,…