New federal tax law requiring employees to pay taxes on a large sum of money at one time rather than over the course of retirement makes college retirement "buyout plans" no longer feasible and hampers colleges' efforts to thin faculty ranks after the uncapping of the mandatory retirement age. (MSE)

Colleges are both concerned about the effects of lifting the mandatory faculty retirement lid and interested in retaining the services of valued faculty. As a result, many are offering retiring teachers perquisites such as office and laboratory space, secretarial services, and opportunities to teach and advise part-time. (MSE)

Harvard University has found that insuring its retiring faculty for long-term health care was too expensive, blocking implementation of its planned benefits program and potentially affecting the planning of many colleges. (MSE)

The American Association of University Professors has recommended that administrators not tamper with the tenure system in an effort to keep people from working indefinitely after the mandatory retirement age is removed in 1994. (MLW)

A growing number of colleges are financing development of housing communities for their alumni. Benefits accrue to the institution, the academic community, and the retirees, who are often encouraged to participate in campus life. However, college involvement in financing and promoting retirement communities is controversial. (MSE)

Many college administrators feel that they need to start planning for the possibility that some faculty members may decide to work longer when the retirement age is lifted. They are concerned that a study by the National Academy of Sciences has stalled. (MLW)