Gas station without pumps

2019 March 17

Sabbaticals until retirement revisited

Filed under: Uncategorized — gasstationwithoutpumps @ 10:58
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In Sabbaticals until retirement, three years ago, I outlined a sabbatical plan for using up my sabbatical credits slowly:

year Fall Winter Spring credits left
2015–16 +1 +1 +1 20
2016–17 –6 +1 +1 16
2017–18 –6 +1 +1 12
2018–19 –6 +1 +1 8
2019–20 –6 +1 +1 4
2020–21 +1 –5 +1 1

I followed that plan through this year, but I won’t be able to continue with it, due to a misunderstanding on my part of the rules for sabbatical leave.  I can turn in n credits for n/9 salary, but only for n≥6, so the n=5 plan for 2020–21 cannot be made to work.  I found this out when I tried this year to modify the plan to

year Fall Winter Spring credits left
2019–20 –5 +1 +1 5
2020–21 –5 +1 +1 2

Because I can’t take 5/9 salary, I am going to switch to taking a leave without pay this fall, and then full-salary sabbatical in 2020:

year Fall Winter Spring credits left
2019–20 -0 +1 +1 10
2020–21 –9 +1 +1 3

I’ve decided that I need the break from grading more than I need the money—if I taught all three quarters next year with the number of hours per week I’ve been putting in this year, I’d burn out and retire a year earlier, which would cost me more.

The new plan will cost me about $5000 in extra insurance premiums (the University pays a share for medical, dental, and vision care insurance for sabbatical leave, but not leave without pay) in addition to losing a sabbatical-leave credit (worth about $5000 before taxes, or $3500 after taxes). Doing the leave without pay this fall allows me to take full salary for Fall 2020 sabbatical, using one more sabbatical-leave credit than if I took 8/9 pay this Fall.  If I had known about the 6/9 minimum earlier, I would have revised the plan for Fall 2018 to take 7/9 pay, rather than 6/9.

I can’t contribute to my HSA (Health Savings Account) while on leave without pay, so I need to change my contributions for the months that I will not be on leave.  The insurance premiums for the health care do count as allowable expenses for the HSA.

The Sabbaticals until retirement post also discussed the possibility of doing a “service buy-back” to buy service credit on my retirement for the foregone salary.  At the time it looked like a good investment, but the paperwork involved was daunting (I thought I had done it all and sent it in, but all that triggered was them sending me the paperwork to do all over again).  I’ll have to decide again on the service buyback this spring or early summer, since there is a 3-year limit on doing the buyback at a reasonable rate—after that they charge so much that it is clearly not a good investment.   The buyback I could do this year would get me 1/3 year extra service credit, which would increase my retirement salary by 0.83% of my HAPC (highest average plan compensation—essentially my annual salary at full time). I can use annuity calculators to figure out about how much that is worth and compare it to what the University would charge me.

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