Being a tenured university professor is generally a well-paid job, even in Canada. But thanks to an unintended interaction between pension legislation and retirement policies, older tenured professors are required to draw their pensions (which are pretty damned good by themselves) and their salaries from the university, which boosts many of them well into the quarter-million a year range:
University College, University of Toronto, 31 July, 2008.
Photo by “SurlyDuff” via Wikimedia Commons.
Ontario is a weird place sometimes. One month ago, the government announced that it was implementing a performance-based funding plan which – if you took the government’s half-thought-out comments seriously – raised the possibility that hundreds of millions or perhaps even billions of dollars currently projected to be spent on institutions might be snatched away if institutions failed to hit some ill-defined targets in a type of contract-based funding system. You’d think this would be a big deal, something people would want to talk about and discuss.
But no. Somehow, this is not what is currently obsessing the Ontario university sector. Instead, apparently, we need to talk about how it’s a human rights violation for professors to be asked to enjoy their retirement on a six-figure annual pension.
Crazy? Well, yes. Here’s the deal. Time used to be that universities could tell professors to retire at age 65 or 67 or whenever. Over the course of the 2000s, provinces gradually got rid of mandatory retirement; in Ontario this occurred in 2006, when the provincial government amended the Human Rights Code to that effect. It should have surprised absolutely no one that more and more full professors, who towards the end of their career routinely make over $180,000 per year, decided to delay retirement not just past 65 but pretty much forever. In 2011, only 6.7% of professors were over 65 and 0.9% 70 or over. Just five years later in 2016, that was up to 10.2% and 3.3% respectively. At the time, I estimated that the compensation costs for the over-65s amounted to $1.3 billion, or enough to hire about 10,000 new junior faculty. The share of that going to the 70-pluses would amount to a little north of $400 million.
But here’s the thing: federal pension legislation requires individuals to start drawing down their pensions at age 71. You can’t opt-out. And so as a result you get individuals who are in what Carleton University economist Frances Woolley recently called the “quarter-million dollar club” (do read Frances’ piece – everything she does on higher education is excellent, but she is extra-excellent on this one). Even if you understand the legislative path that led us here, you probably – rightly – think this is an outrageous sum, particularly in light of the fact that research productivity tends to decline over time and teaching loads among full professors are not all that onerous.
On the other side of the pond, a recent tribunal ruling at Oxford’s St. John’s College points in a very different direction:
Oxford and Cambridge universities can force old professors to retire in order to boost diversity, a tribunal ruling suggests.
Prof John Pitcher, a leading Shakespeare scholar and fellow at St John’s College at Oxford, claimed that he had been unfairly pushed out at age 67 to make way for younger and more ethnically diverse academics.
He sued the College and university for age discrimination and unfair dismissal, claiming loss of earnings of £100,000 – but Judge Bedeau dismissed both claims.
