To amend the Age Discrimination in Employment Act of 1967 to allow institutions of higher education to offer faculty members who are serving under a contract or arrangement providing for unlimited tenure, benefits on voluntary retirement that are reduced or eliminated on the basis of age, and for other purposes.

Amends the Age Discrimination in Employment Act of 1967 to declare that the retirement plan of an institution of higher education shall not violate certain age discrimination prohibitions solely because it offers employees with unlimited tenure additional benefits upon voluntary retirement that are reduced or eliminated on the basis of age, if specified conditions are met.