SectionsBOG meeting discussed incentivized retirement
Laura Dimmit
Issue date: 11/10/09 Section: News
An incentivized retirement plan designed to save the university money was up for discussion again, this time at the Board of Governors' meeting on Oct. 29.
President Michael Nietzel introduced the proposed program to the governors and will ask them to endorse it at their next meeting on Dec. 18.
"We want faculty to have the maximum opportunity to think about this so that people can make a good decision," he said.
Nietzel said 198 full-time faculty would be eligible for the incentivized retirement, which is approximately one-fourth of the university's full-time faculty.
That group earns approximately $14.3 million in salary every year. Nietzel said overall personnel costs make up about two-thirds of the university's budget.
The retirement incentive, which would be available for 60 days starting Jan. 1, 2010, would come in the form of one of two options.
Retirees could receive a one-time payment of 25 percent of their yearly salary or choose to have their health benefits paid for by the university until age 65.
To make the program cost-effective, replacements for retired professors would need to be hired for about half of the retiree's salary.
"As hard as it is for a university to talk about saving money, we've got to save some money," Nietzel said. "If we don't get that 10 million dollars from state appropriations, it will be like a family losing part of their paycheck."
Retirees would be able to negotiate a deal with the dean of their specific college and come back to teach up to 12 credit hours a year.
Governor Gordon Elliott said, "In terms of savings, a lot of it has got to come from personnel. I'm happy with the plan and happy to be able to go back in and fill positions and find out what we really need. Research may not be as high in this time period, but we have got to teach students."
Board President Brian Hammons said when considering the program, "We have to keep academic quality in mind. The people's careers who will be affected are the students."
President Michael Nietzel introduced the proposed program to the governors and will ask them to endorse it at their next meeting on Dec. 18.
"We want faculty to have the maximum opportunity to think about this so that people can make a good decision," he said.
Nietzel said 198 full-time faculty would be eligible for the incentivized retirement, which is approximately one-fourth of the university's full-time faculty.
That group earns approximately $14.3 million in salary every year. Nietzel said overall personnel costs make up about two-thirds of the university's budget.
The retirement incentive, which would be available for 60 days starting Jan. 1, 2010, would come in the form of one of two options.
Retirees could receive a one-time payment of 25 percent of their yearly salary or choose to have their health benefits paid for by the university until age 65.
To make the program cost-effective, replacements for retired professors would need to be hired for about half of the retiree's salary.
"As hard as it is for a university to talk about saving money, we've got to save some money," Nietzel said. "If we don't get that 10 million dollars from state appropriations, it will be like a family losing part of their paycheck."
Retirees would be able to negotiate a deal with the dean of their specific college and come back to teach up to 12 credit hours a year.
Governor Gordon Elliott said, "In terms of savings, a lot of it has got to come from personnel. I'm happy with the plan and happy to be able to go back in and fill positions and find out what we really need. Research may not be as high in this time period, but we have got to teach students."
Board President Brian Hammons said when considering the program, "We have to keep academic quality in mind. The people's careers who will be affected are the students."
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Food for thought
posted 11/12/09 @ 8:22 PM CST
I like that they got rid of the three-credit GEP class a couple years ago, and now they're essentially adding a credit to the University Life course to add in public affairs. (Continued…)
Free essays blog
posted 12/30/09 @ 8:34 AM CST
To make the program cost-effective, replacements for retired professors would need to be hired for about half of the retiree's salary.
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