2008 Woodie Awards
New retirement program offered
60 faculty, staff qualify for new early retirement transition program
By: Jonathan Kleinow
Issue date: 3/30/06 Section: News
- Page 1 of 1
Webster University officials introduced a new early retirement policy for certain full-time faculty and staff members March 21. In e-mails to the campus listserv, Betsy Schmutz, director of Human Resources, outlined the programs that 60 faculty and staff qualify for. The programs are completely voluntary.
Jim Staley, associate vice president for Academic Affairs, said the retirement transition plans were introduced because faculty and staff expressed interest.
"We've had individuals who asked for some transition plans, and we've been having to respond on an individual basis," Staley said. "Because of the requests, we decided to try this."
At least 29 faculty members and 31 staff members qualify for the programs, Schmutz said in an interview. The faculty program offers two options. In the first option, faculty members would retire at the end of the 2007-2008 academic year and teach three courses, or half of a normal course load, in the 2006-2007 and 2007-2008 academic years. They would receive 70 percent of their salary in 2006-2007 and 60 percent in 2007-2008.
The second option is similar to the first, except faculty members would retire at the end of the 2008-2009 academic year. Interested faculty members must sign up for the first option by May 15 or the second option by Sept. 1.
For staff members, the program's first option would offer 10 percent of salary in 2006-2007 and 5 percent in 2007-2008, with full benefits in both years. They may also begin receiving money from Social Security and/or the university's retirement fund, if they have made contributions to the fund.
The second option for staff members would allow them to retire May 31 of this year and receive 25 percent of base compensation during the 2006-2007 fiscal year, plus various benefits.
Schmutz said the programs were developed jointly over the course of the last year with Human Resources and Academic Affairs.
"I think particularly with faculty, it's an excellent opportunity for us to retain some intellectual capacity here at the university, but at the same time help our faculty make this transition," Schmutz said.
Jim Brasfield, management professor and president of the Faculty Senate, said while he qualified for the program, he isn't interested in retiring. He said while institutions such as General Motors offer similar programs, they do so for very different reasons.
"There are some institutions that are in such a state of contraction, such as GM, that if they can get people to retire, they're not going to be replaced," Brasfield said. "Webster's not in a state of contraction like that."
However, Brasfield said the plans could save the university money.
"If you can get someone in a fairly senior position with a high salary and you can replace them with someone just out of grad school, you can save some money" to use for other purposes, such as hiring more faculty, Brasfield said.
Staley said if faculty members retired through the program, they would not automatically be replaced.
"It is the expectation that these faculty will be replaced and they will be replaced where there is the strongest need," Staley said.
He emphasized the programs were not introduced as budget reductions, but as voluntary programs given to faculty and staff nearing the end of their careers.
Nancy Higgins, chair of the Webster Staff Alliance board, said she didn't know how many staff members might be interested in participating. She said some staff members had expressed interest in such a plan.
"I think if it's helpful to a few people, it will be a good thing," Higgins said.
INFORMATIONAL MEETINGS
Two information sessions will be held for those interested in the programs. A presentation, "Your Options for Withdrawals from Your Retirement Plan," will be held April 6 in the University Center Sunnen Lounge. There will be a presentation discussing Social Security benefits April 11. Times and locations have not been finalized. For more information, contact Betsy Schmutz at ext. 6960 or schmutz@webster.edu.
Jim Staley, associate vice president for Academic Affairs, said the retirement transition plans were introduced because faculty and staff expressed interest.
"We've had individuals who asked for some transition plans, and we've been having to respond on an individual basis," Staley said. "Because of the requests, we decided to try this."
At least 29 faculty members and 31 staff members qualify for the programs, Schmutz said in an interview. The faculty program offers two options. In the first option, faculty members would retire at the end of the 2007-2008 academic year and teach three courses, or half of a normal course load, in the 2006-2007 and 2007-2008 academic years. They would receive 70 percent of their salary in 2006-2007 and 60 percent in 2007-2008.
The second option is similar to the first, except faculty members would retire at the end of the 2008-2009 academic year. Interested faculty members must sign up for the first option by May 15 or the second option by Sept. 1.
For staff members, the program's first option would offer 10 percent of salary in 2006-2007 and 5 percent in 2007-2008, with full benefits in both years. They may also begin receiving money from Social Security and/or the university's retirement fund, if they have made contributions to the fund.
The second option for staff members would allow them to retire May 31 of this year and receive 25 percent of base compensation during the 2006-2007 fiscal year, plus various benefits.
Schmutz said the programs were developed jointly over the course of the last year with Human Resources and Academic Affairs.
"I think particularly with faculty, it's an excellent opportunity for us to retain some intellectual capacity here at the university, but at the same time help our faculty make this transition," Schmutz said.
Jim Brasfield, management professor and president of the Faculty Senate, said while he qualified for the program, he isn't interested in retiring. He said while institutions such as General Motors offer similar programs, they do so for very different reasons.
"There are some institutions that are in such a state of contraction, such as GM, that if they can get people to retire, they're not going to be replaced," Brasfield said. "Webster's not in a state of contraction like that."
However, Brasfield said the plans could save the university money.
"If you can get someone in a fairly senior position with a high salary and you can replace them with someone just out of grad school, you can save some money" to use for other purposes, such as hiring more faculty, Brasfield said.
Staley said if faculty members retired through the program, they would not automatically be replaced.
"It is the expectation that these faculty will be replaced and they will be replaced where there is the strongest need," Staley said.
He emphasized the programs were not introduced as budget reductions, but as voluntary programs given to faculty and staff nearing the end of their careers.
Nancy Higgins, chair of the Webster Staff Alliance board, said she didn't know how many staff members might be interested in participating. She said some staff members had expressed interest in such a plan.
"I think if it's helpful to a few people, it will be a good thing," Higgins said.
INFORMATIONAL MEETINGS
Two information sessions will be held for those interested in the programs. A presentation, "Your Options for Withdrawals from Your Retirement Plan," will be held April 6 in the University Center Sunnen Lounge. There will be a presentation discussing Social Security benefits April 11. Times and locations have not been finalized. For more information, contact Betsy Schmutz at ext. 6960 or schmutz@webster.edu.