Purdue retirement incentives to trim budgets, allow strategic realignment
INDIANAPOLIS – The Purdue University Board of Trustees on Monday (Aug. 30) approved a one-time retirement incentive plan for which an estimated 1,644 employees system-wide are eligible.
"The objective is to reduce salary and benefits in anticipation of flat state funding, enable departments to realign resources to meet changing needs or strategic objectives, and reduce the need for involuntary layoffs by allowing faculty and staff approaching retirement age to voluntarily retire earlier than they might have otherwise," said Al Diaz, executive vice president for business and finance, treasurer. "We estimate this program will create a net savings of $6.6 million by July 2013."
All tenured faculty who will be 60 on or before June 30 and all other faculty and staff who will be 60 on or before Jan. 31 are eligible if they have been employed in a benefits-eligible position for at least 10 years. All applications are subject to university approval. Those thought to be eligible include 621 faculty; 596 clerical, service or operations/technical assistants staff; and 427 administrative/professional staff.
Those whose retirements are accepted will receive $7,000 a year up to a total of $35,000 over five years that can be used to pay health premiums or other allowable medical expenses. Tenured faculty also will receive a one-time separation pay equal to one-half their final year's base salary. Others will receive a quarter of their final year's base salary.
Unless extended, staff and non-tenured faculty retirements will be effective no later than Jan. 31, while tenured faculty retirements will be effective no later than the end of the spring semester for those on an academic-year appointment or June 30 for those on a fiscal year appointment. The university may extend the date of retirement for up to one year if the employee's contribution is critical to the university.
The application window is Sept. 1 to Oct. 29. Those who meet the qualification thresholds will receive direct communication from the university.
The trustees met on the campus of Indiana University-Purdue University Indianapolis.
Writer: Jeanne V. Norberg, 765-494-2084, email@example.com
Source: Al Diaz, 765-494-9705, firstname.lastname@example.org