4-23-09: Duke: University Announces Retirement Incentive for Staff

Durham, NC -- Duke University has announced a special retirement incentive plan for about 600-700 staff to help reduce the size of the workforce as part of continuing efforts to address its $125 million budgetary shortfall.

The plan is the latest in a series of steps taken to help reduce compensation-related expenses, which account for about 60 percent of the University’s operating budget. The University has already announced a limited salary increase program this year, curtailed external hiring and introduced an administrative reform effort.

The Staff Retirement Incentive Plan is designed for University staff members participating in the Employees’ Retirement Plan (ERP), a traditional pension plan primarily for biweekly-paid (hourly) staff. A separate plan is being considered for monthly-paid (salaried) staff who participate in the Faculty and Staff Retirement Plan, a 403(b) plan.

The retirement incentive plan will offer an enhanced pension benefit and earlier access to retiree medical and other benefits for those who choose to take it. Those approved for the plan must retire by August 31, 2009, or by the end of the month of their 50th birthday if it is after that date.

“This one-time incentive program will help reduce the number of overall positions at the University through voluntary retirements, reducing overall compensation expenses and limiting the potential for involuntary layoffs later,” said Kyle Cavanaugh, vice president for Human Resources.
Have Questions about the Retirement Incentive?

Learn more about the Staff Retirement Incentive Plan by reviewing a questions-and-answers document that covers details about eligibility, the incentive and more.

Each of the University’s schools and departments were asked to identify positions that would be eligible for the Staff Retirement Incentive Plan. Staff who work in those positions and meet the following criteria will have the opportunity to apply for enhanced retirement benefits:

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Are active participants in the Employees’ Retirement Plan (ERP),
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Will be age 50 or older during the 2009 calendar year,
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Have completed 10 or more years of Credited Service in the ERP as of March 31, 2009, and
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Are currently scheduled to work 20 or more hours per week.

Staff members who are approved for the Retirement Incentive Program will receive credit for an additional 5 years of age and 5 years of credited service for the purpose of calculating monthly pension payments and determining eligibility for retiree medical, dental and Children’s Tuition Grant benefits.

Eligible staff will receive a packet of information at their home address in early May. Special group meetings will be held in May to explain the details of the Staff Retirement Incentive Plan and answer questions staff may have. Eligible staff can also schedule individual appointments with Benefits representatives to review their specific circumstances in greater detail.

The plan is voluntary, and staff must return their enrollment form by July 6, 2009, in order to take advantage of the Staff Retirement Incentive Plan.

http://news.duke.edu/2009/04/retirement_incentive.html