5-19-09: Duke: Information sessions offer details on staff voluntary retirement incentive plan

Durham, NC -- Linda Rutt planned to retire in a few years to spend time with her grandchildren and expand a part-time venture selling cookware and kitchen accessories. But her dream is going to be a reality sooner than expected.

“I’m going to get to retire July 31, and I’m thrilled,” said Rutt, 62, a staff specialist who has worked 25 years at Duke’s Graduate School.

Rutt was among about 55 Duke employees who attended information sessions last week to learn more about a staff voluntary retirement incentive plan that offers an enhanced pension and earlier eligibility for retiree health insurance. The incentive is available to 825 university staff members who participate in the Employees Retirement Plan, a pension plan.

Kyle Cavanaugh, vice president for human resources, led the information session Rutt attended and said the voluntary incentive plan is the latest in a series of steps to help address the university's $125 million budget shortfall and limit the potential for involuntary layoffs in the future.

Offering incentives for retirement can help reduce the number of overall positions at the university and substantially lower compensation-related expenses, which account for about 60 percent of the university’s operating budget.

“The possibility of layoffs drops significantly based on the success of this program and how many people accept the voluntary retirement incentive,” Cavanaugh told the employees gathered for the session in Perkins Library’s Breedlove Conference Room. Cavanaugh and other Duke Benefits representatives explained the incentive and answered questions about retiree health insurance and other benefits.

The information sessions continue with two sessions Tuesday, (today); two sessions Wednesday, May 20, and one on Tuesday, May 26. Eligible employees may register by calling 660-0221 or visiting hr.duke.edu.

July 6 is the deadline to enroll in the retirement incentive plan, which is open to University staff members who are 50 or older this year and have completed 10 or more years of Credited Service in the Employee Retirement Plan, as of March 31, 2009.

In addition, eligible staff must currently work 20 hours or more per week and be in a position determined as eligible by the department. Health system employees are not eligible for the incentive.

In other efforts to address the $125 million shortfall, the university is not providing merit increases to university employees making more than $50,000 per year. The university also is curtailing external hiring and has introduced a comprehensive administrative reform effort.

“The staff retirement incentive plan is the next step in a comprehensive approach to addressing our budget challenges,” Cavanaugh said.

Rutt, the staff specialist from the Graduate School, found the information session helpful. “I’m looking forward to this new chapter in life,” she said.

http://www.dukenews.duke.edu/2009/05/incentiveplan.html