Office of the Chancellor

V. Components of the Multi-Year Plan
     B. Expenditures
          (11) Restructuring $ 2.8M
                  (c) The Early Retirement Program

We have implemented a Retirement Incentive Program as a humane means of restructuring the University, with minimum resort to layoffs or other personnel reductions. The plan identified all individuals committed at a point in time to retire over the next three years, thereby allowing a strategic deployment of replacements. As part of restructuring, the plan determines that personnel will be replaced up to a maximum of half of the salary base of the retiring colleague. At present the Academic Affairs area has been authorized to replace up to the full 50% and the remainder of the institution is presently held to 35%. This containment is to allow a buffer until we determine more precisely where the savings through administrative redesign will be most likely realized. The additional 15% for Academic Affairs was released on condition that the positions are targeted towards staffing in the Library, and in diversifying the faculty. As the wave of retirements moves through our University, there is a unique opportunity to replace faculty in key strategic areas and to advance the goal of a diverse and multicultural faculty and staff. Since the financial horizons unfortunately do not allow for full replacement, we must be even more exacting in deploying each position in the most optimum way possible.

In total approximately 435 employees opted for the plan, with a total salary base of $11.2M on the general fund. The savings of $5.6M then become an important component of the overall $11M of this restructuring plan.

It should be noted that this Strategic Action plan is based on revenue projections and restructuring savings, but does not a priori precipitate additional staff reductions beyond what is currently committed through the retirement plan. If revenues turn out to be lower than projected in our financial models, we will be forced to revisit the model, either by reducing the proposed expenditures on initiatives, or through reductions or freezing of other positions in the future.

It should be noted finally that the implementation of the retirement plan will incur one-time costs totaling $9.6M, which are explicitly shown in Table II, line 12.

David K. Scott was Chancellor of the University of Massachusetts Amherst, 1993-2001. This is an archive of the Chancellor's Web site during his tenure.
V. Components of the Multi-Year Plan B. Expenditures (11) Restructuring $ 2.8M (c) The Early Retirement Program We have implemented a Retirement Incentive Program as a humane means of restructuring the University, with minimum resort to layoffs or other personnel reductions. The plan identified all individuals committed at a point in time to retire over the next three years, thereby allowing a strategic deployment of replacements. As part of restructuring, the plan determines that personnel will be replaced up to a maximum of half of the salary base of the retiring colleague. At present the Academic Affairs area has been authorized to replace up to the full 50% and the remainder of the institution is presently held to 35%. This containment is to allow a buffer until we determine more precisely where the savings through administrative redesign will be most likely realized. The additional 15% for Academic Affairs was released on condition that the positions are targeted towards staffing in the Library, and in diversifying the faculty. As the wave of retirements moves through our University, there is a unique opportunity to replace faculty in key strategic areas and to advance the goal of a diverse and multicultural faculty and staff. Since the financial horizons unfortunately do not allow for full replacement, we must be even more exacting in deploying each position in the most optimum way possible. In total approximately 435 employees opted for the plan, with a total salary base of $11.2M on the general fund. The savings of $5.6M then become an important component of the overall $11M of this restructuring plan. It should be noted that this Strategic Action plan is based on revenue projections and restructuring savings, but does not a priori precipitate additional staff reductions beyond what is currently committed through the retirement plan. If revenues turn out to be lower than projected in our financial models, we will be forced to revisit the model, either by reducing the proposed expenditures on initiatives, or through reductions or freezing of other positions in the future. It should be noted finally that the implementation of the retirement plan will incur one-time costs totaling $9.6M, which are explicitly shown in Table II, line 12. Table of Contents Next \| Joint Reporting