for
the Amherst campus of the University of Massachusetts
January 11, 2002
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Early retirement, other steps may yield
some by Daniel J. Fitzgibbons, Chronicle staff  early 300 campus employees crowded into an early retirement session Monday morning to hear the details of a incentive package aimed at reducing the state payroll by 6,700 jobs.
The session kicked off a week-long effort by Human Resources staff to get the word out about the early retirement legislation signed into law late last month by Acting Gov. Jane Swift. Over the next 17 months, the program could save the state $158 million. Although many campus employees have expressed interest in the incentive package, administration officials say there is no way to gauge how many faculty and staff will actually apply for the program. According to the President's Office, as many as 1,000 employees across the five-campus system are eligible for the program. The application deadline is Feb. 15. There is some hope that early retirements and a series of cost-savings options offered to three campus unions, could mitigate the need for layoffs as the campus grapples with a $15 million financial shortfall. Last month, campus officials said 160 positions would be eliminated by June 30, the end of the fiscal year. About 100 of those jobs were expected to be lost through attrition with the remaining coming through layoffs. The early retirement bill provides an incentive by adding five years to an eligible employee's age or years of creditable service. Under the terms of the measure, employees must be at least 55 with 10 years of creditable service or any age with at least 20 years of creditable service, to be eligible to apply. The package does not apply to trust-funded employees, according to state Sen. Stan Rosenberg (D-Amherst), who attached an amendment to the Senate bill to cover those staff. But the House opposed including trust-funded employees and the provision was dropped in the final measure, he said. The State Board of Retirement will review all applications and rank allowable retirees by years of service until 6,700 applications have been accepted. If more than 6,700 state workers apply, those who are having either 5 percent or 7 percent retirement withheld will be automatically accepted into the incentive program. Employees who became members of the retirement system before Jan. 1, 1975 have 5 percent retirement withheld from their pay, while those hired between Jan. 1, 1975 and Jan. 1, 1984 have 7 percent withheld. The effective date for retirements is June 15. As a rough measure, campus officials say every 100 positions equal $5 million in salaries. By that estimate, the exit of 300 campus employees could save the campus $15 million. Seven years ago, the campus launched its own early retirement incentive program which led the departure of more than 400 employees over a three-year period. The Division of Human Resources is scheduling individual retirement counseling sessions where employees can obtain a projected retirement calculation. Call 5-6115 to schedule an appointment. |
