More than 150 employees take early retirement
Plan helps university deal with budget cuts
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Tuesday was the last day for ISU employees to file for the early retirement incentive plan. As of Wednesday, 172 applications had been approved, said Brenda Behling, assistant to the executive vice president and provost.
Behling said applications were still in to her office Wednesday and that she could receive more Thursday.
Of the 172 that have been approved, 11 were faculty, nine were tenured faculty, 71 were merit employees and 90 were professional and scientific council employees.
The retirement incentive plan was approved at March’s Board of Regents meeting as a way to cope with the university’s current budget cuts and to avoid layoffs.
“The university encouraged departments to make every attempt to approve those person[s] who would ultimately be given a layoff notice,” Behling said. In order to have been eligible for the early retirement incentive plan, university employees had to be at least 60 years old and employed at Iowa State for at least 10 years. If employees qualify for Medicare while on the retirement plan, Medicare will become the first payer, and the university will cover any remaining costs after it. Employees who do not yet qualify for the Medicare program will receive full health benefits until they are 65.Mike Otis, associate director of human resource services, said about 850 employees were identified as eligible to take the plan when officials originally drew it up.
Behling said employees had to be approved by their individual departments in order to take the plan. As of Wednesday, only nine employees had been denied to take the plan. Of those, two were faculty, five were merit staff and two were professional and scientific staff, she said.
Behling said she didn’t know the specific reasons these nine employees were not allowed to take the incentive plan. However, she did say departments were told to deny the application if letting an employee take the early retirement did not save money. “The discretion to approve or decline the request rested with the home department and college and vice presidential area,” Behling said.The employees who have taken this plan come from all over the university, Behling said.
“It’s safe to say that nearly every college and vice presidential unit has approved a retirement incentive,” she said.
Behling added that many employees in University Extension who were impacted by the restructure took the incentive package.
The university has not calculated how much money the university will save yet, Behling said. The individual departments will need to decide if and how they will fill positions left vacant by the departures of these employees.
Numbers as of Wednesday
172 applications approved
11 faculty members
71 merit staff
90 professional and scientific staff
Retirement plan eligibility
Must be at least 60 years old
Must have worked for the university for at least 10 consecutive years
Behling said applications were still in to her office Wednesday and that she could receive more Thursday.
Of the 172 that have been approved, 11 were faculty, nine were tenured faculty, 71 were merit employees and 90 were professional and scientific council employees.
The retirement incentive plan was approved at March’s Board of Regents meeting as a way to cope with the university’s current budget cuts and to avoid layoffs.
“The university encouraged departments to make every attempt to approve those person[s] who would ultimately be given a layoff notice,” Behling said. In order to have been eligible for the early retirement incentive plan, university employees had to be at least 60 years old and employed at Iowa State for at least 10 years. If employees qualify for Medicare while on the retirement plan, Medicare will become the first payer, and the university will cover any remaining costs after it. Employees who do not yet qualify for the Medicare program will receive full health benefits until they are 65.Mike Otis, associate director of human resource services, said about 850 employees were identified as eligible to take the plan when officials originally drew it up.
Behling said employees had to be approved by their individual departments in order to take the plan. As of Wednesday, only nine employees had been denied to take the plan. Of those, two were faculty, five were merit staff and two were professional and scientific staff, she said.
Behling said she didn’t know the specific reasons these nine employees were not allowed to take the incentive plan. However, she did say departments were told to deny the application if letting an employee take the early retirement did not save money. “The discretion to approve or decline the request rested with the home department and college and vice presidential area,” Behling said.The employees who have taken this plan come from all over the university, Behling said.
“It’s safe to say that nearly every college and vice presidential unit has approved a retirement incentive,” she said.
Behling added that many employees in University Extension who were impacted by the restructure took the incentive package.
The university has not calculated how much money the university will save yet, Behling said. The individual departments will need to decide if and how they will fill positions left vacant by the departures of these employees.
Numbers as of Wednesday
172 applications approved
11 faculty members
71 merit staff
90 professional and scientific staff
Retirement plan eligibility
Must be at least 60 years old
Must have worked for the university for at least 10 consecutive years
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