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As part of our continuing effort to reduce expenses to address the University's $125 million budget shortfall, a voluntary retirement incentive will be offered to identified salaried (monthly paid) staff members in October 2009.
Because every school and administrative division has different operating considerations, the incentive may not be offered through every school or department. Deans and vice presidents will determine eligible positions based on whether the position could be eliminated or restructured for significant cost savings if the retirement incentive is accepted. The incentive is expected to be offered to about 100 individuals.
Staff who work in those positions and meet the following criteria will have the opportunity to enroll for enhanced retirement benefits:
- Must be in a benefits-eligible position that has been identified by a school or department as one that could potentially be eliminated or restructured
- Must meet the Rule of 75 (Age + Years of Continuous Service = 75)by December 31, 2009
- Position must not be funded by more than 50 percent by grants or contracts
Eligible staff members who enroll for the Monthly Staff Retirement Incentive will receive a lump-sum payment of two weeks of pay for each full year of service with Duke (up to 52 weeks of pay). Staff would also receive payment for any accrued and unused vacation, up to a maximum of 40 days.
Eligible staff will receive a packet of information at their home address in early October. Special group meetings will be held in October to explain the details of the Monthly Staff Retirement Incentive and answer questions from eligible staff.
Questions & Answers
What is the Monthly Staff Retirement Incentive?
This voluntary program offers eligible Duke University monthly-paid staff members the opportunity to receive a lump-sum cash benefit upon termination if they retire by
December 31, 2009.
Why is the University offering the Monthly Staff Retirement Incentive?
This is the latest in a series of steps taken to help address the University's $125 million budgetary shortfall. This one-time incentive program will help reduce the number of overall positions at the University through voluntary retirements, reducing our overall compensation expenses and limiting the potential for involuntary layoffs later. The University has already announced a limited salary increase program and the Staff Retirement Incentive Plan this year, curtailed external hiring through a vacancy management initiative and introduced an administrative reform effort.
Who is eligible to enroll in the Monthly Staff Retirement Incentive?
Monthly paid staff members of Duke University who:
- Have met the "Rule of 75" or will meet this rule by December 31, 2009,
- Do not have more than 50% of their position funded from a grant or contract,
- Are employed in a benefits-eligible position that has been identified for potential elimination or restructuring by the dean or vice president of their department or organization if the individual accepted the incentive.
Faculty and Duke University Health System staff are not eligible for the Monthly Staff Retirement Incentive.
I meet the Rule of 75 eligibility criteria for the Monthly Staff Retirement Incentive, why was the incentive not offered to me?
The Monthly Staff Retirement Incentive is being offered to individuals who meet the eligibility criteria and whose positions have been identified for potential elimination or restructuring by the dean or vice president for the school or department if the retirement incentive is accepted.
Are staff working in Duke University Health System eligible?
This incentive does not apply to staff in Duke University Health System, which is employing other strategies to manage expenses and contain costs.
The University and Health System are closely aligned but are legally separate entities with different budgetary issues and income sources. While the
downturn in the economy has affected both organizations, the decline in the value of the University's endowment has had a greater impact on its annual
operating funds than that of Duke University Health System, which is supported primarily through income from providing patient care.
Will schools and departments rehire for any positions that become vacant after a staff member retires?
The University is seeking to reduce the overall number of positions through curtailed hiring and voluntary retirement to limit the potential for involuntary layoffs in the future. Rehiring for any vacant positions will be evaluated through the Vacancy Management process, which requires the approval of the Executive Vice President, Provost or their designee.
How do I know if I am eligible to enroll in the Monthly Staff Retirement Incentive?
Eligible employees will receive informational packages at their home address in
early October that will include general information about the retirement incentive.
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