Since April, a total of 78 administrators and classified employees have opted for the Early Retirement Incentive Plan, creating doubts about whether the university will reach its goal of 150 early retirees by next August.
About 300 employees are eligible for ERIP, said Greg Fialko, director of Benefits and Compensation.
We were hoping that 75 employees would retire by July of this year
and 72 did Fialko said. We are hoping a total of 150 people will retire by the ERIP deadline which is August 31
2007.
The plan, which has been offered since March 2006, allows employees to retire earlier than state requirements mandate and receive greater retirement benefits in exchange, Fialko said. It was created in response to OU's budget realignment, which cut $14.4 million from the yearly budget.
The reason for ERIP was to offer an incentive for people to retire
and therefore cut costs for the university
Fialko said. Otherwise
we would have to lay off employees or raise tuition.
Reducing the need for layoffs has been the major goal of ERIP since it was first offered, OU Provost Kathy Krendl said. However, she denied that retirements would have a noticeable effect on tuition.
There isn't a simple direct relationship between ERIP and tuition increases
Krendl said. University costs as a whole affect tuition
and retirements are a small part of that budget.
However, the budget realignment did lead to the elimination of some administrative positions, Krendl said.
We did target some positions to fit into the realignment
but that was more in the interest of academic priorities than simple costs
she said.
A $10,000 bonus was offered to employees who retired by July 1, according to an April 26 Post article. However, the university still is encouraging eligible employees to retire before the deadline next August.
ERIP helps OU cut costs while allowing employees to enjoy greater retirement benefits
