SIP for Staff and Non-Tenure Track Faculty Under Consideration
By Jody Record, Campus Journal Editor
May 19, 2010
A voluntary Separation Incentive Program (SIP) for staff and non-tenure track faculty is currently under consideration by the administration as a way to help reduce salary expenses.
Dick Cannon, vice president of finance and administration, has said the possibility would be one way to contain costs.
The last time a SIP was offered was in 2008.
The plan being considered is similar to the one offered then. It included a one-time payment of 2 percent of the employee’s annual salary times the number of years of service (not to exceed one year’s salary), continued medical coverage for up to 5 ½ years or to age 65, whichever comes first and if previously elected and eligible, participants will also receive the ARC payment. The annual salary figure does not include overtime, longevity, shift differential, etc.
Recent discussions have been held with the President’s Cabinet, Provost’s Council and staff councils. The eligibility requirements and plan design components are still under discussion and therefore subject to change. If approved, the SIP would be announced in early June with a separation date in early January 2011.
“As a university we face continuing challenges to our revenue streams: increased competition for students; the need to keep our cost of attendance increases very modest; and growing uncertainty about the level of state support that we can count on in the next biennium. Given these realties, I am very concerned about our ability to sustain the size of the workforce we have today,” says Dick Cannon, vice president of finance and administration.”A Separation Incentive Plan at this time could be an important opportunity for those approaching retirement to take advantage of an incentive payment while reducing UNH’s ongoing wage costs in FY 2012, 2013 and beyond.”
USNH began using separation incentive plans in the mid-1990s as a replacement for early retirement options. They have been offered to faculty and staff members in the past.