Board of Trustees Administrative Board Approves 1 Percent Reduction in Retirement
By Jody Record, Campus Journal Editor
March 30, 2011
The USNH board of trustees’ administrative board has agreed to reduce retirement contributions by 1 percent as of July 1, 2011 as part of a plan to cut benefits for nonunion employees systemwide by more than $8 million annually. Cutting the retirement match by 1 percent will save approximately $1.8 million per year.
During a meeting on March 24, the administrative board acted on a recommendation from the System Personnel Policy Committee (SPPC), which settled on the 1 percent reduction in USNH retirement contributions. The SPPC reached its decision after receiving feedback from employees.
The USNH board of trustees voted in February to trim benefits for all nonunion employees to save between $8 million and $9 million annually. Approved changes include:
- USNH self-funding its medical and prescription drug programs. Annual projected savings: $3.3 million.
- Redesigning the employees’ medical plan (co-pays, deductibles, i.e.). Annual projected savings: $2 million.
- Eliminating the $500 HRA benefit. Annual projected savings: $1.5 million.
- Reducing USNH’s retirement contributions. Annual projected savings: $1.8 million.
An open forum on how to reduce $2 million from health care benefits will take place April 13 from 10:30 a.m. to 12:30 p.m. in the MUB Strafford Room. The SPPC will then make a recommendation to the administrative board on May 19 and that board will vote May 26 on how to restructure the plan.
The changes in retirement benefits go into effect July 1 while the newly designed medical plan will begin Jan. 1, 2012.
UNH’s SPPC representatives have asked Healthy UNH to provide guidance on how to make changes that will have the least impact on employees while getting the best value for the money.
Suggestions and questions can be sent to SPPC representatives at firstname.lastname@example.org. Updates and reference material can be found at http://www.unh.edu/hr/total-rewards-information.htm.