The University of Arkansas at Little Rock has resumed the early retirement benefits provision again. The University had discontinued it for tenured faculty members two years ago. The resumption of the benefits was done so that the programs can become more efficient and the university can save some money. University officials believe that the staffing changes due to this step would not impact students.
The Impact of Offering Early Retirement Benefits Again
The school’s director of budget and strategic initiatives, Sandra Robertson recently stated that the University officials were expecting that about 25 tenured and 5 non-tenured members would opt for early retirement and it would help the University to save $850,000. But only 11 have applied for early retirement so far.
The Cost Factor
The University officials admitted that they were hoping that this step would reduce the operating costs of the university and make the programs more efficient. The officials think that opening the option of early retirement is a better method than terminating employees to reduce operational costs.
The Real Savings
The fewer numbers of university members making use of the retirement benefits have reduced the savings amount predicted by the University. It now stands at $500,000. The University has not yet calculated the exact amount of savings generated from the 11 members who have opted for retirement. The savings figure depends on how many of the 11 agreements are approved and how many newly empty spots are filled, says Robertson.
The Numbers
The number of university members who have opted to enjoy their retirement benefits by applying for early retirement is far too low. It’s just 7 % of the 161 members eligible for the early retirement. The total number of the university staff is much higher and the 11 members are just 1% of it.
Retirement Benefits for Early-Retirees
Robertson has stated that the early retirees used to get an early-retirement incentive year-round. This benefit was equal to the nine-month salary withdrawn by a tenured faculty member. Now that the situation has changed, the university is just offering a one-semester benefit to the entire eligible tenured faculty opting for retirement. They would be eligible for the benefit only if they retire before the end of this summer.
Little Impact on Students
The university officials believe that the early retirement and retirement benefits changes of the faculty members would not have much impact on students. Some of the students may miss a favorite teacher but the changes in staffing would have the bare minimum impact on the number of sections and the progress to a degree.
