Last Update: March 19 @ 7:09 PM
education
Brown offers buyouts to cut jobs, budget
BROWN UNIVERSITY
BROWN IS OFFERING incentives to employees who opt to take early retirement as part of its effort to reduce its budget for 2010-11 by $30 million.


PROVIDENCE – Brown University is offering incentives, including a year’s pay and a $15,000 bonus, to some non-faculty employees if they choose to retire by June 30. The buyout offer is part of the school’s effort to eliminate a projected $30 million deficit in its 2010-11 budget.

Brown made the offer Wednesday to about 260 half-time and full-time employees who will be at least 60 years old by June; have worked for the school for at least 10 years; and either hold unionized positions or are ranked 13 or lower on Brown’s 15-level position evaluation scale.

The incentives are intended to lower personnel costs by shrinking the school’s payroll of about 3,000 non-faculty workers.

“Many Brown employees have asked whether the administration would include a program like this as part of the university’s effort to reduce expenses next year,” Elizabeth Huidekoper, Brown’s vice president for finance and administration, said in a statement. “We have developed this program to help interested employees make the transition to retirement and maintain health insurance until they qualify for Medicare coverage.”

Eligible employees have until Dec. 23 to accept the early-retirement package. Those who take it can choose to retire on either April 15 or June 30, the school said.

In addition to a year of salary paid in a lump sum and the $15,000 bonus “to support the transition to retirement,” Brown said retirees will be allowed to remain on the school’s health insurance plan until they turn 65, although they will have to pay nearly the full premium. The university said it would contribute $83 per month through its Pre-Medicare Subsidy program.

“The program honors the contributions of long-time Brown employees,” Huidekoper said. “Eligible employees will want to consult with their own advisors and with the university’s human resources office to determine whether the incentive is right for their circumstances. The decision is entirely in the hands of employees.”

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