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Voluntary Retirement Incentive Program Proposal

 

DATE:           March 21, 2018

TO:                 William Foulkes, Chair, Council on Postsecondary Education

CC:                 Brenda Dann-Messier, PhD., Commissioner for Postsecondary Education

FROM:          Meghan Hughes, President

RE:                 CCRI FY 19 Voluntary Retirement Incentive Program

The Community College of Rhode Island seeks to offer a voluntary retirement incentive to faculty and non-classified staff participating in the 403(b) retirement and ERSRI system. The CCRI Voluntary Retirement Incentive Program is intended to allow the college to recognize the long-term service of our employees and provide them the financial flexibility to retire. The program is not intended to create a net reduction in faculty and non-classified staff positions, but rather to provide the college the flexibility to rehire at competitive salaries and in a manner that effectively supports our college’s strategic initiatives.  Our analysis indicates that this program, fueled by a thoughtful rehiring implementation plan, will create budget savings beginning in FY 20.

 

Tentative Timeline 

  • March 21, 2018 -- Review and Anticipated Approval by Council
  • March 22, 2018 – Eligible Employee Q&A
  • March 26 – May 7, 2018 – Enrollment period
  • May 14, 2018 – Confirm program participants
  • Option A: June 23, 2018: Eligible and agreed upon participants retire
  • Option B: December 22, 2018 - Eligible and agreed upon participants retire

 

Program Elements

 

Participation: Participation in this program is voluntary and irrevocable.

Eligibility:

The voluntary retirement incentive program is available to faculty and non-classified staff employed in good standing at CCRI that meet the following criteria:

Option A:

  • Employed for a minimum of 20 hours per week.
  • Aged 62 or older by June 23, 2018.
  • Served 20 years at CCRI by June 23, 2018.
  • Position held is not funded by grant or auxiliary funds.
  • Active participant in the Council on Postsecondary Education’s Defined Contribution Plan (the 403b Plan, i.e. TIAA, VALIC or Met Life) or ERSRI.

 

Option B:

  • Employed for a minimum of 20 hours per week.
  • Aged 62 or older by December 22, 2018.
  • Served 20 years at CCRI by December 22, 2018.
  • Position held is not funded by grant or auxiliary funds.
  • Active participant in the Council on Postsecondary Education’s Defined Contribution Plan (the 403b Plan, i.e. TIAA, VALIC or Met Life) or ERSRI.

 

The college reserves the right to limit participation by department in order to ensure that the department will remain able to fulfill its mission to teach our students.

Program Benefits:

Option A:

  • Provide eligible employees who have applied for retirement during the enrollment period with a one-time only payment of 50% of current salary as of date of retirement on June 23, 2018, with a minimum payout of $20,000.
  • Eligible employees will also receive post-retirement health insurance benefits in addition to Social Security.
  • The one-time only incentive payment will be paid in July 2018 unless the retirement is deferred. If deferred, the employee would retire on June 23, 2019 and would receive the incentive payment in July 2020.

 

Option B:

  • Provide eligible employees who have applied for retirement during the enrollment period with a one-time only payment of 50% of current salary as of date of retirement on December 22, 2018, with a minimum payout of $20,000.
  • Eligible employees will also receive post-retirement health insurance benefits in addition to Social Security.
  • The one-time only incentive payment will be paid in January 2019 unless the retirement is deferred. If deferred, the employee would retire on December 21, 2019 and would receive the incentive payment in January 2020.

 

Other Conditions:

  • Faculty and non-classified staff who elect to retire under this plan will not be eligible for full-time reemployment at URI, RIC, CCRI or OPC.
  • Faculty retirees may have the opportunity for post-retirement employment on a part-time basis to teach up to a maximum of two courses per semester subject to the needs of the college and all applicable laws and regulations of the Council on Postsecondary Education, the State of Rhode Island, and collective bargaining contracts.
  • Non-classified staff retirees may be permitted to return to part-time employment on the college’s internal payroll, subject to the needs of the college and all applicable laws and regulations of the Council on Postsecondary Education, the State of Rhode Island, and collective bargaining contracts.
  • Non-classified employees who are members of ERSRI are not eligible for post-retirement employment at a state-funded college or university unless you fall within the teaching or advising exceptions. There is also a maximum statutory annual salary cap of $18,000.
  • Depending on the number of employees who enroll, it may be desirable and/or necessary to phase the eligible retirements over a two-year period to ensure strong delivery of college instructional and support services. If the program is implemented over a two-year period, employees will be asked for their timing preference and the college will make its best efforts to accommodate those preferences; provided, however, that in any event the benefits under this Program will be paid no later than 2.5 months after the end of the later of the eligible employee’s tax year in which the right to the payment is no longer subject to a substantial risk of forfeiture or CCRI’s tax year in which the right to the payment is no longer subject to a substantial risk of forfeiture.