Trustees: University's Early Retirement a Success

UNIVERSITY'S EARLY RETIREMENT INCENTIVE A SUCCESS, TRUSTEES TOLD

     COLUMBUS -- The Ohio State University freed $25.2 million of 
annual salary by offering an early retirement incentive to 
faculty in 1995, Edward J. Ray, senior vice provost, told the 
university's Board of Trustees Friday (12/6).

     The salary savings from the faculty who retired became 
available for reinvestment into new academic areas, Ray said.

     Three hundred and eighteen faculty were among the 335 full-
time equivalent employees who took advantage of the incentive.

     After the university completes planned faculty hiring to 
meet university needs, it expects annual savings of $7.7 million 
in salaries and benefits and a one-time cash savings of $18 
million.

     The university instituted the retirement incentive to help 
colleges meet budget reduction mandates, afford colleges the 
opportunity to redirect resources into new academic areas and to 
match faculty staffing with student instructional demands.  Even 
after the university fills positions left vacant by retirements, 
there will be a 1.8 percent reduction in the number of faculty.

     Efforts to minimize the impact of the retirements on the 
quality of classroom instruction, including part-time employment 
of recent retirees, have been effective, Ray said.

     In particular, to maintain the quality and variety of course 
offerings, 113 of the 258 faculty who retired from the Columbus 
campus were rehired on a part-time basis to teach courses.  The 
rehired teachers have an average compensation rate of $5,400.  
Before their retirement, they would have received an average 
$14,300 per course.

     Restrictions on new hires and rehires were imposed with the 
understanding that the university's central administration would 
work closely with colleges to insure that instructional needs 
were met.

     Several other faculty who were rehired were principal 
investigators of sponsored research projects, who returned to 
continue their research.  In those cases, no university general 
funds are used for their salaries.

     "State law dictates a number of specific conditions for such 
a program and that some wonderful scholars took advantage of the 
program whom we regretted losing," Ray said.  "But the university 
made every effort to implement the program in a fiscally sound 
and principled way."

     According to state law, faculty who receive state pensions 
must be fully retired for two months.  For 16 months after that, 
they can work on a limited basis.  At the end of 18 months, there 
is no limit on the appointment.  Even so, the rehiring of 
retirees is diminishing as permanent hires occur, Ray said.

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Contact: Edward Ray, senior vice provost, 614-292-5881

Written by David Bhaerman, University Communications, 614-292-
8422


[Submitted by: Von Vargas  (vargas.12@osu.edu)
               
Fri, 6 Dec 1996 15:20:52 -0500 (EST)]
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