Retirement/Resignation Incentive Plan

Spring 2023

 

Background and Purpose

The cost of providing instruction, as represented by the salaries and benefits of faculty members, comprises one of the most significant components of the university’s operating budget. In order to help achieve an overall reduction in the cost of instruction, Southeastern will implement a one-time incentive plan for voluntary retirement/resignation of more highly compensated tenured faculty.

 

Retirement/Resignation Incentive Plan

This plan is offered pursuant to University of Louisiana System Policy Number FS-III.II.G-1a, Incentivized Retirement of Tenured Faculty.

For purposes of implementing the plan, comparable average salary rates will be based on the median salaries of new assistant professors in the degree awarding discipline as reported in the most recent CUPA salary survey, which reflects actual faculty salaries, exclusive of supplemental pay, at Southeastern’s SREB Four-Year 3, peer institutions.¹

This cost reduction initiative applies only to tenured faculty. As provided under current University of Louisiana System policy, tenured faculty who qualify, apply and are selected for this initiative will be provided a monetary incentive to voluntarily retire/resign from the university. The one-time incentive compensation payment shall be 50% of the employee’s nine-month salary for the current academic year (twelve-month salary for tenured library faculty), and no payment shall exceed $50,000. The required retirement/resignation date is no later than June 30, 2023. Individual faculty participating in this initiative are solely responsible for any and all related taxes that result from incentive compensation payments.

Current Southeastern faculty members who are tenured and whose nine-month salaries exceed the CUPA median salaries for new assistant professors at peer institutions in their respective degree-awarding disciplines will be eligible to apply for this incentive.

Positions vacated by faculty who retire/resign under this plan will be eliminated; however, based on particular circumstances, i.e., compliance with accreditation standards, current and projected enrollment, etc., departments may request a new instructor or assistant professor position.

Incentives may not be awarded in every department, and all awards will be based on achieving the greatest cost savings to the university overall. As required by University of Louisiana System policy, in the case of each participating employee/position, the University will document that a three-year cost savings is realized.

 

Selection Process and Methodology

As university funds for this initiative are limited, and in an effort to ensure the preservation of a core of experienced and talented tenured faculty, incentive compensation for retirement/resignation will be made available and awarded to a limited number of faculty as determined through the following methodology.

All tenured faculty will be notified of their eligibility. Members of the administrative staff on twelve-month appointment who hold faculty rank and tenure are not eligible. The date of this communication will be considered the official Plan Initiation Date. Tenured faculty members whose current nine-month salary (twelve-month salary for tenured library faculty) exceeds the CUPA median salary for new assistant professors at peer institutions are eligible to apply for the retirement/resignation incentive. Supplemental pay is not included in salary for purpose of this calculation. Faculty who have submitted written notice of their intent to retire/resign from the University are not eligible.

The deadline for applications to be received in the Human Resources Office will be 5:00 p.m., on the fifteenth business day following the Plan Initiation Date. The decision to participate is irrevocable once an application has been submitted. Subsequent selection to receive a retirement/resignation incentive under the methodology described below will result in separation from the university by no later than June 30, 2023. Applications by faculty members not selected will be canceled and will result in no change to the faculty members’ tenure status or pay.

Given that funding for this plan is limited, retirement/resignation incentives will be prioritized based on the distance of the salaries of applying eligible faculty members from the relevant CUPA median salary for new assistant professors. This prioritization process will help ensure the university achieves the greatest possible reduction in instructional cost as a result of implementation of this plan. In the event there is a tie for determining which faculty member is eligible to receive the incentive, priority will be given to the faculty member whose application was received first in the Human Resources Office.

The process of determining the eligible applicants who will receive retirement/resignation incentives will be completed by 5:00 p.m., on the twentieth business day following the Plan Initiation Date. Individuals selected will be notified at the conclusion of the selection process.

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¹ The Provost, working with the Office of institutional Research, will make the final determination of the appropriate degree awarding discipline to be used in instances where a faculty member does not hold a degree in the degree awarding discipline. If the CUPA Survey does not include new assistant professor information for a particular discipline, e.g., Library faculty and General Studies faculty, current median salaries of all new Southeastern assistant professors will be used.