Important Information on Retirement Options and Workforce Reductions

04/13/20

Contributed by News

Dear Faculty and Staff:

As we continue to practice social distancing and observe stay-at-home orders in New York State, I hope this message finds you and your families well and adjusting to our new reality. 

As we shared at the All-Faculty-and-Staff Meeting on March 31, 2020, the senior leadership team has been working with leaders across campus to address organizational needs and objectives at the college, including the necessity to adjust the size of our workforce as a result of the coronavirus pandemic. While the current situation is certainly heightening and accelerating the need to examine our staffing levels, it is not in and of itself the primary driver. Rather, the need to recalibrate the college’s size was clearly outlined in our strategic plan. We now need to begin taking the difficult steps necessary to achieve that goal.

Today, we write to share information regarding voluntary and involuntary reductions. It is important to the college to offer, to the extent we can, voluntary workforce reduction incentives that are beneficial to and solely at the option of our employees. We want to make clear that the number of voluntary reductions will not necessarily impact the overall number of involuntary reductions, most of which are based on changes in business need. However, both are necessary in order to preserve the college’s long-term future. We encourage you to consider whether one of the following voluntary reduction options is of interest to you:

2020 Retirement Incentive
Effective April 21, 2020, eligible faculty and staff will be able to take advantage of a one-time incentive to retire from Ithaca College. Employees who are at least 60 years of age and have a minimum of 10 years of service as of June 30, 2020, who choose to retire prior to July 1, 2020, will receive a one-time payment equivalent to 6 months of their salary, in addition to accrued and unused vacation. Faculty may augment this with a terminal one-semester sabbatical, with Dean and Provost approval. The requirement to return from sabbatical will be waived under this plan.

Employees who elect the retirement incentive will remain eligible to be covered by Ithaca College health benefits until they reach eligibility for Medicare. Please see the full plan document for additional details.

Phased Retirement
Ithaca College already has a robust phased retirement program, which is available to eligible faculty and staff. This program allows employees to reduce their effort by up to 50% for a period of one semester or up to three years as a way to transition to retirement. We will temporarily adjust the eligibility requirements for this program to 55 years of age and 10 years of service as of May 31, 2020. In addition, we will waive the notice requirements and accept applications through May 31, 2020, for an effective date of July 1, 2020. Employees will retain benefits eligibility as long as their effort is 50% or greater, and their salaries will be prorated based on effort percentage.

Voluntary Reduction in Scheduled Hours
Employees who are not eligible for the phased retirement program may consider a voluntary reduction in hours worked, with supervisory approval. This could include reducing overall scheduled hours by as much as 50% or converting a 12-month position to a 9-, 10-, or 11-month position. For example, an employee who currently works 37.5 hours or 40 hours per week could reduce to 30 hours per week if they and their supervisor are able to adjust their responsibilities to be accomplished in the shorter workweek. Employees who elect this option will continue to be benefits eligible as long as their effort remains 50% or greater, and their salaries will be prorated based on actual hours worked.

Unpaid Leave
Based on individual circumstances and with supervisory approval, employees may voluntarily elect to take an unpaid leave. Benefits eligibility would continue during this period as long as it is less than 6 months. Employees would be billed for the employee portion of their insurance premiums.

Voluntary Salary Reduction
As President Collado shared in her message on April 9, 2020, the senior leadership team and many other leaders across campus have elected to reduce their salaries for FY21 to support institutional financial aid. With the acknowledgement and understanding that each employee has their own personal circumstances and that some may not be in a position to participate, all faculty and staff are invited to participate as their personal circumstances may allow.

If you are interested in pursuing any of the above options, please complete the application.

These requests are confidential and will be submitted directly to HR with a copy to your supervisor. We will work with you to answer any questions, facilitate communication with your department, and complete necessary paperwork. Submitting a request does not represent a final decision for the employee, but is rather an expression of interest. 

Involuntary Reductions
After extensive deliberation and thorough exploration of all possible alternatives, we have decided to issue furlough notice to some employees who are currently unable to perform most or all of their job-related duties in a remote setting or when students are away from campus. Supervisors are having individual conversations this week with those employees in this category who will be impacted. Our hope is that we will be able to bring many back to work once we are able to return to normal campus operations.

A critical factor in this decision was the recent passage of the federal CARES Act, which provides those who are eligible for unemployment insurance with additional benefits, including a $600 weekly supplement to the weekly amount provided by the state. The CARES Act is designed to assist employers and employees with situations like ours, in which employees cannot perform most or all of their job-related duties due to the COVID-19 response.

Through unemployment insurance and the additional federal supplement, most of our impacted employees will receive income that is at least comparable to their current weekly earnings. In addition, employees are eligible for continuation of health insurance through at least December 2020. It is important that staff and the college utilize critical resources made available by state and federal initiatives as we navigate these unique circumstances and unforeseen budgetary impacts.

In addition, individuals who are receiving a furlough notice who qualify for the retirement incentive will be eligible to take advantage of that program.

We want to emphasize that all impacted employees are valued members of our community, and they are crucial to providing the inclusive, student-focused experience that is the hallmark of Ithaca College. We hope to welcome many back when our campus is fully operational.

Staff who are currently able to perform their responsibilities remotely or who have been temporarily reassigned to other duties will continue to be paid on their normal pay cycle. However, organization assessments have been in progress over the last several months in alignment with the strategic plan and we anticipate that there will be additional furloughs or workforce adjustments over the next several weeks.   

We understand the anxiety that this uncertainty can cause and can assure you that we are trying to be thorough and thoughtful, ensuring that all other available options are exhausted before impacting individuals’ employment.  Thank you in advance for your patience and resilience during this difficult time. Tomorrow, we look forward to seeing many of you in the All Faculty and Staff Meeting during which we will try to answer as many of your questions as possible. 

Sincerely,

Hayley Harris
Vice President for Human Resources and Planning

La Jerne Terry Cornish
Provost and Senior Vice President for Academic Affairs

0 Comments



https://www.ithaca.edu/intercom/article.php/20200413160625315