From: President Gann
Sent: Monday, March 23, 2009 9:33 AM
Subject: Announcement from President Gann
March 23, 2009
Dear Staff Members,
In my last update in January regarding the College’s response to the economic downturn, I highlighted several measures that have or will be implemented to reduce the operating budget to prepare for the expected reduction in endowment support over the next several years.
As I indicated in my update, employee-related expenses represent approximately 56% of the College’s core operating budget, and it will be necessary to reduce these costs in order to avoid significant budget deficits in future years. Toward this end, the College has decided to offer a voluntary early retirement plan (VERP). The VERP is intended to provide a generous retirement package to qualifying employees who choose to retire effective August 1, 2009, while also helping the College to manage its overall costs.
Subject to certain limited exceptions, the VERP will generally be available to all benefits-eligible staff members who are 55 years of age or older, and who have ten or more years of continuous service with CMC. The VERP registration period will be open from Tuesday, March 31 through Thursday, May 7, 2009. The VERP will be available to no more than twenty (20) eligible employees. The College expects to open this program on a one-time only basis.
In addition to the VERP, the College is also evaluating the feasibility of implementing an Alternative Work Schedule Program. In particular, the College is currently reviewing a number of 12-month staff positions to identify positions that could potentially be adjusted to a 9 or 10-month work schedule with a pro rata reduction in salary. We expect have a better understanding of the feasibility of implementing this program once we have assessed the results of the VERP.
Within the next week, staff members who are eligible for the VERP will receive a letter from Susan Cozzitarto, the Director of Human Resources, which will explain the VERP, including the proposed benefit structure and registration process, in greater detail.
Pamela B. Gann
UPDATE: Turns out I was informed. It is only staff.