1,400 University of Iowa employees eligible for early retirement program

IOWA CITY - About 1,400 eligible University of Iowa employees this week can start applying for an early retirement incentive program after the Board of Regents on Thursday approved the offering aimed at improving efficiency on campus.

Eligible employees for the UI's 2015 early retirement incentive must be 57 years old and have at least 10 years of continuous regular benefit-eligible employment as of Jan. 31. The university predicts $21 million in potential savings from the program, according to Tom Evans, general counsel for the Board of Regents.

UI Health Care employees are not eligible to participate in the program, as the hospital is looking to grow its staff, said UI spokesman Tom Moore. Employees on phased retirement also can't apply to participate in the early retirement program.

Those who do qualify must apply before March 6, and they have seven days to revoke their selection if they're approved. Anyone approved for the program must fully retire by June 30, according to Board of Regent documents.

The incentive is tied to an efficiency review of the state's public universities aimed at cutting costs and improving customer service. The institutions so far are implementing a dozen recommendations from the survey expected to save millions and eliminate hundreds of jobs across the three campuses.

Officials with the Board of Regents and the universities have said they hope to accomplish those job cuts through attrition, and UI President Sally Mason said the early retirement program could ensure that happens. The program's benefits include payment of accrued vacation, payment of accrued sick leave not exceeding $2,000, payment of the standard share of health and dental coverage for five years, and payment of the employer's and employee's retirement contributions for three years, followed by two years of just the employer's contribution.

UI Vice President for Human Resources Susan Buckley told employees during a recent staff council meeting that officials will decide whether to approve applications based on potential benefits to the university. Such benefits include potential savings, talent retention within a department, and other potential consequences, such as morale among remaining employees.

Buckley said her office must complete its reviews by April 14. Anyone denied can appeal.

UI employees were offered early retirement incentives in 2009 and in 2010 as part of budget cuts. Those programs netted 423 participants and about $78 million in savings.