Regents look to offer third retirement incentive in face of state cuts

In the face of state funding cuts, the Board of Regents Office is looking to offer its third early-retirement incentive to staffers in as many years after projecting savings from the previous two at $2.4 million.

The nine-member volunteer board next week will consider approving the proposed 2017 early-retirement incentive program for its 19 office staffers - who provide administrative and professional support for the board, which governs Iowa's public universities.

The regents in the last legislative session saw big reductions in state support, and retirement incentives - like the one proposed for the board office - previously have been used across the system to save money in the form of senior salaries dropped from the payroll.

The board office, for example, offered early retirement incentives in 2015 and again last year, and a total of eight employees took advantage. Between the 2016 and 2021 budget years, those retirements are expected to save about $2.4 million, according to board spokesman Josh Lehman.

The University of Iowa offered incentive programs in 2009, 2010, and 2015 in the midst of budget cuts and new efficiency mandates. Savings exceeded expectations in 2009, according to UI officials, and the campus in 2015 estimated savings from that year's program at $5.9 million in the first year and $27.5 million over five years - although auditors have since questioned those estimates.

When asked about the impetus for the board's current early-retirement proposal, Lehman said, the board 'is always looking for ways to be more effective and efficient with taxpayer dollars.”

In addition to taking back tens of millions from the regent universities, the state recently cut its support for the board office from $1.1 million in 2016 to $794,714 for both the current budget year and the next, which begins July 1.

Lehman said the retirement incentives also 'help offset the appropriation reduction.”

Benefits of the proposed incentive, available to employees 57 or older who have at least 10 years of continuous regular benefit-eligible employment with the board, include payment of accrued vacation and sick leave; payment of the board's share of health and dental coverage for five years; and payment of the employer's and employee's retirement contributions for three years and the employer's contribution for another two years.

Eligible employees must apply for the program between June 9 and July 24. Those who choose to participate will have seven days to take back that decision following approval. Those who take the incentive package must retire no later than Dec. 31, according to board documents.

Because regents have not yet approved the program, 'individuals that might be eligible haven't yet been contacted about it,” Lehman said, and the regents office has not calculated possible savings.

A review of staff members' online profiles indicates seven meet the requirement of 10 years of continuous service. It's unclear how many of those staffers meet the age requirement.

The board's 2015 early-retirement program is at the center of an age and gender discrimination lawsuit filed by the board's former spokeswoman, who said she was treated unfairly before her position was cut and not given the information she needed to decide whether or not to take the incentive.

Sheila Koppin - who had been with the board 29 years before her position was cut in June 2015 - in April filed a lawsuit against the board and Donley, accusing him of misleading her about his plans to replace her.

The lawsuit asks the court to award her lost pay and benefits and to reinstate her to her former position or give her front pay in lieu of reinstatement.

'Had Donley told Koppin that her position was being eliminated, or even that it was likely to be eliminated, Koppin would have elected early retirement and received the benefits the board's (early retirement program provided,” according to the lawsuit.

l Comments: (319) 339-3158; vanessa.miller@thegazette.com