Voluntary budget-reduction options for employees
President Davidson announces pay reduction for senior execs, as well as voluntary separation incentive, furlough and leave options for employees; follow-up town hall today at 3 p.m.
May 21, 2020
At the President’s Cabinet meeting Wednesday, President Janine Davidson, Ph.D., shared additional cost-reduction measures that will help Metropolitan State University of Denver meet an expected $14 million budget shortfall for fiscal 2020-21.
Among those was a 10% pay reduction for Davidson, vice presidents, academic deans and general counsel. That temporary reduction will remain in place for the fiscal year for Davidson. Senior executives will move to a 5% reduction Jan. 1 through June.
“I’ve asked our community to make some tough budget choices and will continue to do so,” Davidson said. “This is one way that senior executives can demonstrate our commitment to the educational mission and economic viability of MSU Denver.”
Davidson also announced three voluntary budget-reduction incentive options for personnel: furloughs, leaves of absence without pay and voluntary separation incentive. University leaders will host a virtual town hall to answer questions about these options today at 3 p.m. Questions submitted in advance and during the event will be addressed by Provost Vicki Golich, Ph.D.; Interim Provost Bill Henry, Ph.D.; Chief Financial Officer George Middlemist, Ph.D.; Associate Vice President of Human Resources Stacy Dvergsdal; and Associate Director of Talent Strategy Angela Bender.
Below are highlights for each option. For full details, visit this Human Resources Frequently Asked Questions page. Employees will have until June 5 to notify their supervisors if they are interested in requesting one of these options.
Offered to all staff
Employees can request one to four days per month and will need to collaborate with their supervisors to request approval. Benefit elections will not change.
Voluntary leaves of absence without pay
Offered to faculty, classified staff and professional staff
Faculty can request an LOA for a semester or an academic year. All faculty LOAs will need prior approval from the department chair and dean. This will not affect current employee benefit elections. Faculty will need to pay the employee portion of their benefit payments.
Professional and classified staff can request an LOA for a period of time starting immediately. Leave can begin the month following approval and can be for the 2020-21 fiscal year. Employees should request approval from their supervisor and vice president with a plan for how work can be distributed. Employees will need to pay the employee portion of their benefit payments.
Voluntary separation incentive
Offered to faculty and classified staff
Faculty will have two options: Voluntary Separation Incentive or Transitional Retirement. Faculty interested in the first option will retire effective July 31 or at the end of their current contract. Faculty will be offered either two months of salary or a $650 benefit subsidy to help with COBRA costs for 18 months. The tuition benefit will be available for the retired faculty member choosing one of these incentives up to five years after retirement.
Faculty interested in transitional retirement can request a one- to two-year option, during which they will receive 50% pay, be tasked with half the workload and be required to teach primarily online. Benefits will not change; however, the effective date of retirement will depend on the employee’s retirement program and the current contract pay schedule.
Classified staff can also opt for the voluntary separation incentive effective the month following approval. They will be offered either two months of salary or a $650 benefit subsidy to help with COBRA costs for 18 months. The tuition benefit will be available for the retired staff member choosing one of these incentives up to five years after retirement.
These voluntary options come as part of Phase Two of a cost-reduction process laid out by Davidson in a May 6 email to the community.
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