March 2009
Early Retirement Incentive Program
On January 23, 2009, the WU Board of Regents approved a Retirement Incentive Program that was designed to assist Washburn University in implementing budget reductions. Implementation of the program was subject to the realization of a projected $250,000 gross savings in the first year.
Following the March 20, 2009 WU Board of Regents meeting, a savings of $562,000 attributable to this program was reported in the Topeka Capital Journal. The newspaper article also stated that five of the faculty members would be replaced.
The Retirement Incentive Program will pay participating employees 50% of his/her annual base FY 2009 salary and the 10% retirement contribution on this salary payment. In addition to the initial cash outlay, the university will continue to pay health insurance premiums for the early retirees for three years.
The public has been led to believe that this program had twelve faculty members participating. In fact, classified staff were the predominant beneficiaries of the program. Only one administrator took advantage of the early retirement incentive. Six (not the reported twelve) faculty members have opted to retire early.
Classified Employees
| Name | Department | Salary | Cost | Savings |
|---|---|---|---|---|
| Bero | Law | $33,627 | $18,495 | $15,132 |
| Doze | Law Library | 30,564 | 16,810 | 13,754 |
| Smith | Admissions | 25,276 | 13,902 | 11,374 |
| Brown | Computer Info Science | 28,209 | 15,515 | 12,694 |
| Cogswell | Art | 23,992 | 13,196 | 10,796 |
| Fund | History | 29,953 | 16,474 | 13,479 |
| Pressgrove | Facilities | 27,955 | 15,375 | 12,580 |
| Ritchey | Facilities | 30,326 | 16,679 | 13,647 |
| Underwood | Facilities | 26,083 | 14,346 | 11,737 |
| Classified | Total | $255,985 | $140,792 | $115,193 |
Administration
| Name | Department | Salary | Cost | Savings |
|---|---|---|---|---|
| Degginger | Athletics Department | $49,000 | $26,950 | $22,050 |
Faculty
| Name | Department | Salary | Cost | Savings |
|---|---|---|---|---|
| Cook | Education | $53,002 | $29,151 | $23,851 |
| Kerchner | Business | 80,856 | 44,471 | 36,385 |
| Reed | Computer Info Science | 44,369 | 24,403 | 19,966 |
| Eck | Business | 100,361 | 55,199 | 45,162 |
| Harden | Education | 65,138 | 35,826 | 29,312 |
| Moore | Communications | 93,508 | 51,429 | 42,079 |
| Faculty | Total | $437,234 | $240,479 | $196,755 |
| GRAND TOTAL | $742,219 | $408,220 | $333,999 |
Amount of Savings
It appears that the administration will be paying $408,220 to save $334,000 in FY 10. This savings of $334,000 will be further reduced by the insurance premium payments and the position replacement costs. With approximately $80,000 in annual health insurance premium costs over the next three years, the administration will certainly be challenged in finding the $500,000 projected savings from this program.