Retirement Study Human, Fiscal, and Physical Committee

1
Retirement StudyHuman, Fiscal, and Physical
Committee

• Presented by
• Debbie Hardy, Director of Assessment
• October 26, 2004

2
Questions to Consider

• Change How to prepare?
• How will the college be affected by employee
  retirement in next five years?
• How many employees will retire (i.e., faculty,
  classified staff, professional staff)?
• What departments/divisions will be affected?
• What strategy is needed to prepare for this
  change?

3
Retirement Study

• Determine number of employees who could
  potentially retire in next five years
• Current Employees
• Ages ranging between 50-65
• Full-time employment
• Age
• Years of Service
• Projected through academic year 2009-2010

4
Current Employees

• 202 Full-time Employees
• M59
• F143
• 74 Faculty
• M20
• F54
• 87 Classified Staff
• M28
• F59
• 41 Professional Staff
• M11
• F30

5
Retirement Eligibility

• Currently 76 employees range between 50-65 years
  of age (38 of FT employees)
• 47 of those employees could be eligible for early
  retirement beginning this year (62 of
  age/service eligible)
• 29 employees are retirement age but do not have
  years of service with college (not eligible for
  early retirement)

6
Demographics

• Gender and Ethnicity
• Status Level at Institution
• Division/Department

7
Gender and Ethnicity
N76
Black Male White Male Total Male Black Female White Female Total Female
7 17 24 6 46 52
9 22 32 8 61 68
8
Status at Institution

• N76

Faculty 33 43
Classified Staff 26 34
Administrative and Professional Staff 17 22
9
Retirement Eligibility

• 33 (43) faculty
• 26 (34) classified staff
• 17 (22) professional staff

10
Division/Department
N76
Adult Education 5 7
Allied Health 5 7
Applied Technology 3 4
Arts and Sciences 14 18
Business 9 12
Other 40 53
48
11
Division/Department

• The five academic divisions total 48 which
  includes faculty and deans
• Deans were included in this slide because of
  relationship to division
• Academic divisions with largest percentage of
  potential retirees
• Arts and Sciences 18
• Business 12
• Other category includes administrative,
  professional staff, and classified staff who are
  not included in a specific academic division
• Total 53 of potential retirees

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Retirement Policy

• Early Retirement
• Administrative Procedure 314.01
• Regular Retirement
• Administrative Procedure 312

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Early Retirement Policy

• Early Retirement Policy
• (Administrative Procedure 314.01)
• In the interest of allowing full-time college
  employees the option of earlier retirement,
  benefits and a lump-sum cash distribution are
  authorized for those employees who retire between
  the ages of fifty-five and sixty-five with 15 or
  more years of experience at PCCUA.

14
Early Retirement Policy

• Between ages 55-61
• 30 of base salary and 2 for each additional
  year over fifteen years of full-time service up
  to maximum 50 of base salary
• At 61
• 20 of base salary and 2 for each additional
  year over 15 years of full-time service up to a
  maximum 40 of base salary

15

• At 62
• 20 of base salary and 2 for each additional
  year over 15 years of full-time service up to a
  maximum of 30 of base salary
• At 63
• 20 of base salary
• At 64
• 10 of base salary
• At 65 and beyond
• 500 for long service. Employees retiring after
  age 65 shall receive no other benefits

16
Retirement Policy

• Arkansas Teacher Retirement (ATR)
• Member is eligible for full retirement benefits
  upon reaching age 60 with at least 10 years of
  service
• TIAA-CREF
• No mandatory age required by plan. Early
  retirement permitted at age 55.
• Normal retirement is last day of academic year in
  which age 65 attained.

17

• Arkansas Public Employees Retirement (APERS)
• Employee with at least ten years of credited
  service at age 65.
• Employee with 35 years of credited service my
  retire at any time after age 55.
• VALIC
• No mandatory age required by plan
• Early retirement is permitted when employment
  ceases or after age 55.
• Normal retirement is last day of academic year in
  which age 65 is attained.

18
Retirement Eligibility

• Contractual employees must file an application
  for early retirement no later than December 1 of
  the year preceding the effective date of
  retirement.
• Non-contractual employees must file an
  application no later than 90 days before the date
  they wish retirement to be effective.
• Retirement Applications are filed with the
  Personnel Office.

19
Potential Early Retirees Per Year

• Current year (2004-2005)
• 19 employees eligible to retire
• Year 1 (2005-2006)
• 5 employees eligible to retire
• Year 2 (2006-2007)
• 6 employees eligible to retire

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Potential Early Retirees Per Year

• Year 3 (2007-2008)
• 4 employees eligible to retire
• Year 4 (2008-2009)
• 7 employees eligible to retire
• Year 5 (2009-2010)
• 6 employees eligible to retire

21
Potential Early Retirees Per Year
Current Year Year l Year 2 Year 3 Year 4 Year 5
2004-2005 19 employees
2005-2006 5 employees
2006-2007 6 employees
2007-2008 4 employees
2008-2009 7 employees
2009-2010 6 employees
22
Significance of Study

• Large number of faculty could potentially retire
  at same time
• Large number of other employees are also eligible
  for retirement
• Some employees may choose to elect early
  retirement opposed to regular retirement
• Strategic planning should include process for
  dealing with these changes

23
Whats the Plan of Action?

• How will the College adapt to the changes in
  human resources?
• Recruit
• Hire
• Replace
• Reorganize