January 16-17, 2003
Authorization to Offer a Voluntary Retirement Incentive Plan for Employees of the Montana State University Extension Service
The Board of Regents of Higher Education authorizes the MSU Extension Service to offer a Voluntary Retirement Incentive Plan to select employees. The Board of Regents increase the MSU Extension Service FY 03 HB2 Smith-Lever authority by up to $280,000, from $2,278,065 to $2,558,065 to accommodate the cost of the retirement incentive. As the federal government prohibits using federal dollars to pay retirement incentives, we will be substituting payroll expenses of some employees paid on state general fund to federal Smith-Lever funds in order to use state general funds to pay the retirement incentive costs.
Summary: This plan is being proposed by Montana State University Extension Service (MSU-ES) to maximize personnel savings by offering incentives for employees to voluntarily retire. Several groups of employees covered by federal retirement in Extension positions are eligible to participate in the proposed MSU-ES Retirement Incentive Plan. These categories include:
$ employees who are currently eligible to retire under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), or will be eligible for an optional (other than early optional) retirement as of June 30, 2003, are eligible to participate in this Plan.
$ employees who will be eligible to retire under the Voluntary Early Retirement Authority, when approved by the Office of Personnel Management, under the CSRS or FERS systems as of June 30, 2003, are eligible to participate in this Plan.
$ employees who are eligible for a deferred retirement under the CSRS or the FERS system as of June 30, 2003, are eligible to participate in this Plan.
Employees who are not eligible to retire under one of the above provisions under CSRS or FERS as of June 30, 2003, are not eligible to participate in this proposed Plan.
Under no circumstances will age, race, color, religion, creed, national origin, sex, disability, military status, sexual orientation or political affiliation be employed by any MSU-ES official in making any decision under this proposed Plan.
The Montana State University Extension Service may offer participating employees a post-retirement contract under the MUS policy regarding post-retirement contracts, as the MSU-ES deems necessary, on a case-by-case basis.
Plan description: The Montana State University Extension Service will pay the employee an incentive that is equal to 15% of that individual’s ending FY03 base annual salary rate, as listed on the employee’s Board of Regents’ contract or Letter of Appointment. In addition, MSU-ES will pay the employee’s portion of health care premiums for one year following the effective date of retirement.
Proposed plan attached.