Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Personnel And Compensation topic
No spam. Unsubscribe anytime.
Trustees approve voluntary retirement incentive at UT Health Science Center to generate campus savings
Summary
The executive committee approved a retirement incentive offering six months' salary as a lump sum to eligible employees at UT Health Science Center; trustees were told the program could reduce payroll by roughly half the affected salaries on an ongoing basis.
The University of Tennessee executive committee approved a resolution to authorize a voluntary retirement incentive program for UT Health Science Center employees. The program offers a one‑time lump sum equal to six months of salary to employees eligible for retirement, with the offer effective Dec. 31 or earlier.
David Miller, a university staff member presenting the proposal, said about 626 employees are eligible and historical participation in similar programs is approximately 20 percent, which would yield roughly 125 separations. "The salary total annually is about 12,200,000.0 for those employees," Miller said, and the campus anticipates ongoing savings of about half that amount, "so about $6,000,000 that would be invested in other compensation, concerns and the campus's strategic priorities."
Trustees voted by roll call to approve the resolution. The recorded votes were: Trustee John Compton, aye; Trustee DeCosta Jenkins, aye; Trustee Bill Rhodes, aye; Trustee Donnie Smith, aye; Trustee Jamie Woodson, aye. The motion passed unanimously.
Why it matters: The university said the incentive is intended to reduce payroll obligations and reallocate recurring savings to strategic campus priorities. Trustees and staff emphasized the timing needed for employees to consider the offer and the campus goal of reinvesting savings into compensation and priorities rather than permanent headcount reductions.
The committee asked staff to notify employees, to model anticipated savings and to return to trustees with any material changes to the assumptions or estimated fiscal impacts.
