Durham, NC - The staff retirement incentive plan offers a larger pension and earlier eligibility for retiree health insurance for those who accept it. The incentive is offered to University staff in selected positions who are active participants in the Employee's Retirement Plan; age 50 or older during 2009; are scheduled to work at least 20 hours per week and have more than 10 years of credited service, as of March 31, 2009. The deadline for enrollment is July 6; Health System employees are not eligible for the incentive.

"This one-time incentive program will help reduce the number of overall positions at the University, reducing overall compensation expenses and limiting the potential for involuntary layoffs later," said Kyle Cavanaugh, vice president for Human Resources.

Cavanaugh shared his thoughts on a few questions raised since the retirement incentive was announced at a Primetime employee forum in April.

Q: How much is the incentive worth?

The financial impact of the staff voluntary retirement incentive will be based on a combination of how many people choose to participate and how many positions are eliminated. The incentive credits eligible staff in the Employees Retirement Plan with five extra years of service and five extra years of age. Each employee's calculation is based on his or her salary history and years of service. The incentive provides each employee an enhanced pension.

Q: Where is the money coming from?

The Employees Retirement Plan is a pension plan that is funded through money that is separate from the annual operating budget. This money cannot be used for purposes other than providing retirement benefits.

Q: Is Duke going to offer a retirement incentive to exempt faculty and staff?

We are exploring a variety of models related to an incentive plan for people enrolled in the Faculty and Staff Retirement Plan. However, that plan is different from the plan for staff in the Employees Retirement Plan. The Employees Retirement Plan is a pension plan paid entirely by Duke. The Faculty and Staff Retirement Plan is funded by staff and Duke's contributions and is more susceptible to market forces depending on asset allocation. Work continues on the possibility of a plan for exempt faculty and staff, and a final decision should be made soon.