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Nearly 300 Staff Accept Retirement Incentive
Nearly 300 Staff Accept Retirement Incentive
Durham, NC - When Duke offered a retirement incentive to University staff earlier this year, the decision to accept was easy for Kenneth Sanders.
"This package put me where I wanted to be, only a few years earlier," he said. "It opens up a big door for me because I have a lawn care service -- Top Chef Lawn Care -- that I've been running on the side for several years. Now I can enhance that and make it my full-time business."
Sanders is among nearly 300 staff who accepted the retirement incentive offered to 825 employees in May. Final numbers for staff accepting the incentive will not be confirmed until next week because employees have up to seven days to rescind their decision.
The program was restricted to staff in selected positions who are age 50 or older in 2009 with at least 10 years of service at Duke and who are active participants in the Employee's Retirement Plan. About 35 percent of the eligible population accepted the incentive plan.
The retirement incentive plan is part of Duke's ongoing efforts to reduce labor costs to help shrink the $125 million budget shortfall caused by the decline in value of Duke's endowment.
"These voluntary retirements will reduce our compensation expenses and related expenses, which will help limit the potential for involuntary layoffs later," said Kyle Cavanaugh, vice president for Human Resources. "The potential annual savings created by these retirements is at least $15 million."
Efforts to reduce compensation-related expenses are ongoing, including a vacancy management process that is focused on reducing the number of positions in the University that are filled. A retirement incentive plan is also being considered for staff who are eligible for Duke's defined contribution plan, the Faculty & Staff Retirement Plan, but details are still being worked out.
For Duke staff, the opportunity to retire earlier than expected allows them to fullfill other dreams.
Sanders, who started at Duke in his 20s as a dish washer in the West Union Building, has held a variety of jobs at Duke, from mail carrier to organizer of the Duke surplus store storage. In his current position as materials control coordinator, he keeps track of lawnmowers, weed-eaters, tractors and other grounds equipment at Duke. Like most of the people accepting the early retirement, he will retire by August 31.
Sanders said he has plans to take online courses in business and landscaping to help grow his company. In free time, he'll continue singing with the local gospel group, The Mighty Gospel Inspirations.
Like Sanders, Judy Mack accepted the retirement incentive but has "no plans to be put out to pasture," she said.
Mack, who works in the Duke Medical Center Bookstore, said Duke provided many opportunities over her 32 years, "But now I will have the time to volunteer and do things for other people."
Having cared for her dying mother, and for grandchildren and grand nieces while working full time, Mack said she feels called to be an advocate for senior citizens and children and the people who care for them.
She credited Duke's Professional Development Institute (PDI) with preparing her to step out into this different world.
"PDI helped me learn how to speak so people take me seriously, and how to look people in the eye," she said. "Now I want to go back to school to get the knowledge I need to be able to stand up and be an advocate for others."
Mack said she didn't hesitate in following her heart's leading to take retirement. But there is something bittersweet in leaving. "I'm going to miss Duke, and all the inspiring people I've met here," she said.
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