[Cobo] Buyout program

[Elliott, Kathy]

OSU has not offered a buyout or early retirement  plan, but Ag Extension did. I have attached a  copy and below is the Board item.

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H-1      Approval to Implement a Retirement/Separation Incentive Program for DASNR Extension and Research Employees  (OSU-STW)

Board approval is requested to authorize the Division of Agricultural Sciences and Natural Resources (DASNR) to implement a voluntary retirement/separation incentive program of DASNR Extension and Research employees.

Eligibility includes any DASNR employee, retiring October 1, 2009 through June 30, 2010, whose appointment is 50% or more, on an annualized basis (based on FY09 funding), with state appropriated and/or federal [Hatch, McIntire-Stennis, or Smith Lever 3 (b) & (c)] funds, through the Oklahoma Agricultural Experiment Station, the Oklahoma Cooperative Extension Service, or a combination of the two.

The DASNR employee must also have at least eight (8) years of continuous OSU service (dating from retirement/separation date) and meet the age and service requirements for the Teachers' Retirement System of Oklahoma (reduced or regular or retirement benefits), optional federal retirement or social security retirement (reduced or full retirement benefits).

Retiring or separating employees will have the option to select either 1) a lump sum retirement incentive payment equal to 55% of their final annual gross salary, but not greater than $60,000, or 2) annual retirement incentive payments paid in installments over the next two years, not to exceed $70,000.

There are approximately 250 employees eligible for this program.  It is anticipated that 75 to 100 employees may exercise this option to retire or separate from employment.  Assuming that 75 employees accept the incentive to retire, the result would be a total estimated salary savings of $4.5 - 5.0 million for the two agencies.

The detailed documents supporting the plan are subject to OSU Legal Counsel review and approval.

Kathy Kamm Elliott,  MBA, CPA, CFE
Associate Vice President and Controller
Oklahoma State University
207 Whitehurst Hall
Stillwater,  OK  74078-1041
405.744.4188
405.744.6404 (Fax)
kathy.elliott at okstate.edu<mailto:kathy.elliott at okstate.edu>

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From: cobo-bounces at lists.onenet.net [mailto:cobo-bounces at lists.onenet.net] On Behalf Of Mike Coponiti
Sent: Wednesday, February 24, 2010 8:08 AM
To: COBO at onenet.net
Subject: [Cobo] Buyout program

To All:

If your institution has offered a "buyout" program or "early" retirement plan , I would be interested in how it was structured and implemented.

Any assistance would be appreciated.

Thanks,

Mike Coponiti
Vice President of Business and Finance
1727 West Alabama Ave
Chickasha, OK  73018
405.574.1333
405.574.1397 (fax)

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