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Early Retirements To Save IU $6 Million Annually

An early retirement incentive designed to stave off potential future job cuts will save the university $6 million annually, IU officials announced today.

IU Administration Building

Photo: WFIU

IU expects to save $6 million annually after nearly 500 employees opt into an early retirement incentive.

An early retirement incentive designed to stave off potential future job cuts will save the university $6 million annually, IU officials announced today.

Dan Rives, IU’s associate vice president for human resources, said in a statement results of the plan have “exceeded the university’s expectations.”

Of more than 2,500 eligible employees, 572 applied for the early retirement incentive. Some of the 495 employees whose applications were approved will begin their retirements as early as June 30.

With the university’s loss of more than $90 million in state funding over the past three years, IU officials branded the plan as a cost saving measure. The plan’s website says savings in salary and benefits allows the university to “redirect positions to focus on higher priorities.”

Other state universities have used early retirement incentives to ease strain on their budgets. Last year, more than 500 Purdue employees and more than 150 Indiana State employees opted to take similar packages.

Kyle Stokes

Kyle Stokes joined WFIU/WTIU in 2011 as an education reporter and blogger for StateImpact Indiana, a collaborative reporting venture between WFIU and NPR News. He comes to Bloomington from Columbia, Mo., where he was a producer and reporter for NPR member station KBIA-FM and NBC affiliate KOMU-TV. Originally from Minneapolis, Minn., Stokes is a proud graduate of the Missouri School of Journalism and an even prouder Minnesota Twins fan.

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