Early Retirement Plan Saves IU $6 Million

IU will save $6 million a year in salaries and benefits for employees who opted to take an early retirement incentive. (Photo courtesy Indiana University)

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.