M E M O R A N D U M June 29, 2010 TO: Members of the Board of Trustees FROM: Nancy L. Zimpher, Chancellor SUBJECT: 2010 Optional Retirement Programs I recommend that the Board of Trustees adopt the following resolutions: Whereas legislation has been enacted (Ch. 105 L. 2010, A11144) that offers two retirement incentives, set forth in Parts A and B of the legislation, to certain eligible employees of the State-operated campuses, the statutory and contract colleges, and System Administration; and Whereas the legislation will assist the University in achieving permanent cost savings and in preparing for the 2010-2011 academic year; now, therefore, be it Resolved that the State University Board of Trustees elects to provide employees of the State-operated campuses, the statutory and contract colleges, and System Administration with coverage of Parts A and B of the retirement incentive legislation. For individual State-operated campuses and the statutory and contract colleges, each President or unit head, or designee, as the case may be, shall determine which titles shall be eligible for participation in the program, and for System Administration, the Chancellor, or designee, shall determine which titles shall be eligible for participation; and, be it further Resolved that the Chancellor, or designee, with respect to System Administration, and the Presidents and unit heads, or designees, with respect to the State-operated campuses and statutory and contract colleges, respectively, be, and hereby are, authorized to take the necessary actions to implement the enacted retirement incentive programs for those eligible employees, including determining the date or dates upon which the open periods of not less than thirty days nor more than ninety days for Part A and of ninety days for Part B shall commence. Background Legislation has been enacted (Ch. 105 L. 2010, A11144) that authorizes two retirement incentive programs for the 2010-2011 fiscal year. The legislation includes an elective program, set forth as Part A, for members of the New York State and Local Employees� Retirement System (�ERS�), New York State Teachers� Retirement System (�TRS�), and SUNY Optional Retirement Program (�ORP�), and an elective program, set forth as Part B, for members of the ERS and TRS. The legislation requires action by the State University Board of Trustees to elect to participate in Part A by August�31, 2010 and in Part B by September 1, 2010. Various provisions of the legislation require decisions regarding eligible titles, eligible employees, open periods, and other matters relating to the retirement incentive programs. The legislation provides that the board of trustees of each community college under the program of the State University shall determine whether to participate in the Part A and Part B options. By adoption of this Resolution, the Board elects to extend coverage of the Parts A and B of the retirement incentive legislation to eligible employees of the State-operated campuses, the statutory and contract colleges, and System Administration. The legislation includes the following key elements with respect to Part�A: (a) Coverage includes members of ERS, TRS, and ORP. (b) Eligible employees must be at least 50 years of age with a minimum of ten years of service as of the date of retirement. (c) The State University must identify the titles that will be eligible to participate in the incentive program. (d) To avoid eliminating positions, the State University is required to develop a savings plan. (e) Employees retire during open periods of at least 30 days, but not longer than 90 days. The open periods may not extend beyond December 31, 2010. (f) An ERS or TRS member eligible for the incentive would receive one month�s additional retirement service credit for each year of credited service to a maximum of thirty-six months. The ERS and TRS costs are amortized over five years. (g) An ORP member eligible for the incentive would receive an employer contribution to the member�s retirement account of one-twelfth for each year of service multiplied by 15% multiplied by the ORP member�s salary as of March 1, 2010, not to exceed 45% of such salary. The legislation includes the following key elements with respect to Part�B: (a) Coverage includes members of ERS and TRS in Tiers 2, 3 and 4. (b) Eligible employees must be age 55-61 and have 25-29 years of service as of the date of retirement. (c) The State University must identify positions which will be excluded from the incentive because they are critical to the maintenance of public health and safety. (d) Employees retire during an open period of 90 days to end no later than September 30, 2010. (e) An employee eligible for the incentive would be able to retire without the reductions normally required of Tier 2, 3 and 4 members under age 62 with fewer than 30 years of service. O:\Resolutions\June 2010\opt retirement program.doc - 3 - Board Resolutions June 29, 2010