M E M O R A N D U M

							May 11, 2010

TO:	Members of the Board of Trustees		

FROM:	Nancy L. Zimpher, Chancellor

SUBJECT:	2010 Retirement Incentive Program (NYSUT)


        I recommend that the Board of Trustees adopt the following resolution:
Whereas legislation has been enacted in the 2010 legislative session (Ch. 45 L. 2010) to establish a mandatory retirement incentive program for certain eligible employees of the State University�s State-operated institutions, among others; and
	Whereas benefits of the retirement incentive program are available to employees (�Eligible Employees�) at the State-operated institutions who are members of New York State United Teachers affiliated bargaining units, who are between the ages of 55 and 61, and who have between 25 and 29 years of creditable service in the New York State and Local Employees� Retirement System or New York State Teachers� Retirement Systems; and, 

	Whereas it is expected that the retirement incentive legislation will assist the University in achieving permanent cost savings and in preparing for the 2010-2011 academic year; and 

	Whereas Ch. 45 L. 2010 requires the State University Board to establish an open period (�Open Period�), of no fewer than 90 days ending no later than December 31, 2010, during which an Eligible Employee at a State-operated campus may elect to participate in the retirement incentive program; now, therefore, be it

	Resolved that the Board of Trustees establishes the Open Period as the period between October 3, 2010 and December 31, 2010; and be it further

	Resolved that the Chancellor, or designee, be, and hereby is, authorized to take such actions as may be necessary and appropriate to implement the enacted retirement incentive program for Eligible Employees.


Background

	Chapter 45 L. 2010 authorizes a mandatory retirement incentive program for the 2010-2011 fiscal year for certain employees at the State University�s State-operated institutions, among others.    Members of NYSUT affiliated bargaining units who are members of the New York State and Local Employees� Retirement System and New York State Teachers� Retirement System are eligible to elect to participate.   The legislation requires action by the State University Board of Trustees to designate the open period (�Open Period�) during which eligible employees may elect to participate.  The Open Period must be ninety days in length and may not extend beyond December 31, 2010.  

	By adoption of this Resolution, the Board establishes the Open Period as the period between October 3, 2010 and December 31, 2010.
 
	Briefly, the legislation includes the following key elements:

(a) Participation in the program is open to members of NYSUT affiliated bargaining units.

(b) Coverage includes members of the New York State and Local Employees� Retirement System and the New York State Teachers� Retirement System in Tiers 2, 3 and 4.

(c) Eligible employees must be at least 55 years of age and have at least 25 years of service as of the date of retirement.

(d) Employees retire during an open period of 90 days.

(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.






Board Resolution	-2-	May 11, 2010