To "meet financial challenges," UWM offering employees voluntary separation incentive

MILWAUKEE (WITI) -- The University of Wisconsin-Milwaukee is offering a voluntary separation incentive to some employees to help save money in anticipation of a cut in state funding.

The incentive provides a one-time payment of half their base salary to eligible employees, who must be vested with the Wisconsin Retirement System and qualify for a full annuity as of July 1st.

Four other UW campuses have announced similar cost-saving measures since Gov. Scott Walker proposed cutting the UW System budget by $300 million over two years. UWM’s share of that cut is estimated at $40 million. The Wisconsin Legislature is still considering the budget that takes effect July 1st.

“As we have seen with other campuses, UWM’s voluntary separation program is one aspect of a multi-faceted approach to responsibly deal with the magnitude of budget cuts that have been proposed. As much as possible, we must be strategic about the vital role our faculty and staff play and how a voluntary separation program such as ours will impact UWM and, ultimately, the city, region and state,” Chancellor Mark Mone said.

The program is expected to save UWM millions of dollars during the next two years. The specific amount depends on which employees accept the offer and whether they are replaced.

“Our hard-working and dedicated employees are UWM’s greatest asset, and we will be sorry to see valued workers leave,” Mone said. “We thank them for their long service. Our hope is that this program will help us meet the financial challenges ahead in a way that maintains the high quality of education offered here and affects as few employees as possible.”

About 300 of UWM’s approximately 4,500 employees could qualify for the incentive program. The number of offers could be fewer, however, because deans and division heads will recommend to Mone which departments to include in the program, considering the cost of the incentives and whether they are needed to reduce personnel in those areas.

Employees who accept incentives cannot be rehired by UWM for two years to ensure that both employees and departments understand the program is intended to create long-term savings. This is a longer period than required by state law.

Deans and division heads must make their recommendations to Mone by April 24th, helping decide which departments will participate in the program. Eligible employees will be notified by May 1st. They must apply by May 22nd and will receive notice of the status of their applications by June 15th. Dates of separation will be set on a case-by-case basis, based on employee requests and approval of the dean or division head.

Criteria for receiving a full Wisconsin Retirement System annuity is set by the Wisconsin Department of Employee Trust Funds. State employees may qualify as early as age 57.