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“Eligible employees are giving serious consideration to retiring prior
to the July 1, 2012, deadline,”
said Robert Crouch, Assistant Vice President of
Human Resources.
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SURS HAS undertaken surveying all
retiree applicants as to their reasons for choosing to retire at this time. The
key contributing factor was the change to the MPF and the resulting reduction
in lifetime benefits after July 1. The majority of those surveyed also revealed
that they plan to seek continued employment after their retirement. The survey did not reveal where they planned
to seek work, but their ability to return to UIC may be limited as the Illinois
State Legislature is currently discussing potential constraints on rehiring
retirees.
“THE POTENTIAL loss of institutional knowledge is critical
for UIC, with nearly one in every five employees (17%) eligible to retire,”
noted Crouch. One department may lose up
to 44% of its employees, while another may lose up to 466 people. Depending
upon the normal rate of turnover in any given department, the potential impact
for the institution could be even higher and longer-ranging. Those who choose
not to retire by the July deadline will remain eligible to retire at any time
and more will become eligible throughout the year. “Logic would suggest that
every month we could potentially lose more mission-critical staff,” Crouch
highlighted. “This is not a one-time situation, but a continuing concern.”
CROUCH STATED that “many departments will be losing
knowledgeable and seasoned staff critical to operations. It is crucial to plan
for budgetary requirements and create succession strategies. Departments should
prepare themselves with succession plans and make sure their budgets will
accommodate vacation benefit payouts.”
THE
POTENTIAL surge in
retirement notifications will lead to an increase in Central HR and
departmental HR work. It is crucial that departmental HR staff are prepared and
equipped to process the retirement notices, while balancing their regular job
duties, to prevent any delays in the payment of retiree benefits. “I strongly
encourage Deans and department heads to consider budgets, knowledge retention,
and succession plans to ensure organizational readiness should UIC experience a
significant surge in retirements,” Crouch said.
“IT IS imperative that retiring
employees communicate at the earliest possible time to their department the
intent to retire so that retirement notices can be processed in a timely
manner,” Crouch said. The SURS website does not offer an absolute deadline for
filing, but states that “SURS would like to receive your application 60-90 days
prior to your effective date of retirement.” To begin the process:
- Employees should inform their
department supervisor of the intent to retire.
- Employees should then contact Central HR.
- Contact SURS. They will provide
clarification on entitlements and retirement income.
LOOKING AHEAD to potential changes, it is
imperative that the University is prepared for the impending losses in human
capital with succession plans or alternative human resource strategies in
place. “Departments need to also
consider budgetary implications that may result from the need to make benefit
payments on an employee’s retirement,” Crouch emphasized.
CENTRAL
HUMAN Resources directly contacted employees who are eligible for retirement
and informed them by e-mail or letter of retirement planning seminars held
earlier in April.
THESE
FOUR sessions emphasized the steps employees can take to facilitate smooth
processing and administration of their benefits if they choose to retire at
this time. This information was designed to be useful in helping employees plan
for retirement. .
FOR
MORE information, call Susan Balmes
at UIC Human Resources at (312) 355-5230.
Monica
Walk contributed to this article. See also “State employees rushing to retire”
from the Springfield Journal-Register, April
14: http://www.sj-r.com/top-stories/x1157751000/State-employees-rushing-to-retire
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