U. employee contracts see change

and Andrea Ahles University employees questioned top officials about the effects of administrative restructuring on retirement and benefit plans in two separate sessions last Friday afternoon. At the beginning of each session, Executive Vice President John Fry explained why reorganization was important and the various ways it would be implemented. The A-3 Assembly, which represents support staff and hourly wage employees, organized the forum. During his prepared remarks, Fry said the University will have to offset reduced state and federal funding, increased scrutiny by the Internal Revenue Service on universities' tax practices and pressure to cut undergraduate tuition. He added that money saved as a result of restructuring will also be used to further the University's strategic goals for the future, including earning a top 10 position in annual rankings. Clint Davidson, vice president for Human Resources, briefed those in attendance about the University's efforts to help laid-off employees find new jobs at Penn or elsewhere. "We are larger than we can afford to be to meet our challenges in the future," Davidson said. Roughly 30 percent of laid-off University employees have found other jobs at Penn with the help of an in-placement program run by the Division of Human Resources, according to Davidson. That rate may increase as the department develops the program and supervisors who hire employees become more aware of in-placement possibilities, he said. Proportionally, more positions will be eliminated from the professional, salaried ranks than those of the A-3. Following the presentations, employees asked specifically about recent changes affecting retirement plans. As of July 1, three significant changes to the plans will take effect. Employees must work at the University for 10 to 15 years, depending on at what age they retire, before becoming eligible for benefits. Currently, an employee qualifies based on the total number of years he or she has worked at Penn. But beginning in July, an employee must have an uninterrupted work period to receive benefits upon retirement. If an employee leaves before meeting the service requirement, he loses the credit for his years at the University. Also, retirees cannot add new dependents to their University-sponsored health insurance after June 30. Although retirement benefits will change in July, there will be no advantage for employees retiring before then. Laid-off employees receive a month of severance pay plus one week of pay for each year after their initial two years at the University. Debra Smiley, a member of the A-3 executive board, said the forum was worthwhile but should have included more time for questions from the audience.