Spring Break
Board passes retirement fund plan
by Harry Shipps
Assistant News Editor
News | 5/19/09
Posted online at 3:13 AM EST on 5/19/09
The University Board of Trustees unanimously approved a plan at its May 15 meeting to suspend University contributions to the retirement fund for faculty and staff for one year, effective when fiscal 2010 begins July 1, according to Faculty Budget Committee Chairman Prof. Peter Conrad (SOC).
The plan will save the University almost $7.4 million, Conrad said. The projected budget deficit for fiscal 2010 will remain at $8.9 million, according to an e-mail from Executive Vice President and Chief Operating Officer Peter French.
Conrad originally told the Justice that the projected budget deficit for fiscal 2010 had dropped to $7.8 million because of an upswing in the economy. However, after learning that French placed the deficit at $8.9 million, Conrad said that because French provides him with financial figures, French's current figure should be taken as correct.
Conrad explained that the decision to suspend University contributions to retirement funds was made when the deficit was projected at $8.9 million.
"While the current University contributions are a fixed percentage based on an individual's salary, all faculty and staff will still be eligible to make individual pre-tax contributions to their own retirement accounts," French wrote in an e-mail to the Justice. "We believe that the suspension of the University's retirement contribution will cover a substantial part of next year's operating deficit, and like colleges and universities across the country, Brandeis is actively engaged in looking at longer-term solutions for our fiscal stability," he explained.
According to Conrad, the Faculty Budget Committee considered several options for covering the budget deficit including furloughs that temporary leaves without pay, pay cuts, layoffs and the suspension of retirement contributions, when developing the plan. For example, Conrad said that in order to cover the deficit through pay cuts, the University would have needed to cut the salaries of faculty and staff earning over $50,000 annually by almost 12 percent.
The plan will save the University almost $7.4 million, Conrad said. The projected budget deficit for fiscal 2010 will remain at $8.9 million, according to an e-mail from Executive Vice President and Chief Operating Officer Peter French.
Conrad originally told the Justice that the projected budget deficit for fiscal 2010 had dropped to $7.8 million because of an upswing in the economy. However, after learning that French placed the deficit at $8.9 million, Conrad said that because French provides him with financial figures, French's current figure should be taken as correct.
Conrad explained that the decision to suspend University contributions to retirement funds was made when the deficit was projected at $8.9 million.
"While the current University contributions are a fixed percentage based on an individual's salary, all faculty and staff will still be eligible to make individual pre-tax contributions to their own retirement accounts," French wrote in an e-mail to the Justice. "We believe that the suspension of the University's retirement contribution will cover a substantial part of next year's operating deficit, and like colleges and universities across the country, Brandeis is actively engaged in looking at longer-term solutions for our fiscal stability," he explained.
According to Conrad, the Faculty Budget Committee considered several options for covering the budget deficit including furloughs that temporary leaves without pay, pay cuts, layoffs and the suspension of retirement contributions, when developing the plan. For example, Conrad said that in order to cover the deficit through pay cuts, the University would have needed to cut the salaries of faculty and staff earning over $50,000 annually by almost 12 percent.
Viewing Comments 1 - 4 of 5
Bernadette Brooten
posted 5/19/09 @ 10:39 PM EST
The Justice quotes me incorrectly. As I stated to a Justice reporter as I left the faculty meeting, I believe that this move is necessary, owing to the dire financial circumstances of the University. (Continued…)
Fire Jehuda
posted 5/24/09 @ 7:18 PM EST
I bet Jehuda isn't losing any money from his pension. It's time for the Trustees to fire Jehuda Reinharz and to find an individual who actually cares about the students and faculty. (Continued…)
Dev Singer
posted 5/28/09 @ 10:46 AM EST
While I have never taken an economics class nor do I have any particular understanding of the way retirement funds work, I have to express a large amount of shock at the poster above me who wrote "Fire Jehuda. (Continued…)
Morna Lyles
posted 7/09/09 @ 11:39 AM EST
Peter French, Chief Operating Officer for Brandeis (and coincidentally now retiring) is responsible for the entire mess. Jehuda is Peter's little boy and when Peter says go raise me more money for my dorm project, my science center project, and my mismanaged IT staff -- Jehuda goes and kisses Shapiro backside. (Continued…)
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