New early retirement plan offered

Some IU employees will get a one-shot chance at an improved retirement deal, thanks to a change in an Indiana statute.\nEligible employees covered by the Public Employees Retirement Fund (PERF) can receive one additional year of credit toward the pension portion of their retirement benefits for every five years enrolled in the program, said Dan Rives, associate vice president for human resource services.\nEnrollment in the plan provides an additional 20 percent to a retiree's monthly pension, according to the Indiana University Human Resources Web site, www.indiana.edu/~uhrs/.\nOver 300 employees have already requested an estimate of what this incentive might produce, Rives said.\n"This is something we believe is very positive because it has a significant improvement in the pension benefit," Rives said. "We're very pleased to make this an opportunity for the long-term employees."\nEmployees 55 years or older with 15 years of PERF coverage must retire before June 30, 2004, to qualify for the incentive.\nThere are 766 IU employees statewide who meet this basic criteria, Rives said.\nIU spokesperson Jane Jankowski said the plan isn't meant to force anyone into retirement. \n"There's certainly no pressure to (retire)," she said. "It's simply another opportunity."\nThe State of Indiana's successful PERF incentive last year made it possible for IU employees to get the same deal.\n"Prior to last year, only the participant could purchase extra credit under very specific circumstances," he said. "We've elected to use the state law to purchase additional service credit for certain employees."\nThe incentive applies to IU's non-exempt staff, which includes primarily support, technical, service maintenance and food service employees, Rives said. The incentive will not affect professors and administrative employees, who fall under an entirely different retirement plan.\nRives said the financial impact on the University is difficult to predict but will likely be minimal, as departments should replace retired employees.\n"[IU] was not contemplating any specific reductions in labor expenses," he said. "The University is doing it to provide assistance to long-term employees. We do not have other goals."\nOne-hour campus information sessions are available at 9 a.m., 11:45 a.m. and 3 p.m. in the Dogwood room of the Indiana Memorial Union on Jan. 20.\n-- Contact staff reporter Mike McElroy at mmcelroy@indiana.edu.