Strategic Communications and Marketing News Bureau

Senators discuss pension pinch, await potential fixes

A new state law that affects university employee pensions was the center of discussion at the Dec. 9 meeting of the Urbana Academic Senate.

Barbara Wilson, the executive vice provost for faculty and academic affairs, speaking for Chancellor Phyllis M. Wise, who was traveling, said leaders were disappointed with the law.

To address the shortcomings of the law, administrators are developing “ideas and options” that would supplement employee plans and still fit within the university’s financial parameters, she said.

For now, simply understanding the implications of the massive new pension law is a challenge, Wilson said. It is more than 300 pages long and contains complexities that can lead to multiple interpretations.

Until details are clear, “Sit tight and don’t make any decisions on your pension situation,” she said.

In an email to employees Dec. 8, Wise and Ilesanmi Adesida, the provost and vice chancellor for academic affairs, said pension plan changes won’t go into effect until the end of the fiscal year and that the State Universities Retirement System would likely soon release clarifying information.

“Until then, we are working to understand the full implications of these changes and to develop solutions to alleviate them,” the email said. “We will share with you, at the earliest possible moment, what we know and what we propose to do.”

Senate Executive Committee chair Roy Campbell said the vote on pension changes showed that the “business as usual” backroom dealing often associated with Illinois state government is alive and well.

“It raises all sorts of questions about how state government operates,” he said, noting it would be nearly impossible for legislators who voted on the measure to have actually read and comprehended it. All of the area’s legislators voted against the pension law.

Campbell said the work of administrators on behalf of university employees has been appreciated and he is confident leaders will deliver a supplemental plan that keeps the university competitive in attracting quality job candidates.

“The administration is fully aware of our concerns and they share our concerns,” he said. “(Finding a solution) is in all of our interests.”

He said overdue payments, dwindling direct support, cost-shifting to the university and prohibitive rules and regulations are what the university has received from state government in recent years.

Campbell said that state regulations on procurement may be the best example of the ill-fitting relationship, as state rules meant to increase accountability have led to difficulties for researchers and others who need to move quickly on needed purchases.

He said it would be a “huge burden” for the university to cover a greater proportion of pension costs, but he thinks leaders will find viable options to improve the system.

“There are moves afoot to find solutions to some of these thornier problems,” he said. “This is the U. of I. – we’re going to rise to that challenge.”

Campbell recently appointed a senate committee to study faculty compensation, which will be led by Jeffrey R. Brown, a professor of finance. The committee was recommended by the SEC’s summer Task Force on Faculty Issues and Concerns.

The committee will review salaries across campus, as well as the university benefits package, and compare them to peer institutions. Campbell has asked the committee to be mindful of compression issues for associate professors and gender differences for all ranks. Salary compression occurs when new recruits are lured to the university by a market-driven salary plan that may eclipse the existing campus pay scale.

“The goal is to ensure a very fair playing field throughout the university,” Campbell said.

He said having a competitive salary and benefits package is key to attracting and keeping high-level faculty members and staff members.

“It needs a much deeper analysis and further study,” he said.

Other business

  • Wilson said the Provost’s Office is formulating a Provost Communication on specialized faculty members, specifically addressing non-tenure track academic employees.

    The initiative arose from recommendations made earlier by a senate task force led by senator Harry Hilton, a senior research scientist for the National Center for Supercomputing Applications. The new communication will better define job titles, offer a list of best practices related to hiring specialized faculty members, and provide promotional tracks for certain job categories.

    “We can do better, we know we can,” Wilson said. “Illinois can be a leader in this.”

    Final recommendations will first be presented to the Council of Deans and then to the SEC for review.

     

  • Wilson said there is a search underway to hire a specialist in academic human resources to help with the dual career academic couples program. The campus has authorized the hiring of 180 faculty members this year, with a long-term goal of filling 500 faculty positions over the next 5-7 years.

    She said the specialist will help departments find employment for partners of faculty recruits. She said the specialist will need to be familiar with on-campus opportunities and also will network with community leaders to find employment opportunities outside the university.

  • Senators offered support of the 2013 IT Strategic Plan, which calls for infrastructure and classroom improvements to keep up with quickly changing technology.

    The plan was put together by faculty-led committees that have met over the last two years.

    Paul Hixson, the chief information officer, told senators the plan would allow the university to retain its technological competitive advantage, enhance the learning environment, improve public engagement and streamline university processes.

    For the plan to be fully implemented, Hixson’s office is recommending a one-time investment of $2 million and an annual budget increase of nearly $7 million.

    “This is not about information technology,” he said. “It is about the academic mission of this university.”

    Much of the money would be used to keep up with the growing demand for wireless connections and to increase classroom video-production capabilities.

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