At SPSU we've learned that a substantial cut is planned in the state
contribution to the optional retirement plans (not TRS). This only
affects those that are not in the TRS retirement system (i.e.
those in American Century, Fidelity, TIAA-CREF and VALIC). That
includes a great many faculty. For example, over 50% of SPSU's faculty
are in one of these optional retirement plans.
Last year those in the optional plans contributed 5% of their salary,
while the state contributed 9.66% . The planned change leaves the 5%
unchanged, but reduces the 9.66% to a state contribution of 8.13%. On a
$60,000 salary this is an annual cut of $918 (even before including the
tax sheltered aspects of the contribution). Incidentally, the state
contribution for those in TRS is planned to increase from 9.24% to 9.28%
. I should mention, in the interests of full disclosure, that I'm in
one of the optional plans.
Our president has provided me with all of the documents relating to this
change that she has. In my opinion they provide no justification or
explanation. It also seems that the decision was made by the TRS Board
of Trustees with little discussion or input from those affected, and
addressed only to the chief financial officers on each USG campus (not
Academic Affairs or the Presidents). While the cut is obviously of
concern to those in the optional retirement plans, I believe the way in
which it is being done should concern all faculty.
Our Faculty Senate is working on sending the following resolution to the
Chancellor today. Use it as you see fit. Note that, if your faculty is
considering action, time is of the essence.
The Faculty Senate of Southern Polytechnic State University wishes to
express its deep and serious concern over the recently announced cuts in
the state contribution to the University System of Georgia Optional
Retirement Plans.
1) Communication with, involvement of, and consultation with those most
affected before the decision was made appears to have been
non-existent.
2) The notice provided of the cuts was limited at best. Some of our new
faculty this term committed to an optional retirement plan, only to be
told shortly thereafter that the state’s contribution was to be cut.
3) No explanation of the rationale for the cuts has been provided.
4) For the many faculty that have made the choice, their ORP is not
optional. It is their retirement plan. This cut is a real reduction in
their compensation, and they are suffering it purely because they chose
an ORP instead of TRS. It’s a point of particular concern that the state
contribution to TRS is being increased as ORP is being decreased, and
these adjustments will place the ORP state contribution rate at 8.13%,
compared to 9.28% for TRS.
We hope that it is not too late to revisit this decision. If allowed to
stand, inequities between TRS and ORP will jeopardize the function the
ORP’s were designed for: to recruit and retain highly qualified faculty.
Dr. Joel Fowler
Associate Professor, Mathematics Department
Southern Polytechnic State University
(678)915-7414, jfowler@spsu.edu