BENTONVILLE — A retirement bonus approved Monday for longtime employees could save money long term at NorthWest Arkansas Community College.
The board of trustees approved a $10,000 retirement incentive for eligible full-time faculty and staff Monday night. The offer is a repeat of last year’s early retirement, but the February announcement is earlier than last year, said Debi Buckley, senior vice president for administration services and chief financial officer.
AT A GLANCE
NWACC Board Meeting
In other business, the board of trustees:
A purchase of railroad land approved by the board in January is pending, but has not been finalized.
Trustees approved a resolution formally recognizing the NorthWest Arkansas Community College Foundation as the recipient of all donations to the college.
Trustees approved a resolution formally recognizing the president as designee to sign business documents.
Correction: A previous version of this story incorrectly identified the foundation.
Source: Staff Report
Nine people retired under the offer last year and the college saved about $102,000. Savings came from both hiring new people at a base salary or by not filling positions of those who retired. At least two of those positions were not filled, Buckley said.
There are 94 people eligible for early retirement, which is open to full-time faculty and staff who are 55 years old or older with more than five years of service as of Jan. 1 of this year. To get the $10,000 incentive they must plan to retire before June 30.
The college’s financial year runs from July through June and incentives would come out of the current fiscal year. A position that has been eliminated or filled with a person who starts on the lower end of the pay scale represents a long-term savings, Buckley said.
Scott Grigsby, trustee, said during the finance committee report the savings should be higher this year and more people are likely to take advantage of the offer.
“We’re anticipating $200,000 to $300,000 this year,” Grigsby said.
“We’re doing it early so people have more time to think about it and plan,” said Evelyn Jorgenson, college president.
Ric Clifford, board chairman, said it is important to look at cost-saving measures and the idea represents a win-win for the college and its staff.
“With the enrollment being where it is, there’s a lot of focus on the budget,” Clifford said.
Unofficial enrollment numbers for spring showed 7,546 students, a 6.1 percent drop in the number of students over last spring, Jorgenson said.
Departments are being asked to prepare for a 5 percent to 6 percent cut from their budget next year, based on enrollment estimates for fall, Jorgenson said after the meeting. The college will continue to market and recruit students, but also is focusing on retaining the ones they have, she said.
“We worry a lot more about the students than we do about the percentage,” she said.