MCC Daily Tribune
President's Wednesday Message
At its August meeting,the MCC Board of Trustees authorized the College to offer a Voluntary Separation Incentive Plan ("VSIP") to eligible employees within the Faculty Association. One of the core responsibilities of our Trustees is assuring MCC's fiscal stability. It is in this governance role that the Trustees authorized the VSIP. The College's own financial reporting and the report requested by the Trustees from The Bonadio Group all point to the same conclusion: the financial future of MCC is dependent on our ability to align the number of teaching faculty and non-teaching professionals with the College's enrollment, and to bring expenditures in line with resources. We can no longer depend on fund balance to cover the gap between revenue and expenditures.
The VSIP, then, supports three goals related to College fiscal responsibility and stewardship:
- to align the number of full-time faculty positions more closely with the negotiated, enrollment-based index number in the Faculty Association contract;
- to align the number of non-teaching professional staff positions to current student enrollment; and
- to help achieve the Board of Trustees' stated fiscal goal of reducing the use of fund balance to $0 in fiscal year 2021.
Because of limitations on available resources, another voluntary separation incentive opportunity is not planned for the foreseeable future.
Eligibility to apply for participation in the VSIP is based on a number of criteria. All full-time, non-temporary, non-grant teaching faculty and all full-time, non-temporary, non-grant, non-teaching professionals who are eligible to join the Faculty Association and whose age and qualifying years of continuous full-time service when added together equal 75 or more on the date of their separation are eligible to apply for participation in the program. Some examples:
- An MCC employee eligible to join the Faculty Association who has taught full-time in a non-grant, non-temporary position for 25 years and is 52 years old has a point total of 77 and is eligible to apply for the VSIP.
- An MCC employee eligible to join the Faculty Association who worked part-time for 3 years; has served as a full-time, non-grant, non-temporary coordinator for 15; and is 57 years old has a point total of 72 and would not be eligible to apply for the VSIP.
Employees who are eligible to apply for the VSIP will be notified and will receive a full copy of the Voluntary Separation Incentive Plan document for their review and action via email by the end of the day today.
Individuals do not have to be of retirement age to participate in this VSIP.
The VSIP supports the College's commitment to our employees who have served our students for decades and dedicated their talents to MCC. It provides eligible employees with an additional financial benefit upon their retirement: a separation incentive equal to 2% of their annual base salary per year of service plus 25% of the value of their accrued, unused sick leave as of their separation from service. In addition, VSIP participants with at least 15 years of continuous full-time service with the College will be eligible to participate in the College's group health insurance plan from the time of their separation date.
Participation by employees in the VSIP is entirely voluntary, and eligible individuals must apply to participate, receive approval to participate, and sign a Separation Agreement to receive a benefit under the plan. The Board of Trustees has authorized MCC to expend up to $4 million on the VSIP, and participation is limited by this cap. Applications will be date/time stamped, and this date/time stamp will be used to establish a cut-off point once the $4 million threshold is reached. The application period will open on Monday, September 16 at 8:45 a.m. and close on Monday, November 4 at 4:45 p.m. Eligible employees who apply for the VSIP will be notified on or about Tuesday, November 12, 2019 whether their application has been approved or declined.
If you have any questions, please contact Human Resources or review information posted on the Banner channel called "Voluntary Separation Incentive Plan." The Banner channel will be available on Thursday, September 12. In addition, please make time to attend one or more of the workshops that will be scheduled throughout the application period.
Please share your thoughts on the blog.
Anne Kress
Office of the President
09/11/2019