Archived post

This is an archived post. Please click here to see the latest entries.

« Minor Sheehy Controversy | Home | We Need a Real Board of Trustees, Not the Upper Valley PTA (Part 3/5) »


Folt Folds on Retiree Health Benefit

What a fumble. Provost Folt has reinstated the death benefit for current retirees and those who retire between now and December 31, 2010. This decision means that the College will save almost no money over the next decade or two, and it has incurred the cost of a public relations fiasco — the result of making decisions by fiat, rather than consulting with various parties and finding a sensible justification for such a cost-cutting move (like the fact that no other local institutions have a similar benefit).

More importantly, the message has been sent out that if aggrieved parties yell loudly enough, then Dartmouth will back down. We can expect more fun and games in the future.

Note: The SEIU just raised their members’ monthly dues by 25%; they are getting ready to push back, too.

Update on retiree death benefit

Dear colleagues:

We are writing to let you know that the College has decided to modify its decision on the retiree death benefit.

Last winter, when we were intensely reviewing all possible options to reduce the budget gap, everything was on the table. We needed to find ways not only to address immediate projected losses, but also to correct the longer-term issue of our expenses continuing to exceed our revenues by $100 million and more annually.

Good work by our colleagues throughout the College has positioned us to close the gap for the current fiscal year (2011). For fiscal 2012 and beyond, we have addressed 80 percent of the shortfall. Work to close the remaining gap continues.

Part of the Strategic Budget Reduction and Investment (SBRI) process has been to examine and adjust Dartmouth’s benefits program. It was the intention that all employees and retirees collectively share in the changes necessary to return Dartmouth to sound financial footing.

Regarding retirees, we made the judgment that eliminating the one-time death benefit, which provides $5,000 to the beneficiaries of a retired employee upon his or her death and costs the College $150,000 to $200,000 annually, was preferable to changes in other areas, particularly health care. Dartmouth subsidizes the Dartmouth College Medicare Supplement (DCMS) health insurance premium for many of our retirees at, or nearly at, 100 percent. Additionally, our research showed that we were the only institution among our peers to offer this type of cash death benefit to retirees.

It has since become clear how important this one-time $5,000 payment is to the planning and decision-making of many retirees and their families. We have reconsidered the decision and will be reinstating this benefit to current retirees and those who retire between now and December 31, 2010. As of January 1, 2011, the $5,000 benefit will end and will not be available to individuals retiring on or after that date.

We are pursuing other means to achieve the necessary annual savings as part of the ongoing budget effort. We will continue to review opportunities for savings across the institution, including the cost of benefits.

As always, we encourage current employees to take advantage of life insurance benefits and to take the option of continuing these after leaving Dartmouth.

We appreciate the sincerity of all those who have been in touch with us regarding this very personal issue.

Best regards,

Carol Folt, provost, and Steven Kadish, executive vice president and chief financial officer

Featured posts

  • August 14, 2013
    Breaking: Of Crips and Bloods and Memories of Ghetto Parties
    History repeats itself, first as tragedy and then as farce, or sometimes it just repeats itself. From the New York Times on November 30, 1998: At Dartmouth College, white students at a ”ghetto party” dressed…
  • June 25, 2013
    Dean of the College Charlotte Johnson’s War on Students Part (2/2)
    Today’s post again recounts the events that befell the Freshman. However, the content of the Hanover Police department report reproduced in this space yesterday is supplemented by information from my own interviews, a review of…
  • October 18, 2009
    When Love Beckoned in 52nd Street
    We were at San Francisco’s BIX last evening, enjoying prosecco, cheese, and a bit of music. A full year of inhabitation in Northern California has unraveled to me no decent venue for proper lounging, but…
  • October 9, 2009
    D Afraid of a Little Competish
    So our colleague and Dartblog writer Joe Asch informed me that the D has rejected our cunning advertising campaign. Uh-oh. The Dartmouth is widely known as a breeding ground for instant New York Times successes,…
  • September 4, 2009
    How Regents Should Reign
    As Dartmouth alumni proceed through the legal hoops necessary to defuse a Board-packing plan—which put in unhappy desuetude an historic 1891 Agreement between alumni and the College guaranteeing a half-democratically-elected Board of Trustees—it strikes one…
  • August 29, 2009
    Election Reform Study Committee
    If you are an alum of the College on the Hill, you may have received a number of e-mails of late beseeching your input for a new arm of the College’s Alumni Control Apparatus called…

Dartblog Specials

Subscribe by Email

Enter your email address:

Help, Pecuniarily

Please note

This website reflects the personal opinions of its authors. Any e-mails received may be published along with the full name of the sender. If you wish otherwise, please say so.

All content appearing at Dartblog.com should be presumed copyright 2004-2014 its respective bylined author unless otherwise noted or unless linked to original source.

Advertisement

admin

Calendar

June 2012
Sun Mon Tue Wed Thu Fri Sat
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Search

Archives

Links