Voluntary early retirement incentive programs for Northwest College faculty and staff are among the strategies being considered to help reduce the college’s expenses by $2 million. 

That’s the amount of the expected shortfall for the 2016-17 school year, according to local and state revenue projections.

If the early retirement incentive programs are approved by the NWC Board of Trustees, any voluntary retirements would reduce the number of layoffs, or reduction in force, that might be needed for the next school next year, said NWC President Stefani Hicswa.

The proposals were on the agenda for the Northwest College Board of Trustees’ monthly meeting Monday evening.

According to program summaries provided to trustees, The Faculty Early Retirement Incentive Program Special Offering aims at maintaining faculty morale while offering early retirement for faculty members who otherwise might not be eligible.

Funding for the program will be provided through non-restricted college reserve funds.

Eligible faculty include all full-time Northwest College ranked faculty who have 10 or more years of continuous full-time NWC faculty service and have reached the maximum number of “steps” available in their degree category on the faculty salary schedule.

Under the Staff Voluntary Early Retirement Program Special Offering, other NWC employees would be eligible if they have worked for Northwest College for 10 or more consecutive years at the time of their retirement.

There is no age requirement for either special retirement offer.

Acceptance of applications would be subject to budgetary needs, cash fund reserve availability and board approval.

If the number of eligible applications submitted exceeded the total needed, applications would be ranked by the date of hire at Northwest.

Faculty or staff approved for early retirement would receive a payout equal to 115 percent of their base salary for fiscal year 2016, either as a lump sum or in 12 monthly installments.

The college would not pay for benefits under the program, but would withhold taxes.

Employees who are in grant-funded positions, on layoff status or receiving or eligible for disability benefits are not eligible for the early retirement program.

The program summary also states that “applicants who possess recognized experience and/or educational background which would unduly limit or impact the course, program offerings and/or significant campus operations may not be approved for early retirement by the Board of Trustees. The Board of Trustees cannot guarantee all acceptance of all applications.”

Applications for early retirement would be due by April 22. Applicants could choose to retire either on June 30 or Dec. 31.

The board would take action on the applications at its May 9 meeting.

Under the proposal, applicants approved for early retirement could not be re-employed in a benefited position at the college without approval of the NWC president.

A review of the college’s policy regarding reduction in force also was on the board’s agenda, but not as an action item. According to college policy, the board would have to declare it necessary before a reduction in force could happen.