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Benefits April 13, 2010
Dartmouth Contemplates Retirement Contribution Reductions
April 13, 2010 (PLANSPONSOR.com) - Dartmouth College employees may soon receive cuts to their health and retirement benefit plans as part of an effort to reduce the college budget.
Reported by Rebecca Moore
The Dartmouth reports that faculty committee chairs announced Monday at the Faculty of Arts and Sciences meeting a proposal to reduce its retirement contributions for employees over 40 years old from 10% to 9% of base salary, and for employees ages 35-39, from 10% to 7% of employees’ base salary. Reductions in health and retirement plans comprise part of $13 million in benefits and compensation that officials are seeking to eliminate from the budget.
Professor of environmental studies and committee chair Richard Howarth said currently, the College places more emphasis on employee benefits than other Ivy League institutions, adding that benefits compose 29% of faculty base salary at the College, compared to an average of 25% for faculty over the rest of the Ivy League, according to the news report.
The College is also considering implementing higher co-payments and deductibles in its health coverage, with higher-paid employees responsible for larger insurance payments. It will also consider reducing the amount it pays for employee-only coverage.