ERP Options Presentation

Economic Response Program (ERP) Options

http://www.unimelb.edu.au/erp/

Overview

Following a consultation process, the Vice-Chancellor announced

that the University will proceed with a modified Economic

Response Program (ERP) with effect from 7 September 2009.

The options have been designed to work in conjunction with each

other to manage the required cost reductions responsibly &

strategically while treating staff fairly, respectfully and with dignity

2Economic Response Program

ERP Options

The 3 options which are currently in operation (from 7 September):

1. A Voluntary Redundancy Program (VRP)

2. Enhanced Early Retirement Options

3. A Freeze on the Hiring of External Professional Staff

Other options consulted on:

1. The flexible leave & working arrangements received strong staff

support and will be implemented later in the year.

2. Tightening the renewal process for fixed-term contracts is subject

to further consultation with the NTEU and staff.

Voluntary Redundancy Program (VRP)

• Limited number of voluntary redundancy packages • Proposed Eligibility Conditions:

– All confirmed, continuing professional staff;

– All confirmed, continuing academic staff, with preference given to staff in priority Faculties (MHDS, FEC, MSLE, VCAM, MSE);

– Not otherwise have received redundancy benefit in previous two (2) years;

– Not have a pre-existing retirement or other cessation agreement;

– Casual and fixed term staff ineligible;

– Senior executives and those otherwise employed on a performance based contract ineligible.

• Terms:– Agree to cease on or prior to 31 December 2009

– No re-employment by University for two years (with exception of sessional employment for academic staff)


• Application process

• Primary criteria for acceptance: that the position is excess to

requirements & will not be replaced

• Number of subsidiary criteria

• University may refuse application on operational grounds

• Where selection between applicants is necessary, this would be

measured by:

– The relative impact on the effective and efficient functioning of the

work area; and,

– The extent to which each staff member holds significant critical

University knowledge or critical skills & competencies


• Benefits include:– Professional staff: up to 52 weeks salary, with choice of calculation

method as preferred by the staff member being either:• A length of service-based calculation method of 3 weeks per year of

service capped at 52 weeks; or• An age-based calculation method, being a sliding scale starting at 6

months for staff aged less than 40 years and increasing to up to 12 months salary for staff aged over 45 years.

– Academic staff: up to 82 weeks salary (including 8 weeks transition payment)

– $10,000 incentive payment

– Individual career transition support provided by Lee Hecht Harrison

– Accrued annual & long service leave paid out


VRP Sample Benefit Quotation(Please note that this is an estimate only and may vary on any final payment)


VRP Taxation Estimate Calculator

Voluntary Redundancy Program (VRP) Timelines

VRP Critical Dates:

• 7 September VRP Applications Open

• 9 October VRP Applications Close

• 9 November All applicants will be advised of

outcomes

• 31 December 2009 Final date for departure under VRP

Enhanced Early Retirement Options

• Choice of three Retirement options available under the University’s

current policies:

– Early Retirement - applicable when staff member wishes to retire in the

short term (eg less than 6 month timeframe) with a lump-sum payment of

60% of gross annual salary (NB: No tax free component)

– Pre-retirement contract – applicable for longer term period (of no more than

3 years) with an annual loading of 20% of gross annual salary (paid

fortnightly with normal salary and taxed at marginal rate)

– Phased Retirement, where staff member reduces time fraction prior to

agreed retirement date (no more than 3 years) and the University maintains

superannuation contributions at full-time rate.

Enhanced Early Retirement Options

• ERP Early Retirement enhancements:

– Additional $10,000 incentive payment is payable to any staff member who

agrees in writing to a retirement plan (early retirement, pre-retirement

contract or phased retirement) prior to 31 December 2009 and with an

agreed retirement date on or before 30 June 2011.

– Subject to signing a Deed of Release

• Eligibility– Academic and professional staff members employed in continuing

positions who have been confirmed. – Staff with a pre-existing

retirement or other cessation agreement are ineligible for participation.

Freeze on Hiring of External Professional Staff

• Prohibition on external recruitment of professional staff

• Period of operation: 7 September 2009 – 31 July 2010

• Vacant professional staff positions advertised internally only

• Current continuing & fixed-term staff eligible to apply – external

applicants not considered

• Three month period of grace provided to staff who were previously

employed on fixed term contracts which have ended

• Stronger use of placement & redeployment

• Exemptions in exceptional cases subject to approval of a Hiring Freeze

Standing Committee

Decision-making Support for Staff

• The University has partnered with a market-leading career transition provider, Lee Hecht Harrison, in providing a range of sessions to assist staff with making fully informed decisions throughout this period. Sessions include:

– Financial Planning Information Session

– Career Decision Seminars

– Resume Writing and Interview Skills

– What’s Next? Exploring the rest of your life

• Lee Hecht Harrison have also established a Staff Career Centre on Level 4 of the Babel Building and there is some availability to meet one-on-one with staff.

Decision-making Support for Staff

• Unisuper will also provide support to staff throughout this process and will present a “Super on Retirement” seminar at 12.30 pm on 22 September 2009 in the Medley Theatre.

• Individual consultation appointments with Unisuper can be arranged by the University’s superannuation team:

– David Citroen – Ph: 8344 6150/Email:[email protected]

– Damien Zanic – Ph: 8344 6075/Email:[email protected]

• Staff who are covered by an alternative superannuation provider should contact their superannuation entity directly to arrange a consultation.

Further Information

• Full details of the ERP options are available at:

http://www.unimelb.edu.au/erp/

• The ERP website includes:– Fact Sheets– Frequently Asked Questions– Full details and booking details for Lee Hecht Harrison and Unisuper

seminars and sessions– Confidential on-line VRP benefit and taxation estimate calculators– Application Forms for VRP and Early Retirement

• Queries can be directed to [email protected]

ERP Options Presentation

Documents

Transcript of ERP Options Presentation