Benefit Cuts Take Faculty by Surprise

LAST NOVEMBER FACULTY and staff loudly decried an administration proposal that calls for reductions in Dartmouth employees' retiree health benefits. Now the College committee on faculty (COF) expects to draw up an alternative plan it hopes-will be "less onerous," according to COF chair Peter Winkler, a math professor.

The initial proposal would eliminate all College contributions toward the premiums of retiring employees hired after January 1, 2009, and increase the cost of insurance for current and future retirees. A common complaint voiced at several open meetings held to roll out the administration's proposal came from long-time staffers who claim they've held onto their Dartmouth jobs because of the retirement health care package, even though they could have made more money working elsewhere. They're not happy the rules are changing after they've spent decades working for Dartmouth. In addition, low-wage earners near retirement have little time to adjust their finances to cope with the changes.

Hoping to save money,trustees mandated a look atinsurance costs in 2003, anda health insurance workinggroup came up with the new plan. The Colleges existing retiree health plan costs $3.3 million annually, and the College projects an "accumulated post-retirement obligation," or total liability on the College's books, of $223 million.

Any change in retirement benefits isn't likely to impact faculty recruitment because many colleges, including Brown and Penn, are taking similar steps. Winkler notes that young recruits rarely consider retirement benefits when deciding where to work. On the other hand, Dartmouth "would stand out in a positive way by maintaining the benefit," he says. According to The WashingtonPost only about one-third of private sector retirees receive health insurance, down 50 percent from 1988. Within a decade that number is expected to drop to 16 percent.

Winkler hopes to submit a revised plan to the administration by mid-winter.