Resolution US07/08-8 – Restoring employer contribution level for Oregon Retirement Plan (ORP) Tier 3 employees

 

 

Sponsored by:   Senator David Levin, mathematics

For Senate action:        November 28, 2007

 

 

In July of 2007 the employer contribution level for the members of the Optional Retirement Plan (ORP) Tier 3 dropped from 8.04% to 5.82%. By comparison, the employer contribution level for all other ORP members (Tiers 1 and 2) is 16.01% (down from 16.75%). Simply put, the faculty that joined the University of Oregon after August of 2003 receive less than 37% of the employer retirement contribution as those who were hired before this date. In view of this, the decision to significantly reduce (by more than 27%) the contribution for Tier 3 members is a cause for serious concern. As is clear from the numbers, this change has a disproportionate impact upon the Tier 3 employees, who already receive the least benefit. Moreover, in light of recent difficulties in recruitment and retention, this should worry all members of the university community, as all new hires will be classified as Tier 3. Therefore,

 

Be it resolved,

 

That the University Senate of the University of Oregon urges the university administration to work with the Oregon University System and the State Legislature to restore the benefits for Tier 3 employees to their previous level.