Carleton University will incentivize staff and faculty retirement in an effort to address its financial deficit, according to a Nov. 20 statement.
The Voluntary Retirement Incentive Program (VRIP) will provide a lump-sum payment to help eligible employees “transition to retirement.” The program is one of several attempts by the university to address its growing financial deficit.
On Nov. 8, the university said it will implement cost containment and revenue growth strategies to address its financial challenges. Other than the VRIP, the university has not yet released any details about further plans.
In a Nov. 21 statement emailed to the Charlatan, university media relations officer Steven Reid said “significant measures” are required to address the university’s annual deficits in the short and medium term while the university plans for long-term financial sustainability.
The VRIP program is a “proactive measure” and cost containment strategy, according to the email.
“Participation in the program is entirely voluntary and employees can consider this option in alignment with their personal and professional goals,” the email reads.
The incentive program is a “limited, one-time offer,” according to the university’s Nov. 20 statement, released on its website and emailed to employees.
“As this opportunity is not a recurring program, it’s important for eligible individuals to consider participating in the program while it is available,” the statement reads.
The program’s application period is open from Nov. 20, 2024 to Jan. 31, 2025. Approved applicants will be notified by the end of February 2025.
Eligible employees who wish to receive the retirement incentive are required to apply for the program, and are not guaranteed to be accepted.
To be eligible for the program, full-time professional staff and faculty must be 55 years old or older. Additionally, their combined age and number of working years at Carleton must total 75 or more.
Employees who gave their retirement notice prior to November 2025 are not eligible for the program.
In exchange for retiring, accepted employees will receive a lump-sum payment equal to one month of their regular pay for each completed year of employment. Employees can receive a maximum of 12 months of salary through the program.
For example, an employee who worked eight years and made an annual salary of $100,000 would receive a lump-sum payment of eight months of salary, equal to $66,664.
Participants’ existing pensions and retirement entitlements will not be affected by the program, according to the VRIP website.
The Carleton University Academic Staff Association, a union representing full-time faculty and professional librarians at Carleton, released a short statement about the VRIP in its Nov. 20 newsletter.
“This new retirement program was undertaken without consultation with [the association],” the statement reads. “We are researching what the program will mean for our members and the larger Carleton community, and you will be hearing from us soon.”
Applications will be reviewed and approved “based on the university’s teaching, research and operational needs,” according to the website.
The positions of employees who retire through the program will not automatically be filled.
“The program is designed to offer eligible employees the opportunity to retire with financial incentives, and the university is not committed to filling all vacated roles,” the website reads. The university said workforce needs will be “adjusted as necessary” to ensure efficient university operations.
“Students can be confident that the university has taken all measures to ensure that their studies continue as planned,” reads the university statement emailed to the Charlatan.
Eligible employees will receive a notice email and application instructions from the university’s human resources department on Nov. 21, according to the website.
“We recognize that retirement is a significant decision,” the Nov. 20 statement reads. “We want to provide you with the necessary information to facilitate an informed choice.”
The university will host information sessions for employees interested in the VRIP on Dec. 11, 2024 and Jan. 15, 2025. It will also have the Retirement Planning Institute host workshops in December and January.
Featured graphic by Sara Mizannojehdehi.
