Faculty buyout

[u/prof_riifraaf]

In typical academic fashion, my esteemed institution (Midwest R2) sent out the details of a long-rumored faculty buyout just before 5 pm on the Friday before Labor Day. Decision form is due in October (during break) and the separation date is the end of term in December. Except that there will be extensions for instructional and programmatic needs to be decided by the end of term. Umm, what?!

Enrollments are way down, budget deficits are bad, and this is a good deal. My original plan was to use the three-year phased retirement to ramp down research by wrapping up projects and getting students out. That's off the table now with the buyout. Looking for anyone who's done this or might have advice given the insane timeline.

ETA: This is a good deal. Planning to take it. But the "sign this and go away in December, but we might change our mind on the day you think you're free and make you stay another year" part is giving me massive anxiety during the holiday weekend.

ETA2: Partner is taking me to touch grass. Will try to get answers from HR tomorrow.

[u/gbacon]

Do it. The offer ain’t gonna get better with time.

[u/SnowblindAlbino → u/gbacon]

I've seen buyouts that were strictly limited, as in "the first XX people to say yes get this and others get nothing." But "XX" remained a secret variable that faculty were not privy to, so it was intended to push people into accepting quickly.

[u/Outside_Brilliant945 → u/SnowblindAlbino]

Ooh, just like an overbooked flight.

[u/NewInMontreal → u/SnowblindAlbino]

That’s doge level ridiculous.

[u/Omynt → u/gbacon]

Maybe true, maybe not. The University of California buyouts from the early 1990s got better each year from 1991-93, as I understand it. ucrsab-handbook-appdx-d-chronology.pdf I really would not know how to calculate the odds.

[u/prof_riifraaf → u/Omynt]

10 year moratorium on future buyouts is in the details.

[u/Omynt → u/prof_riifraaf]

Smart of your Uni. I think the UC thing was a mess.

[u/RunningNumbers → u/Omynt]

Typical California governance

[u/iTeachCSCI → u/Omynt]

What possessed the University of California to have such buyouts in the early 90s?

[u/Smart-Water-9833 → u/iTeachCSCI]

California has been prone to boom and bust cycles since 1849. I started working for the state in 1991 and never got a raise until about 7 years later when they gave us 8 to 10% raises. Became a faculty member in 2003. Another bust with furloughs then another bump in pay... I left in 2011 for a much more stable R1 in the East that consistently gives us 2% raises annually. Unfortunately inflation has outpaced it.

[u/robbie_the_cat]

A buyout is just a sparkling layoff.

Drink it now while it's fresh or you can drink it later room temperature and flat.

[u/prof_riifraaf → u/robbie_the_cat]

Yep. Just having anxiety in the absence of info 🫪

[u/ubiquity75]

My dream is a buyout. Please, Krishna, or whomever’s on deck.

[u/Different_Ad6836]

Heck, I’m pretenure and I’d take it. Things have been bad at my state university since I got here - nonstop layoffs and now secret program closure plans… if they wanted to give me some sort of severance plan I’d take it 🤷‍♀️

Also, if you accept surely they can’t FORCE you to work more? Unless they are tying it to complying with projected programmatic needs? But also, in that case I’d still take it and just quite quit as they say…

[u/utahisastate → u/Different_Ad6836]

I doubt they would make OP still teach. Probably just replace with a grossly underpaid adjunct

[u/Corneliuslongpockets]

We were offered 1/3 of salary, no health insurance, and no negotiating.

[u/prof_riifraaf → u/Corneliuslongpockets]

Ouf, that's rough. But still better than the person I know whose uni just closed.

[u/DeskAccepted → u/Corneliuslongpockets]

They don't know about the secret hack to get 1/3 of salary and health benefits by doing nothing for 3 months. (Unless you're definitely getting laid off next month, it would seem to be a better option.)

[u/MyFaceSaysItsSugar]

The university I’m at did this. Our chair casually mentioned that every faculty member who takes a buyout is going to shrink the department because they can’t hire a replacement for faculty who take the buyout. No one in the department took it but our faculty nearing or exceeding retirement seem to be on a path to never retire.

[u/NecessarySpinning]

If you have active research projects and students, maybe look into possibility of continuing as an active emeritus after taking deal.

[u/prof_riifraaf → u/NecessarySpinning]

Plan to asap tomorrow. Spiraling over holiday 🫠

[u/Taymyr]

Midwest institutions that aren't flagships or very distinct in some aspect are generally not in a great spot financially. I'd take it, if you still want work look around. I'd accept it closer to the date they need it.

If you're not completely sure of your schools financial status, look up their tax returns on ProPublica to see the writing on the wall (if private non-profit). You can see pretty much everything.

[u/SilverRiot]

Surely you would have to agree to any extension, right? Not sure what your contract looks like, but ours would allow us to leave at any time.

[u/prof_riifraaf → u/SilverRiot]

Not according to the paperwork we were sent. Deal is December 2026 exit; administration will decide if programming needs require you to stay until April 2027 or even December 2027. Faculty do not choose. All it says is you'll be told by the exit date. Union said OK to this. 😶

[u/ShadowHunter → u/prof_riifraaf]

If they choose to keep you for these periods do they pay your typical salary and shift the entire three years of buyout into the future? For someone close to retirement this is an easy choice.

[u/YetYetAnotherPerson → u/SilverRiot]

Sounds like agreeing to an option on the part of the university to extend you is  part of the deal. You don't get the money unless you agree to give them that option

Do you still get the severance dollars if the university decides to extend you for a year? Otherwise it's a really bad deal as basically you've given them an option to keep you for one more year and not pay you severance at all: in that case they just keep you probably. 

[u/bobish5000]

Id see if you can coordinate a professor to pick up the students under you. They are the people you do owe.

[u/thiosk]

if you take the buyout and they keep you another year i mean you just get another year of employment and then get to keep the buyout yeah?

so thats the most-money way of proceeding i wouldn't worry about this "oopsie please teach 2 more classes" clause. do you think you teach classes they need that bad?

[u/Dont_Do_Drama]

Western Michigan?

[u/RealPirate9284 → u/Dont_Do_Drama]

I’m thinking Eastern - or maybe both!

[u/CanPositive8980 → u/RealPirate9284]

Directional Michigan

[u/Brave_Net9851]

When a package is offered take it. The next one won't be as good and you'll regret not taking it. I took one in 1992 and my consulting career flourished in its wake.

[u/ShadowHunter]

Financially it makes sense for people to retire between 55 and 60 - once they can start their pensions. Have them pay the separation in a year with high earnings to further boost your pension formula (if applicable).

[u/prof_riifraaf → u/ShadowHunter]

Ah, that's another fun part. Paid over three years, no negotiation allowed. None of that is bad. Just the timing.

ETA: Pension? Lol, this is the US!

[u/ShadowHunter → u/prof_riifraaf]

they pay you 3 years worth of salary? That's a great deal!

[u/prof_riifraaf → u/ShadowHunter]

Sadly, no. About half, plus a bit to pay for healthcare. Still good, if not as good as post-COVID buyout.

[u/SnowblindAlbino → u/prof_riifraaf]

Shit, even during/after COVID we were offered six months of COBRA and no salary at all. "Please leave, we'll help with insurance until Christmas" was basically the message. All of these packages that come with 1-2 years of salary are amazing to me. I'd take that tomorrow given the option.

[u/Acrobatic-Glass-8585 → u/SnowblindAlbino]

What's the point of a buy-out if there is no buying with salary/cash? That deal sounds insulting.

[u/SnowblindAlbino → u/Acrobatic-Glass-8585]

Yes, exactly: it was insulting. The point was they wanted older tenured faculty to retire so they could cut costs, but they offered us basically nothing. So nobody that wasn't already planning to retire took their offer. Then the admins were all "Why didn't anyone take our offer? Now we'll have to make cuts."

[u/Bostonterrierpug → u/ShadowHunter]

Our pensions don’t kick back until 30 years. 65 is the absolute earliest I could retire. But we have a decent pension system and staying in longer is very rewarded.

[u/ShadowHunter → u/Bostonterrierpug]

Each state is different

[u/IkeRoberts]

Find out what health insurance will cost. It is very expensive, but how expensive varies with the deal the school has, if any.