The University of Wisconsin is changing a faculty personnel policy after attracting criticism for allowing some employees to draw on both retirement benefits and regular salary simultaneously.
Darrell Bazzell, UW’s vice chancellor for administration, said the practice of drawing on a pension and salary from the state was only commonly used under extraneous circumstances at the university. Critics of the practice from around the state have dubbed the policy “double dipping.”
“There are a whole range of circumstances under which employees [can collect both their salaries and benefits at the same time],” he said. “Especially when faculty members no longer want to be involved with the full range of faculty responsibilities, such as service or teaching.”
He said the practice allows faculty members to resign from UW and then come back under a more limited role.
Bazzell cited the example of a professor holding a research grant with three years left as an individual who would want to return to the university in a more limited capacity.
However, as a result of recent attention drawn to the practice, UW issued a new policy to tackle the issue of “double-dipping”.
While the new university policy does not prohibit the practice, Bazzell said it would serve to clarify and outline the typical conditions expected by UW officials.
The new policy serves as a replacement for a similar set of guidelines issued in 1993 that, according to Bazzell, “didn’t do much of anything.”
According to the new policy on post-retirement employment, which went into effect on Oct. 5, “the hiring of a retired university employee is permitted only in specific circumstances,” and the dean or director of the university entity must approve all appointments in advance.
Bazzell said another major tenet of the new policy rules employment extending for more than one year requires the approval of the vice chancellor for administration and that under the proper circumstances, it would be “perfectly acceptable” for a faculty member to return to campus.
Vince Sweeney, vice chancellor for university relations, said the policy change provides a more explicit set of guidelines in these unique personnel situations.
“The new policy developed [at UW] provides us with a clearer policy for us moving forward,” Sweeney said. “As we begin to implement some of the flexibilities that were outlined in the state budget bill for [the university], including a new personnel system, we felt that a clearer policy on rehired annuitants was warranted.”
The university currently employs approximately 450 employees as rehired annuitants who are not required to be faculty members, Sweeney said.
He added the policy would be a tool used by the university to address the unique personnel needs of these employees.
UW is not the only institution to practice this system, Sweeney said. Several other state agencies employ similar policies for drawing from pensions while continuing to collect a salary from the state.
Sweeney said this decision is driven by the employer based on an institution’s personnel needs.
Both Sweeney and Bazzell expressed their dissatisfaction at the usage of the term “double-dipping”.
“These people are people who have come back to work for the university,” Bazzell said. “Using that term, ‘double dipping’, people might think that it’s somewhat charged.”
Sweeney said Wisconsin state law allows employees who retire to be rehired after 30 days and still receive a salary, as well as a pension but excluding other benefits, such as health insurance.