Jefferson approaches the end of the fiscal year with the recognition that
it has been one of the most challenging in our recent past. Despite lower
revenue due to the increase in managed care, reductions in both State and
Federal funding levels, and the pressures of an increasingly competitive
healthcare marketplace, Jefferson has made significant progress. The creation
of the Jefferson Health System and the Jefferson Faculty Foundation, increased
research funding, the Redesigning Jefferson for 2000 cost restructuring
project, and the soon-to-be completed University Strategic Plan, will position
Jefferson to continue its humanitarian mission of providing high quality
patient care, health-related education and research.
To recognize these achievements and to support our continuing efforts, the
University's Board of Trustees and the Jefferson Health System Board of
Trustees recently approved a number of significant items:
- To recognize the contributions that individuals have made during the
past year, it is expected that eligible individual employees will receive
a one-time bonus payment in lieu of an annual salary increase for FY l996-97.
These payments will be made sometime in the fall provided we continue to
make progress on our cost restructuring project. The bonus payments are
funded at 2 percent of base salaries and can vary up to 6 percent of an
employee's annual base salary.
- Longevity payments will be discontinued effective June 30, 1996. This
allows us to apply a cost savings of approximately $700,000 annually toward
the cost restructuring activity.
- To minimize the need for future layoffs, the Boards have authorized
both a Voluntary Early Retirement Incentive Program and a Voluntary Termination
Option Program, which became available in May. Most, but not all, Jefferson
employees will be eligible for these programs (see Human Resources below
for further details).
Eligible Jefferson employees and faculty will have the option from May 6
through June 28, 1996 to apply for either a Voluntary Early Retirement Program
(VERIP) or Voluntary Termination Option (VTO). Most employees choosing to
participate in either of these programs will terminate their employment
by June 30, 1996.
To be eligible to apply for the VERIP or VTO, you must be actively at work
and classified as a regular full-time or part-time (a minimum of 40 hours
per pay period on a regular basis) non-bargaining employee. You cannot be
on any type of paid or unpaid leave of absence, be receiving severance,
or have submitted a resignation (oral or written) on or before May 6, 1996.
Jefferson Faculty Foundation employees, clinical faculty and those assigned
to the Office of University Counsel are exempt as well. Employees in the
department of information systems may participate in the VERIP, but not
Employees applying for the VERIP must be age 55 or older and have at least
10 years of service with Jefferson by the end of 1996. While there are no
age or service requirements for VTO, Jefferson reserves the right to decline
an employee's request for the Voluntary Termination Option for appropriate
Employees who elect the VERIP will receive a one-time incentive change to
their pension benefit as well as an entension of health and dental benefits.
Employees who elect the VTO will receive severance payments and employee
benefits based on length of service.
The VERIP and VTO programs are voluntary. Eligible employees are encouraged
to carefully consider the options to make an informed decision.
Employees who may be eligible for the VERIP as well as the VTO should consider
carefully which program is more advantageous in view of their circumstances,
since they cannot participate in both.
To help in this decision-making process:
The VERIP and VTO are one-time offers. Employees must elect to participate
by June 28, 1996. Future voluntary termination programs are not contemplated
by the University. For additional information, call Brian Bowie at 3-5319
or Brian Costello at 3-5315.
- all eligible employees received a detailed package about the programs
at their homes
- informational meetings are being held throughout the decision-making
- further information is available from the department of human resources