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Change in Employer-Paid Post-Retirement Health Benefits
For Employees Hired On or After July 1, 2010

Attachment B

Excerpt from existing Coalition agreement addressing employer-funded post-retirement health benefits for new employees:

At such time as the leadership of Michigan State University makes a public statement that the elimination of post-retirement health care benefits for new employees of the MSU community is a necessary economic strategy, the parties agree to bargain over the terms of an exit strategy, with the goal of implementing the strategy and resulting change for new hires by July 1, 2010. If the parties have not reached an agreement regarding an exit strategy by July 1, 2010, the Employer reserves the right to declare an impasse and implement its last best offer and will continue to bargain over the terms of the implementation if the unions so demand. If, however, the Employer has not implemented changes in post-retirement health care benefits for non-represented faculty and academic staff hired on or after July 1, 2010 by that date, this paragraph will no longer apply.

Excerpt from UCFA 2010-11 Salary Recommendation

At this time, little concrete information is available for 2010-11 salary increases across the Big Ten.  For 2009-10, average faculty compensation at MSU remained in the middle of the Big Ten, ranking 4th of 11, inclusive of retirement and health care expenses (Figure 1).  However, with the elimination of funded post-retirement health benefits for the spouses of new hires in 2005 and the anticipated elimination of post-retirement health benefits for both spouses and the employees for new hires in the near future, augmented salary rankings become a critical factor in maintaining overall compensation levels.

On-going Bargaining/Consultations

The Union of Non-Tenure Track Faculty is currently bargaining with the University. The leadership of the Academic Specialist Advisory Committee is aware of the post-retirement health issue for new employees and will meet later this month.


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