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It is important that the college maintain competitive
compensation to assure success in recruitment and retention. Under current economic
conditions, salary increases in higher education can be anticipated to be much lower
over the next few years. Smith, along with many other colleges and universities,
has already announced a salary freeze for 2009-10.
In addition, funds can be saved through actively managing
benefits costs and re-evaluating some benefits. Overall, Smith’s current benefits
are in line with those of similar colleges, while lower in selected areas and higher
in others. Over time, benefits have grown significantly relative to salaries. The
benefits rate for full-time positions is 32.5 percent for 2008-09, which is 10 percent
higher than the rate of 29 percent just six years ago.
To achieve savings in compensation, the plan calls for:
- Forgoing July 1, 2009, salary increases, as announced in March.
- Forgoing salary increases in 2010-11 while reserving a pool of funds for a 2
percent salary increase for staff and faculty earning $75,000 or less, effective
July 1, 2010.
- Capping tuition benefits at 2008-09 dollar amounts for dependents enrolled in
college, the Campus School and the Center for Early Childhood Education, effective
July 1, 2009, and extending the waiting period for tuition benefits from three
years to five years for employees hired after July 1, 2010.
- Holding the 2010 expected increase in health insurance premiums to approximately
5 percent through modest increases in co-payments and increases in deductibles
and out-of-pocket maximums. Make additional minor policy changes.
- Eliminate the Emeriti Program* retiree health benefit. Smith will continue to
offer a group retiree health plan that employees may join at their expense. Human
Resources will follow up with more information for those affected by the Emeriti
Program elimination.
* Smith began offering The
Emeriti Retiree Health Plan, administered by Fidelity
Investments, in 2005, allowing the college to set aside funds available to faculty
and staff after retirement to pay for qualified health-related expenses. Discontinuing
the program would mean returning to a model that provides retirees access to a Medicare
wrap-around program.
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Message from
the President
Introduction
Employee
Compensation
Student-to-Faculty
Ratio
Comprehensive
Fee
Revenue
Facilites & Utilities
Study
Abroad
Libraries &
Information
Technology
Services
Administrative,
Student & Academic Support
Revenue
Generation
Investment
Required
Appendix
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