Senate Bill 10-11-30
| Bill ID: | 10-11-30 |
| Name: | Proposal for Changes to the Optional Retirement Plan |
| Proposed: | 11/09/2010 |
| Sponsor: | Faculty & Staff Affairs Committees |
| Proposal: | During its review of Senate Document 10-11-10, the Retirement Program Selection Process Working Group - containing three members from both the Faculty Affairs and Staff Affairs Committees - determined that the University of Maryland has a notably low employer contribution to the Optional Retirement Program (ORP), amongst other inequities. Both the Senate Faculty Affairs and Staff Affairs Committees recommend that, for Faculty and Exempt Staff members who participate in the ORP, the following proposal be put forth: 1. Increase the employer's contribution to the ORP from the current 7.25% of annual pay to 10%, phased-in over two years. 2. Require employees participating in the ORP to contribute 2% of their annual pay to the program. This would be phased in over a two-year period, with a 1% employee contribution to kick in on 7/1/2012, and an additional 1% employee contribution on 7/1/2013. Notably, in 1998, the State began requiring an employee contribution for the Retirement and Pension System Participants, and it is the next logical step to require the same of ORP participants. 3. Establish parity between the ORP and Maryland State Retirement and Pension System with regards to retiree health insurance benefits for dependents by making the benefits available with 16 years of employee service, irrespective of the retirement program. |
| Active? | No |
| Related Bills: |
Status
| Status: | Completed |
| Completed On: | 12/13/2010 |
History
| Status: | Complete |
| Reviewer: | Board of Regents (BOR) |
| Received: | 2010-12-13 |
| Decision: | The BOR reviewed the proposal. |
| Actions: | The proposal was forwarded to the Board of Regents (BOR) for consideration. No further action was taken by the BOR. |
| Status: | Complete |
| Related Files: |
| Status: | Complete |
| Reviewer: | Senate |
| Received: | 2010-12-01 |
| Decision Date: | 2010-12-08 |
| Decision: | The Senate voted to approve the proposal. |
| Actions: | The Senate reviewed the proposal at its December 8, 2010, meeting and voted to approve the recommendations. |
| Next Step: | Presidential Approval |
| Related Files: |
| Status: | Complete |
| Reviewer: | Senate Executive Committee (SEC) |
| Received: | 2010-11-10 |
| Decision Date: | 2010-11-17 |
| Decision: | The SEC voted to place the proposal on the December 8, 2010 Senate meeting agenda. |
| Actions: | The SEC reviewed the proposal at its November 17, 2010, meeting and voted to forward the item to the Senate for review. |
| Next Step: | Senate Review |
| Related Files: |
| Status: | Complete |
| Reviewer: | Faculty Affairs Committee <i>and</i> Staff Affairs Committee |
| Received: | 2010-10-29 |
| Decision Date: | 2010-11-01 |
| Decision Due By: | 2010-11-05 |
| Decision: | The committees voted to forward their recommendations to the SEC for consideration. |
| Actions: | On September 3, 2010, the Senate Faculty Affairs and Staff Affairs Committees were charged by the Senate Executive Committee with jointly reviewing a proposal submitted by a faculty member regarding the retirement program selection process for Faculty and Exempt Staff at the University (Senate Doc. 10-11-10). The committees were asked to conduct a preliminary evaluation that will help determine whether there are areas of concern. A Working Group was established, containing six members-three from Faculty Affairs and three from Staff Affairs. The Working Group met over the course of two months to research, review, and report back to the full committees on its findings and recommendations. The Working Group presented its draft report to both full committees on November 1, 2010. The draft report included a proposal for changes to the ORP. The committees subsequently voted to extract the proposal, due to its time-sensitive nature, and submit it for action now. |
| Next Step: | SEC Review |