Harrisburg – The Board of Governors of the Pennsylvania State System of Higher Education today approved a voluntary retirement incentive program as part of a broader, ongoing workforce planning effort involving the 14 PASSHE universities and the Office of the Chancellor.

The retirement incentive will be available to full-time, permanent employees – both union and management – who are at least 60 years of age or have 35 years of service and are eligible to receive annuitant health care benefits. The program will not create an additional liability for the state-employee pension funds.

“We are facing very difficult financial challenges, just like every other higher education institution in America,” said PASSHE Board of Governors Chairman Kenneth Jarin. “Students will always be our top priority. We are committed to providing them with quality education that is affordable. We will take whatever difficult steps are necessary to accomplish that.”

Agreements to authorize the incentive are being finalized with five separate labor unions: the American Federation of State, County and Municipal Employees (AFSCME); State College and University Professional Association (SCUPA); Security, Police and Fire Professionals of America (SPFPA), Office of Professional Employees International Union Healthcare Pennsylvania (OPEIU); and the Pennsylvania Social Services Union (PSSU). PASSHE employees who are not represented by a collective bargaining agreement also will be able to participate in the voluntary program.

“The conversations we had with our unions were frank and very productive,” said PASSHE Chancellor John C. Cavanaugh. “Both sides learned a lot. These five unions understand the financial situation the State System faces. We all agreed to keep the main focus of providing a great education to students as our top priority.”

Eligible PASSHE employees will have a two-month period – from March 29 through May 28, 2010 – to decide whether to accept the retirement incentive. Informational meetings will be held on all of the campuses to explain the program and to answer any questions employees might have.

The Pennsylvania State System of Higher Education is the largest provider of higher education in the Commonwealth, with nearly 117,000 students. The 14 PASSHE universities offer degree and certificate programs in more than 120 areas of study. Approximately 454,000 PASSHE alumni live and work in Pennsylvania.

The state-owned universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock and West Chester Universities of Pennsylvania. PASSHE also operates branch campuses in Clearfield, Freeport, Oil City and Punxsutawney and several regional centers, including the Dixon University Center in Harrisburg.