Penn State University is offering eligible faculty, staff and administrators on its 20 Commonwealth campuses the option to leave their jobs with a lump sum payment and benefits.
The move comes as Pennsylvania’s flagship public university works to shrink a multimillion-dollar budget deficit. A number of its Commonwealth campuses, including those in Western Pennsylvania, have sustained sharp enrollment losses in recent years.
The Voluntary Separation Incentive Program — with enrollment open now through May 31 — will provide a financial incentive to eligible faculty and staff at the Commonwealth Campuses who wish to retire or pursue or other jobs outside Penn State, officials said Wednesday.
Those eligible are entitled “to a lump sum payment equal to 12 months of their base salary, less applicable withholdings and deductions,’’ according to Penn State’s website.
Those who can participate include non-union employees hired for a full-time position before April 1, 2023, who are not contract workers.
The university did not indicate if it has a target number of employees it hopes will choose to leave.
The program is not expected to be used at University Park, the law schools or the College of Medicine, though officials said the decision may be reevaluated.
“With the challenges facing all of higher education, our entire institution needs to evolve in order to continue serving the residents of Pennsylvania,” said Penn State President Neeli Bendapudi. “We are currently working to identify every opportunity to strengthen our Commonwealth Campuses and achieve our budgetary objectives.
“As always, our teaching, research and service mission to the commonwealth remain at the very core of all decision making,” Bendapudi added.
Penn State branches, like other regional campus systems, have seen losses as high school graduation and birth rates drop.
“We’re working collectively with all of our Commonwealth Campuses and are looking at opportunities for each campus to focus on distinct areas of excellence, align each offering with the needs of students, and reduce expenses,” said Margo DelliCarpini, vice president for Commonwealth Campuses.
Involuntary layoffs and non-reappointments could occur in the future and could include people who are eligible for this program, officials said. The benefits under the Voluntary Separation Incentive Program would not be offered in those cases.
