Workforce Adjustment Plan MOU: Presentation to Faculty Association Members

1. Workforce Adjustment Plan MOU: Presentation to Faculty Association Members University of Northern British Columbia February 28 and March 1, 2007 MOU developed by Howard Brunt, Darwyn Coxson, Mike Knudson, Dennis Macknak, Gordon Martel

2. Agenda • Eligibility • The Three Options: • Voluntary Incentive-based Severance • Early Retirement • Workload Reduction Supplement • Salary Continuance Calculation • Timelines • Decision-making Process • Questions and Discussion University of Northern BC

3. Eligibility for Incentive Plan • From a Designated Program • CSAM: • Math: 1 position • Physics: 1-2 positions • ENSC/Geog: 1 position • ESM: 1 position • CASHS: • ECON: 1-2 positions • INTS: 1 position • POLS: 1 position • ANTH: 1 position • Library: 1 position • Or Aged 60+ by the end of the buyout period if not from a Designated Program University of Northern BC

4. Options for members from Designated and Non-designated Programs • Designated programs • All options available • Non-designated programs • Available only if 60+ by end of buy-out period • Phased-in retirement option • Voluntary incentive-based severance University of Northern BC

5. Voluntary Incentive-based Severance • Effective date: By July 1, 2008 with all regular salary/benefits until effective date • Post-Effective date: 12-18 months salary continuance with most benefits* or lump-sum payout at the member’s discretion * all benefits and university pension contribution except for LTD, out-of-country extended health, life insurance, and AD&D. University of Northern BC

6. Voluntary Incentive-based Severance Scenario • If you elect to begin July 1, 2008 and take salary continuance for one year: • You receive your salary through June 30, 2009 or take a lump sum payout on/after July 1, 2008 • Full benefits through June 30, 2008, then modified benefits for continuance period • If you are re-employed at anytime during the period of salary continuance, you receive a lump sum payout of what is left and no further benefits University of Northern BC

7. Early Retirement • Effective date: By July 1, 2008 with all regular salary/benefits until effective date • Post-Effective date: 1 or 2 year phase-in of 25 or 50% workload and salary reduction followed by: • 12-18 months salary continuance with most benefits* or lump-sum payout at the member’s discretion * all benefits and university pension contribution except for LTD, out-of-country extended health, life insurance, and AD&D University of Northern BC

8. Early Retirement Scenario • If you elect to begin July 1, 2008 and take a 25% salary reduction for 2 years: • Receive your regular salary through June 30, 2008 • Your salary/workload is reduced by 25% until June 30, 2010 • Receive the nominal salary paid on the last of day of regular employment for the continuance period or choose to take a lump sum payout at any time after July 1, 2010 • If you are re-employed at anytime during the period of salary continuance, you receive a lump sum payout of what is left and no further benefits University of Northern BC

9. Reduced Workload Supplement • Effective date: By July 1, 2008 • permanent reduction by 50 – 66% with supplement to 100% salary for 12 months from effective date • Regular benefits continue as per Article 37 University of Northern BC

10. Reduced Workload Supplement Scenario • If you elect to take a 50% permanent workload reduction on July 1, 2008: • Continue at current workload and salary through June 30, 2008 • Go on reduced workload July 1, 2008 and receive full salary through June 30, 2009 • Salary and workload reduced to 50% on July 1, 2009 University of Northern BC

11. Salary Continuance Period Calculation Underlying Formula: (nominal X 9) + (nominal X years) to a max of 18 OR (nominal X 12) whichever is greater Examples: • 3 or fewer years of service will get 12 months • 9 or more years of service will get 18 months • 6 years of service = 9 + 6 = 15 months University of Northern BC

12. Benefits and Pension during salary continuance period • Pension contributions continue • All other benefits continue except for LTD, out-of-country extended health, life insurance, and AD&D • Contact Mike Knudson regarding any benefit/pension questions (confidential) • Sun Life Representative available to provide information about pension options • You are encouraged to use your own financial advisor/accountant/lawyer for any specific issues you wish to address University of Northern BC

13. Sun Life Representative Information • Call toll free 1-877-893-9893 • Ask for Josh Bertram or Heather Moogk • Or call 1-800-387-2636 and ask for Josh (ext 8506) or Heather (ext 7862 University of Northern BC

14. Timelines • Application to Provost’s Office (Donna Plourde) by March 16 for all options • Notification of approval on March 20 for VIBS and WLR and acceptance of Early Retirement • Early Retirement phase-in will be negotiated with chair/dean and approval decision by March 30 • Notification to rescind by a member is April 16 for a July 08 start and May 16 for a July 07 start date University of Northern BC

15. Decision-making process • All discussions are confidential • Consultations with chair, dean, provost as required • Member applications from Designated Programs are selected based on seniority (if required) • Member applications from non-designated programs are selected based on an impact assessment (budget, program effects, AVI) University of Northern BC

16. Questions / Discussion University of Northern BC