EPC works closely with Colleges and University systems to develop and implement severance plans. These plans can be offered on a group wide basis, or by department, or offered to specific individuals.

Today’s higher education field demands new courses and programs, new technology, new teaching methods, and new human resource management techniques. In these modern times we find classrooms taught by professors with wisdom of the ages are being supplemented, if not replaced by, on-line classrooms and in-class computers. Today, a notebook is a computer, not spiral bound paper. The librarian is a search engine. Papers are submitted by e-mail. A student ID is now a PIN. A thoughtfully and properly structured early buy-out severance plan is a graceful mechanism toward meeting some of the demands, and bringing about healthy updates and transitions.

Colleges and universities are driven by:
	cost-effective use of budget dollars
	maintaining leading edge classes and programs
	keeping tuition fees marketable
	attracting the highest quality faculty
	attracting students.

A shortfall in any of the above areas can lead to fewer students, fewer operating dollars, and a resulting need to downsize programs and staff.

Is an early buy-out severance plan viable or applicable at your institution?
Here are indicators that point toward the potential use of an early buy-out severance plan:

To meet a need to -

	hire new faculty in certain disciplines
	reduce the number of faculty in certain disciplines, and increase faculty in other areas
	cut costs and reduce overall budget strain
	meet negotiated severance and/or retirement plan issues

- an early buy-out plan may or may not be viable or desirable at your institution.

Before implementing a plan, consider:
	A thorough analysis and projection of the financial and staff impact. A properly structured plan can reduce costs dramatically. An improperly implemented plan can cost more than it gains.
	Many plans are implemented with good intentions, and then are discovered to have incorrectly addressed some of the following taxation issues: Up front tax? Risk of forfeiture? Form W-2? Form 1099? Form 941?
	Discrimination issues and the ADEA – Age Discrimination in Employment Act and the OWBPA – Older Workers Benefit Protection Act.
	Impact on Normal retirements.

EPC – Educators Preferred Corporation prepares a thorough pre-plan analysis that incorporates both the objectives and data of the university. The result is a concise yet comprehensive report that outlines plan criteria and the resulting impact on staff and budgets.