Rell, Hogan disagree on 'double-dipping' practice
Christopher Duray
Issue date: 2/27/09 Section: News
UConn is one of many state agencies attempting to save money by rehiring retired employees on a part-time basis, despite Gov. Rell's objections that it exploits the pension fund.
There is no official policy at the university to encourage the practice, known as "double-dipping," but since the school pays retirees at a part-time rate and is not responsible for benefits, department heads are generally able to hire more experienced staff at a lower rate. Meanwhile, the state still pays the employees their tax-supported pensions.
Gov. Rell has announced that she is trying to stop double dipping by barring retirees from more than two 120-day contracts in state agencies. The policy does not apply to UConn, as Rell does not have direct administrative control over Connecticut education systems. However, the governor has asked the trustees to impose similar policies and is seeking to expand her control through the legislature.
"Taxpayers have a right to wonder who really benefits when these 120-day contracts … become a matter of routine, especially for ex-employees who are already drawing sizable state pensions," said Rell in a recent press release, in which she criticized the practice as "[an abuse of] the system to collect both a pension and a paycheck."
According to University Spokeswoman Karen Grava, as many as 350 UConn employees are retired, about 3 percent of the workforce, and that the majority of the retirees work in clerical jobs for wages below $10,000. Those working as professors, however, make much more money, upwards of $30,000.
The highest paid retiree is education professor Joseph Renzulli, who receives a wage of $138,000 and a pension of $162,000. But according to Grava, the research grants that Renzulli brings to the university cover not only his, but also three other professor's salaries.
President Hogan said at a recent Board of Trustees meeting that through grants, auxiliary revenue and other non-state funding covering retiree salaries, taxpayers are not paying any more money than they would if the employees were not working.
There is no official policy at the university to encourage the practice, known as "double-dipping," but since the school pays retirees at a part-time rate and is not responsible for benefits, department heads are generally able to hire more experienced staff at a lower rate. Meanwhile, the state still pays the employees their tax-supported pensions.
Gov. Rell has announced that she is trying to stop double dipping by barring retirees from more than two 120-day contracts in state agencies. The policy does not apply to UConn, as Rell does not have direct administrative control over Connecticut education systems. However, the governor has asked the trustees to impose similar policies and is seeking to expand her control through the legislature.
"Taxpayers have a right to wonder who really benefits when these 120-day contracts … become a matter of routine, especially for ex-employees who are already drawing sizable state pensions," said Rell in a recent press release, in which she criticized the practice as "[an abuse of] the system to collect both a pension and a paycheck."
According to University Spokeswoman Karen Grava, as many as 350 UConn employees are retired, about 3 percent of the workforce, and that the majority of the retirees work in clerical jobs for wages below $10,000. Those working as professors, however, make much more money, upwards of $30,000.
The highest paid retiree is education professor Joseph Renzulli, who receives a wage of $138,000 and a pension of $162,000. But according to Grava, the research grants that Renzulli brings to the university cover not only his, but also three other professor's salaries.
President Hogan said at a recent Board of Trustees meeting that through grants, auxiliary revenue and other non-state funding covering retiree salaries, taxpayers are not paying any more money than they would if the employees were not working.
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George Patsourakos
posted 3/01/09 @ 6:35 PM EST
For UConn to rehire retired employees on a part-time basis -- while these employees also collect a pension -- is an unethical practice of UConn that should cease. (Continued…)
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