May 29-30, 2003


ITEM 119-2401-R0503������������� Increase Authority Level for Voluntary Early Retirement Incentive Program; Montana State University Extension Service


THAT:����������������������������������� The Board of Regents of Higher Education authorized the MSU Extension Service to offer a Voluntary Retirement Incentive Plan to select employees at the January 2003 meeting. The Board of Regents also increased the MSU Extension Service FY 03 HB2 Smith-Lever authority by up to $280,000, from $2,278,065 to $2,558,065 to accommodate the cost of the retirement incentive.� As the federal government prohibits using federal dollars to pay retirement incentives, we will be substituting payroll expenses of some employees paid on state general fund to federal Smith-Lever funds in order to use state general funds to pay the retirement incentive costs.


The Extension Service requests that our FY 03 HB2 Smith-Lever authority be further increased by $79,000, from $2,558,065 to $2,637,065 to accommodate higher then anticipated costs of the retirement incentive and associated termination leave payouts.


EXPLANATION:�������������������� The Extension Service estimates that it will have more participants in the retirement incentive plan than originally estimated.� The $79,000 increase to our FY 03 HB2 Smith-Lever authority will allow us to help manage the higher incentive and termination leave payout costs.�