Cambridge, Mass.-based Harvard University is asking eligible employees to voluntarily take early retirements, give up vacation time and reduce hours in an effort to manage budgetary issues caused by the COVID-19 pandemic.
The Ivy League school said that it is offering the voluntary programs because it is estimating it will face a revenue shortfall of $1.2 billion in the next two calendar years. The university said it is not planning any furloughs or layoffs at this time.
To be eligible for the early retirement program staff must work in administrative, professional, support or services and trade roles. The employee must also be at least 60 years old, with a minimum of 10 years of service. Harvard said that it would send individualized packets to eligible staff during the last week of July.
In addition, Harvard is offering all benefits-eligible, non-temporary staff members the option to take voluntary vacation time in the near-term to significantly reduce vacation time banks. This would allow local department budgets to get financial relief from a central bank, where reserves are held to fund vacation time, Harvard explained.
The third voluntary program is a voluntary reduction in hours worked. Under the program, staff can cut back their time from 10 percent to 50 percent for a minimum of two months if their manager approves. Eligible employees include non-temporary, non-academic staff in administrative and professional, support or service roles.
"Participating in one of these programs will enable staff to contribute to Harvard’s financial sustainability at a difficult time, while making choices that help support their own needs for summer 2020 and beyond. We all have a role to play, and we can all find a way to contribute during this challenging time in our lives and the life of the University," the university said.