As you know, in July, 2008, President Mason delayed implementation of the FRIC recommendations. This was a major victory for the FixFlex community. The final statement in President Mason’s email, however, laid out the challenges for the future. She stated:
“On January 1, 2011, [UI will] implement the May 2008 FRIC recommendations. The University of Iowa administration may modify these recommendations if financial circumstances warrant or if the University governance process produces additional modifications that improve upon the 2008 FRIC recommendations while still achieving the goals of financial sustainability and competitive fringe benefits.”
Since August, 2008, John Spencer has been in touch with members of FRIC, encouraging them to be open to new ideas regarding the future of the Flex System. They have been receptive, and have been working hard to consider suggestions from FixFlex, suggestions they received in 2008 via the HR website, as well as suggestions from other charter committees on campus.
In November, 2008, John Spencer made a presentation to FRIC outlining a new benefits plan which has been dubbed “The Spencer Plan”. A copy of this presentation is available at www.FixFlex.org.
The Spencer Plan is motivated by 5 central principles: (1) to maintain the Flex System and, therefore, maintain employee choice, (2) to treat ALL employees equitably, (3) to maintain a family-friendly work environment, (4) to be financially sustainable, and (5) to protect employees from rising health-care costs.
At the February FRIC meeting, Richard Saunders presented a cost analysis of the Spencer Plan. The bottom-line: this plan saves money relative to the current Flex system, but costs 1.6 million more than the proposed FRIC plan.
John Spencer suggested that much of this 1.6 million difference could be made up by implementing the Spencer Plan in 2010 (instead of 2011). The Spencer Plan is cheaper to implement because it does not require a re-tooling of the benefits system. And given that this plan saves money relative to the current benefits system, implementation in 2010 would save UI money.
An analysis is currently underway to project three plans out for a 5-year window: the current Flex system, the proposed FRIC plan, and the Spencer plan. This analysis will be presented at the FRIC meeting on 3/6.
PROSPECTS
The Spencer presentation to FRIC listed 8 advantages of the Spencer Plan over the FRIC plan. The one disadvantage: the 1.6 million difference in cost (and, by definition, lower projected savings over time). Some of this can be overcome through cheaper implementation and greater stability during the transition. But, clearly, the FRIC plan will save more money over time. Given this, there may be strong momentum to move in this direction.
Within this context, two things are critical:
1. BOTH PLANS SAVE MONEY.
2. AS WE MAKE THE HARD ECONOMIC DECISIONS AHEAD, WE MUST HAVE MORE THAN THE BOTTOM-LINE IN MIND.
To quote Provost Loh: “A national economic crisis provides a chance to re-examine, more closely than ever, our institutional priorities. It’s a call to measure everything we do against our fundamental values.”
The Spencer Plan achieves the goals of financial sustainability and competitive fringe benefits, but keeps the fundamental values of the UI Community in focus. It achieves cost savings, but maintains choice, equity, a family-friendly environment, and greater employee satisfaction.
A CALL TO ACTION
As you all know, these are dire economic times. This week, a group has started to examine possible ways for UI to save money by changing the benefits system (see story in the 2/18 Press Citizen available at www.FixFlex.org). One suggestion is to implement the FRIC proposal a year early, although multiple options are on the table.
In this context, IT IS NOW TIME TO RE-ENERGIZE THE FIXFLEX COMMUNITY. It is time for members of FRIC to hear from us. It is time for Faculty Senate and Staff Council to hear from us.
It is time to act.
WHAT YOU CAN DO NOW
1. Read the Spencer Plan at www.FixFlex.org and re-acquaint yourself with the issues.
2. Attend the FRIC Meetings on 3/6 and 4/3 from 11:30-1pm in Room 302 USB
3. Vote for candidates in the up-coming faculty and staff committee elections who take a stand on the benefits issue.
4. Voice your opinion by emailing members of FRIC, Faculty Senate President, and Staff Council President.
NOTE: THESE PEOPLE ARE NOT OUR ADVERSARIES, THEY ARE OUR REPRESENTATIVES!!! THEY ARE OPEN TO INPUT. THEY WANT FEEDBACK.
So tell them where you stand and why you have adopted this position.
>> Contact FRIC - Tell them your story.
FixFlex has always tried to encourage discussion and dialogue with a sense of shared purpose, and the time has come to take up this charge once again. We look forward to being a POSITIVE INFLUENCE in the coming months as challenging economic decisions are weighed and made. We can weather this storm, but we MUST do this while maintaining our commitment to one another and to the future of this great university.
Sincerely, John Spencer
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