To University of Rochester Faculty and Staff:
As we approach a full year under the cloud of COVID-19, we are immensely proud of how the University of Rochester community has responded to this crisis. We applaud your resilience, your ingenuity, and your selflessness as we have continued to navigate all of the changes the pandemic has caused in our personal and professional lives.
The unprecedented financial challenges the University has faced in the last 11 months necessitated difficult and painful decisions at a time when our ability to foresee future needs was extremely limited. Although the cost-saving measures we implemented were necessary, we know that the furloughs and salary and retirement benefit reductions we implemented presented significant hardships for many of you.
These were not easy decisions, but they made it possible for us to weather the pandemic’s financial pressures. The cuts, which were always intended to be temporary, generated significant savings that helped to partially offset COVID-related revenue shortfalls and unanticipated expenses, such as increased costs for PPE. Revenues from tuition and room and board have continued to be negatively affected, but at the Medical Center, clinical volumes have returned to pre-COVID levels much more quickly than anticipated, and revenues through the first six months of the fiscal year 2021 are higher than those for the same period last year.
It’s still difficult to know with certainty what financial challenges may lie ahead as the pandemic continues, but we’re optimistic enough about our financial position to announce the following:
- Faculty and administrators who had salaries reduced will see their salaries reinstated to their full amount, retroactive to January 1, 2021, with the exception of the President’s Senior Leadership Group and a few other senior administrators, who will continue to receive a reduced salary through June 30, 2021, to support the University’s continuing financial recovery. February 2021 paychecks will reflect this reinstatement; however, salary amounts forgone prior to January 1 will not be “caught up” through other payments.
- All employees will have full salary reinstatement as of July 1, 2021.
- For those employees who participate in the University’s Retirement Program, University direct contributions will be partially reinstated using a modified two-tiered calculation: 6.2% of contributions for salary up to $61,300 and an additional 10.5% of contributions for salary between $61,300 and $140,000. For those making under $140,000, this means a full reinstatement of retirement contributions. For those making over $140,000, the reinstatement will be partial. In May, eligible participants who are actively employed by the University as of March 31, 2021, will receive a lump sum contribution into their University TIAA retirement accounts reflecting these changes. The partially reinstated contributions up to the $140,000 salary level will be paid through June 30, 2021.
- The University will return to the full standard two-tiered retirement formula for all eligible employees beginning July 1, 2021.
- The annual wage and salary program, which was suspended last year, will be reinstated for fiscal year 2022, beginning July 1, 2021. As in past years, the current planned pool is 2%, although that is subject to change depending on our financial position.
In addition to these actions, we are very pleased to be able to announce our commitment to raising the minimum wage for University employment to $15 an hour by December 2022. The increase will be implemented in two stages, in December 2021 and December 2022, with wage compression adjustments applied where necessary. This is an acknowledgement of our responsibility, not only as the largest employer in the region, but also as a mission-driven institution committed to equity, diversity, and inclusion. More information about this plan will be shared as soon as it is available.
Although our financial outlook is brighter, we still cannot predict with certainty the trajectory of the virus or where it may take us over the next few months. We will continue to monitor and respond to this evolving situation as needed, and keep you informed of our progress.
Once again, we thank all of you for your partnership as we have weathered the financial challenges presented by the COVID-19 pandemic. We also acknowledge and thank you for the sacrifices you have made to support the University’s financial health, as well as the health, safety, and well-being of our entire community.
Meliora,
Sarah C. Mangelsdorf
President and G. Robert Witmer, Jr. University President
Robert L. Clark
Provost and Senior Vice President for Research
Mark B. Taubman
CEO, University of Rochester Medical Center and Dean, School of Medicine and Dentistry
Holly G. Crawford
Senior Vice President for Administration and Finance, CFO, and Treasurer