Dive Brief:
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Some large institutions in Alabama offer prospective faculty two retirement plans; in addition to the state’s Retirement Systems of Alabama plan, Auburn and the University of Alabama contribute significant amounts of money to separate 403(b) plans for employees.
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Officials at smaller Alabama institutions are looking to the state to provide additional funding to enable them to offer private retirement plans as well, saying larger institutions’ ability to offer a second retirement plan provides an unfair recruiting advantage over them, the Times Daily reports.
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The state’s RSA is only available to those who have worked at an institution for at least 10 years, which some officials and lawmakers say is a competitive disadvantage in luring faculty who do not intend to stay long-term.
Dive Insight:
The frustration over the benefits allowance in Alabama is more than just widespread whining; it’s a growing issue for smaller universities hoping to remain competitive in luring top-notch faculty to campus. A recent study found faculty at larger institutions make about 20% more in pay and benefits than peers at smaller, rural institutions, and a push to unionize by faculty at many institutions is driving that number higher.
In Alabama, smaller schools sought a legislative fix: more dollars appropriated to the smaller institutions and more flexibility in their budgets. But the bill was denied. As states continue to cut back on higher ed funding, the disparities between schools with large endowments and the other institutions in a system continues to widen.