News regarding the “U” always captures the public eye, however this latest news from the Michigan Daily is most unusual.

In a presentation to the University Board of Regents on Thursday, Frederick Askari, chair of the Committee of the Economic Status of the Faculty and a clinical associate professor of internal medicine, said approximately 50% of the University’s faculty will be eligible for retirement by 2013.

Askari and his committee studied benefits and salaries of employees at the University’s Ann Arbor campus and stated that the University may face a challenge in recruitment and retention due to an increase in retirement of University employees. Of course UM is not alone as it is part of the nationwide trend of the baby boom generation approaching retirement.

He added that increase in retirement may cause problems in maintaining faculty salary and benefits at their current level without an additional cost to the University.

The report stated that many faculty and retirees have realized a loss of net worth due to the downturn in the real estate market, while the faculty and retirees who live in Ann Arbor may have to pay higher property taxes because of the loss of $8 million in real estate taxes that Pfizer Inc. had paid before it sold its property on North Campus to the University.

UM still is one of the best employers in the area to work for, therefore we will watch closely as this story unfolds in the coming months.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.