Facing devastating financial losses related to the coronavirus pandemic, colleges and universities are cutting costs just about everywhere they can. Increasingly, that includes faculty and staff retirement benefits.
Duke, Georgetown, Northwestern and Texas Christian Universities are some of the institutions to announce cuts to retirement contributions in recent days. Some of these decisions have been more severe and more controversial than others…
Georgetown president John J. DeGioia also announced that the university will suspend all contributions to its employee retirement plan for the coming year, starting next month.
Does this mean they think their faculty are myopic, and also liquidity-constrained low savers? Are the faculty myopic? Especially if faculty are myopic, isn’t this worse for faculty welfare than just cutting nominal wages a bit? What would Cass Sunstein say? How should we model this response in terms of an underlying dynamic for admin.-faculty relations? If this “works,” what will the next move of admin. be, with or without coronavirus in the world?
What might this possible myopia imply about the associated defects of faculty research and teaching?
I thank Bryan for an underlying conversation relevant to this post. Here is the full article.