Duke University and Georgetown University will suspend contributions to their employee retirement plans and make other cutbacks to address an escalating financial crisis caused by the coronavirus pandemic, presidents of the schools said.
In a message Wednesday to Duke faculty and staff, President Vincent E. Price announced several cost-cutting measures, including temporarily suspending the university's retirement contributions for one year.
"To avoid cutting direct compensation, we will instead temporarily suspend all employer contributions to the Duke Faculty and Staff Retirement 403(b) plan for a period of 12 months," Mr. Price said in the message.
Duke employees who earn more than the federally mandated 403(b) contribution threshold of $285,000 will also see a temporary 10% reduction in the portion of their salary above that threshold, for 12 months. Those measures and other cost-saving efforts will save an estimated $150 million to $200 million next fiscal year, he said, "and provide, we hope, the necessary resources to sustain and advance our academic programs for the near-term."