History
The benefits issue has been among the mostpressing in the FAS since the University TaskForce on Benefits' original announcement lastJune, which called for the one percent reductionand the "hard cap" on medical benefits.
The announcement itself was somewhat rocky. Thetask force had originally been chaired by formerprovost Jerry R. Green. Green, an economist andthe task force's only academic, left the committeeupon his resignation as provost last April, andsubsequently refused to sign the committee'sreport.
Faculty members revolted upon the release ofthe report. At full faculty meetings last Octoberand November, professors expressed outrage at boththe decision itself and the process by which itwas made.
President Neil L. Rudenstine's November reporton the issue further enraged members of thefaculty. In that month's faculty meeting, therewas open opposition and a level of animosity thatclearly surprised Rudenstine.
McKay Professor of Computer Science Barbara J.Grosz summed up the general feeling.
"It seemed as though we were being treated moreas employees of a business than members ofcommunity," she said.
The ordeal took an obvious toll on thepresident. At one point during the Novembermeeting, Rudenstine looked down at the table andshook his head in dejection. Just days after themeeting, the University announced that thepresident would take a medical leave of absence torecuperate from severe fatigue and exhaustion.
Comparative Assessment
Although the Faculty has objected strongly tothe reductions, many impartial observers havedescribed Harvard's package as extremely generous.
The benefit cuts announced last June wereenacted to try to curb the yearly deficit theUniversity runs despite its almost $6 billionendowment.
Presently, the University contributes 11percent of salary up to $61,200 to the pensions offaculty above age 40 and 16 percent, an amounttermed "sumptuous" by Fortune magazine, ofany salary above $61,200.
The plan costs Harvard more for older facultywho generally earn higher salaries and, thus, reaplarger contributions. And with the averageretirement age increasing, the Universityestimates benefits costs will rise significantlyin years to come