York University's full-time faculty at or above the normal retirement age are being offered a new, time-limited voluntary separation agreement (VSA). This initiative is part of the steps being taken by the University to navigate substantial financial pressures while remaining committed to the University's academic mission.
York University's full-time faculty at or above the normal retirement age are being offered a new, time-limited voluntary separation agreement (VSA). This initiative is part of the steps being taken by the University to navigate substantial financial pressures while remaining committed to the University's academic mission.
A number of largely external factors continue to strain University resources, including the 10 per cent cut in tuition by the Ontario government in 2019-20, the subsequent tuition freeze, the lowest per-student grant revenue in the country, a rise in inflation, the lingering impact of the pandemic, and the federal cap on international student enrolment beginning in 2024-25 culminating in fewer students and less revenue per student.
Based on the fall 2025 projections, York will have experienced a 57 per cent drop in international undergraduate numbers and a 20 per cent drop in total enrolment compared to Fall 2023. In actual numbers, the University will welcome 2,300 fewer undergraduate students this fall than were welcomed in 2023. To address these circumstances and the estimated $100 million deficit in the 2024-25 budget, the York University Forward Action Plan was developed in consultation with divisions and Faculties, aimed at enrolment recovery and growth, as well as revenue diversification and reducing expenditures through administrative efficiencies.
As shared at the April Community Information Session, compensation comprises 71 per cent of York's operating expenses. Guided by the principle of prioritizing voluntary workforce reduction measures in order to limit unwanted job loss, the University offered voluntary exit programs (VEP) during 2024-25 to CUPE 1356- and YUSA-represented employees, as well as to CPM employees, resulting in 173 departures and approximately $15.5 million in savings expected in 2025-26. In 2023-24, YUFA-represented faculty members' salaries were 37 per cent of the University's compensation commitments. Currently, average salaries are $150,790 for assistant professors, $184,800 for associate professors and $237,170 for full professors. A prior voluntary separation agreement offered to post-retirement age York University Faculty Association (YUFA) members had however only three participants.
Other faculty includes: OHFA, OPSEU and exempt contract faculty; other staff includes: CUPE 1356, IUOE, non-management CPM staff and unaffiliated casuals.
Traditionally, faculty renewal has been an effective strategy for managing escalating costs while continuing to invest in the academic mission of the University. This new VSA has been modelled after more successful initiatives implemented at peer institutions. Whereas the prior VSA offered payouts between $100,000 and $125,000, faculty members who retire as of July 1, 2025 will now be offered a lump sum payment equal to their full annual salary. Those who choose to retire as of July 1, 2026 will receive 85 per cent of their full annual salary.
Faculty members interested in retiring will need to confirm this decision no later than June 27 to be eligible for these terms. This will be a one-time limited offer given both the need to realize savings sooner rather than later and the financial investment entailed by the retiring allowance.
"While we recognize there are significant initial costs to these incentives, they will provide important savings over the longer term," explains Narin Kishinchandani, vice-president finance and administration. "For example, if 20 per cent of eligible faculty accept a VSA - that is about 38 faculty members - we estimate the University could save up to $8.3 million starting in 2027-28. Even if we factor in replacing each of those retirements with full-time assistant professors, we still stand to save $4.5 million."
"The academic integrity of the University remains a top priority", assures David Peters, interim provost and vice-president academic. Pointing to the successful Faculty Complement Renewal Strategy, which added more than 200 tenure stream faculty between 2017 and 2023, representing a 14 per cent increase, Peters adds that "hiring was done mostly at the assistant professor rank with the goal of growing and diversifying our faculty complement in advance of projected retirements." The University remains committed to investing in complement to maintain the momentum that has been achieved in advancing our priorities.
The VSA represents a principled, forward-looking approach to York's financial challenges, according to Laina Bay-Cheng, vice-president equity, people and culture. "Voluntary separation agreements for faculty are a path to much-needed savings and if successful, will help protect academic offerings, services for students and scholars, and jobs across the University. It is a way for us to be financially responsible while staying true to our mission and principles."
Together with the other projects in the Forward Action Plan, the goal is to maintain York's trajectory as a comprehensive, high-quality and research-intensive University while ensuring the long-term financial viability of the institution. The plan has been informed by the province's financial health metrics, the Strategic Mandate Agreement 4 (SMA4), and the recommendations from the Ontario auditor general's "Value-for-Money" assessment.
"Higher education is characterized by rapid change and increasing competition. In order to retain York's distinct leadership in the sector, community members have leaned into our historical strengths in innovation and collaboration reimagining our academic structures, enhancing and developing interdisciplinary programs and research responsive to societal needs, and expanding services to support our diverse student population," says President and Vice-Chancellor Rhonda Lenton. "The financial challenges brought on by government policies are difficult, although the province is expected to invest further funds over the next five years. The 17 interconnected projects in the Forward Action Plan will bridge to that new revenue and ensure that York achieves a balanced budget over that period."
The University community is encouraged to visit the York U Forward Action plan website for details about the work underway. Information about the VSA opportunity, including an FAQ, dates for pension advising sessions and other resources are available on yu link.
This story was originally featured in YFile, York University's community newsletter.
