Tag: payment

  • UCLA consolidates IT, pauses faculty hiring as Trump administration seeks $1B payment

    UCLA consolidates IT, pauses faculty hiring as Trump administration seeks $1B payment

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    Dive Brief:

    • The University of California, Los Angeles has paused faculty hiring for the next academic year and is consolidating its cross-campus information technology teams as the public institution weathers financial attacks from the Trump administration on top of existing budget woes. 
    • In a community message Wednesday, two top UCLA leaders said they will “be prudent in making organizational changes, and do so in close collaboration with leaders across campus.” UCLA did not immediately answer questions Thursday about whether the IT consolidation will include layoffs.
    • The announcement follows a message late last week from Chancellor Julio Frenk, who noted the Trump administration is seeking $1 billion from the university over antisemitism allegations primarily related to a protest encampment on UCLA’s campus in 2024. 

    Dive Insight:

    In their message, UCLA Provost Darnell Hunt and Chief Financial Officer Stephen Agostini said the university was working with University of California system leaders to restore some $584 million in research funding cut off by the Trump administration. 

    “Our immediate priority is to sustain the research enterprise,” the officials said. “We are doing this via a thorough review process, grant by grant, alongside campus deans and faculty members.” 

    The funding cut followed U.S. Department of Justice allegations that UCLA broke civil rights law by not doing enough to protect Jewish and Israeli students from harassment. 

    At the center of those allegations was a spring 2024 pro-Palestinian protest encampment that UCLA leaders initially allowed to continue amid efforts to balance speech rights and campus safety. Less than a week later, they called police to break up the encampment. 

    The Justice Department has also launched a probe into whether the UC system discriminates against employees by allowing an antisemitic, hostile work environment. 

    Since Columbia University agreed to pay the federal government $221 million to settle similar allegations related to antisemitism, the Trump administration has reportedly sought payments from other high-profile colleges in its crosshairs. 

    Frenk recently panned the government’s effort to extract $1 billion from UCLA.

    “I want to be clear: The costs associated with this demand, if left to stand, would have far-reaching consequences,” Frenk said in a statement last week. “The impacts to society are very real, as it could threaten our ability to conduct life-saving and life-changing research. But the impacts to our university are just as real.”

    Last week, a federal judge ordered the National Science Foundation to restore grant funding potentially amounting to hundreds of millions of dollars. U.S. District Judge Rita Lin ruled that the cuts, made after the Justice Department announced its allegations, violated a prior court order in a lawsuit filed by UC researchers over mass grant terminations by the administration. 

    Even before the faceoff with the Trump administration, UCLA was shifting toward austerity as the wider UC system grappled with deficits. In fiscal 2024, UCLA posted an operating loss of $144.2 million, a sharp downturn from its positive operating income of $159.6 million the year before.

    Hunt and Agostini noted the university had already cut administrative unit budgets by 10%, started a hiring review process and curtailed travel spending. 

    The officials said that existing efforts to streamline and save money in the university’s operations have become a subject of “immediate and urgent focus” given the financial environment. 

    The IT reorganization is part of those efforts. The move involves consolidating teams distributed across UCLA’s campus. The goal is to “boost our cybersecurity readiness; ensure more equitable access to high-quality IT services; and free up resources to elevate teaching, research and innovation,” Hunt and Agostini said. 

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  • Offering student loan payment assistance a ‘no brainer,’ benefits manager says

    Offering student loan payment assistance a ‘no brainer,’ benefits manager says

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    SAN DIEGO — Applied Materials’ student loan repayment program for employees reaped such rewards that the company more than doubled its annual contribution after the first year, Tes Fernandez, director of U.S. benefits for the company said during a panel discussion at the annual conference for SHRM, formerly known as Society for Human Resource Management.

    In year one, the manufacturing company contributed $2,000 per employee in direct repayment of workers’ student loans. In the years that have followed, Applied Materials now pays out $4,800 per employee and uses the benefit as both a way to support generally newer hires, recent graduates and some underrepresented groups and as a recruiting tool.

    “They had to go up to the CFO and ask for extra millions of dollars to add this benefit. A year later, they more than doubled the benefit amount, not because the CFO got generous, but because they were seeing the results of the benefits,” Chris Rinko, VP and student debt and health and wellness benefits administration account executive at Fidelity Investments, said during the panel, which he moderated.

    When it comes to student loan debt assistance, employers have two choices, Rinko explained. They can either provide a direct payment to student loan servicers to help pay down employees’ loans, or they can elect to offer matching contributions in the 401(k) plans of workers who demonstrate they are making student loan payments.

    The direct payment method can be targeted to only apply to certain groups — those who earn less or those in a specific job, for example — and can have a set end date, Rinko said, while matching contributions are tied to a company’s overall 401(k) plan offering and can’t exclude any workers.

    Tracey Gannon, a senior benefits manager at eBay, said it was “kind of a no-brainer” for the e-commerce company to offer matching funds after the passage of the SECURE 2.0 Act. The law gave employers the ability to match employee contributions to certain student loan payments.

    “We felt that this was just such an easy first step,” Gannon said.

    The company already budgets for all employees to get the full matching contribution in their retirement plans and has a 96% participation rate, Gannon said. That meant the new offering wasn’t a big budget item for the company but could provide support to some employees in need.

    Similarly, offering a matching contribution seemed like “an easy win” for The Walt Disney Co. and its workers, said Marianne Lynch, a senior manager of executive benefits and hypercare for the company.

    “It’s a huge, huge benefit to reduce that burden” of student loan debt, Lynch said. At Disney, 97% of employees already receive the full 401(k) match, but for those who don’t, it’s a way not to miss out on the matching funds to which they’re already entitled, she added.

    “The only change here is you’re giving them another way to earn that match by paying their student debt,” Rinko said.

    At companies where most employees already receive the full matching contribution, some leaders may ask, “Why bother?” with a student loan repayment match, Rinko said.

    “The reason is, if it’s just 1% or 2%, if you can find a path for that small number, for those people who are usually in the greatest need to earn the match, why not?” Rinko said.

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  • Mark Scott says international students are “a down payment on the future”

    Mark Scott says international students are “a down payment on the future”

    Mark Scott was a major advocate for no overseas student cap last year. Picture: Jane Dempster

    University of Sydney vice-chancellor Mark Scott reaffirmed that all international students are welcome at his university during a meeting of student unions on Wednesday.

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