Politics & Government

Atkins: Audit of Six-Figure MnSCU Retirement Payouts Needed

After his request for a hearing was denied by the House Higher Education Finance Committee was denied, Rep. Joe Atkins (DFL) has asked the Office of the Legislative Auditor to look into potentially "excessive" payouts.

District 39B Rep. Joe Atkins has asked the Office of the Legislative Auditor to look into the allegedly excessive, six-figure retirement payouts received by Minnesota State Colleges and Universities officials.

Atkins' call for an investigation is the result of a KSTP news report that aired earlier this month. According to data provided by KSTP, all 15 of the largest retirement payouts in the past two years to state employees have been to MnSCU officials.

Former President Cheryl Frank was among the highest earners, receiving a $153,361 payout when she retired in 2009. The single highest-paid official was James McCormick, a former MnSCU chancellor who earned $319,000 in unused sick pay, vacation time and severance when he retired.

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MnSCU officials defended the earnings to KSTP, saying they are part of the employees' contracts and are necessary to recruit and retain top talent. 

"The ability to cash out six-figure sums upon retirement appears to make MnSCU an outlier not merely compared to the private sector, but compared to other state agencies and departments as well,” Atkins wrote in a press release distributed on Tuesday afternoon.

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Atkins had originally appealed to the House Higher Education Finance Committee for an investigation, but was rebuffed by the committee chair, Rep. Bud Nornes (R), according to Atkins' press release. Atkins is a member of the finance committee.

Sen. Mike Parry (R) the chair of the Senate State Government Finance Committee, issued a press release saying he will hold a hearing, but hasn’t followed up with a date, Atkins wrote.

"I am not proposing a rush to judgment, nor am I faulting any individual MnSCU employee or official for bargaining strenuously for the best compensation package possible," Atkins said. "An audit will help determine the extent to which greater oversight, transparency and reforms are necessary."


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