In anticipation of state funding cuts, the University’s Board of Regents approved a voluntary early retirement plan Friday for the institution’s faculty and staff.

Under the plan, the University will pay the employer portion of the employee’s health care plan for three years. After three years, employees can pay to continue health care coverage under the University’s insurance plan.

Employees must choose whether to participate in the early retirement program by June 2004.

More than 4,100 University faculty and staff are eligible for the incentive option. An employee must be 50 years old with at least 15 years of University service, be 55 with at least five years of service, or have 30 or more years of service before July 7.

The voluntary retirement incentive program is estimated to save the University between $14.1 million and $31.3 million annually, depending on how many employees choose the option.