The following message is from John W. Shumaker, UT President, on the
Voluntary Separation Incentive Plan

May 7, 2003

Dear Faculty and Staff:

When I asked for cost savings suggestions in February, I was looking for
creative ways to cushion the impact of upcoming budget reductions. One of
your most frequent suggestions urged us to provide an "incentive" that
would encourage those who planned to separate from UT in the near term to
do so now.  While this is a pro-active approach to achieving budget
reductions, it nonetheless is sure to hasten the departure of some of our
most knowledgeable and experienced faculty and staff whose loyalty and
dedication to the university will be greatly missed.

Over the past month, my staff and I have worked to craft a one-time plan
along the lines proposed in your cost savings suggestions. The initiative
is self-financed, meaning the dollars to fund the plan must come from
salary and benefits savings gained by keeping positions vacant. Over the
long-term, we estimate annual savings of $10 million or more are possible.

Governor Phil Bredesen and other state officials reviewed our proposal last
week, and I am pleased to share the details with you. Here's how it will
work. In general, employees with at least 20 years' continuous service with
the university will be eligible for a "Voluntary Separation Incentive
Payment." Individuals who choose to participate will receive a one-time
payment of $5,000, plus the longevity pay the employee would have received
if he or she had continued working during the 2003-04 fiscal year, less any
withholding required by law.

As noted, participation is voluntary. Both faculty and staff are eligible.
If you elect to take this offer, your last day of work will be no later
than June 30, 2003.

Your chancellors and vice presidents will inform you of specifics of the
plan very soon. We hope it helps us through this most difficult process of
cutting our budget.

Cordially,

John W. Shumaker
President