By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

The largest university in Western New York could save $18 million when 300 eligible employees take early-retirement incentives this year.

Roughly 200 University at Buffalo faculty and professional staff members plan to participate in the university's Voluntary Separation Incentive Program, said Scott Nostaja, UB senior vice president. Another 100 workers will take the state's Early Retirement Incentive for classified employees.

UB will realize $18 million in gross savings with the retirement of 300 employees. It will spend $5 million to implement the plan. Eligible faculty who retire would receive full pay for one semester, starting no later than fall 2011, and thereafter will receive a lump sum payment totaling 50 percent of their annual salary.

Fifty of the retirees are faculty members who will be replaced, Nostaja said. Some professional staff members will also be replaced.

UB announced the one-time incentive in April as a way to deal with state budget cuts. This year it will lose $19.5 million in state aid.

The university initially said it anticipated "a few hundred" people would take the buyout packages. Net savings of the plan are not yet known because some of the retirees will be replaced, Nostaja said.

UB employs some 10,000 workers, making it one of the largest employers in the region.