The University of Texas at Tyler Voluntary Separation Incentive - PowerPoint PPT Presentation

The University of Texas at Tyler Voluntary Separation Incentive Program (VSIP) Taylor Alvarez, Benefits Manager William O’Donnell, Vice President of Business Affairs

Voluntary Separation Incentive Program • Topics • Background • Description • Eligibility • Benefit • Eligibility for retirement income benefits • UT Select insurance coverage after employment • Unused leave after employment • Process

Background • Budgetary challenges in 2017-2018 school year • Working toward institutional efficiencies. • VSIP is next step in the process.

Description • Voluntary program. • Offers a one-time payment equal to 3 months salary . • The incentive payment is calculated using the 9 month base salary for tenured faculty and 12 month base salary for full-time staff. • Employee must separate between December 31, 2017 and May 31, 2018 . • May not return to work at The University of Texas at Tyler for two years.

Eligibility for VSIP As of September 1, 2017 , full-time benefits eligible staff or tenured faculty member must meet one of the following eligibility criteria: 1. Employed at The University of Texas at Tyler or a UT System institution before September 1, 2003 and be at least age 55 with 5 years of UT System service; or 2. Employed at The University of Texas at Tyler, UT System Administration or another UT System institution on or after September 1, 2003 and be at least age 65 with 10 years of UT System service; or 3. If in the Optional Retirement Program, obtained one year of service from The University of Texas at Tyler, UT System Administration, or another UT System institutions and be at least age 60; or 4. Rule of 80 - Age plus years of UT System service equal 80 or more.

Eligibility for VSIP …continued • By November 1, 2017 at 5:00 p.m. CST , you must sign and return a Notice of Intent to Sign a Voluntary Separation Agreement to Human Resources (HR); • You must remain continuously employed by The University of Texas at Tyler through a date UT Tyler Administration selects for you (your “Voluntary Separation Date”). Human Resources will notify you of your date by December 1, 2017 , and it will fall sometime between December 31, 2017 and May 31, 2018 ; and • You must execute a Voluntary Separation Agreement no later than 14 calendar days before your Voluntary Separation Date. Under that agreement, you will waive legal claims and agree not to become a UT Tyler employee for two years.

Benefit of VSIP • One lump-sum payment. • Amount is equal to 3 months of annual base salary as of September 1, 2017 . • Tenured Faculty – 9 month base salary • Full-time Staff – 12 month base salary • Subject to tax withholding. • Not considered compensation for retirement contributions. • Paid no more than 30 days after separation.

Eligibility for Retirement Income Benefits • Teacher Retirement System (TRS) • Request an Estimate of Benefits online or by telephone. • May take several weeks to receive. • Optional Retirement Program (ORP) • Contact ORP provider. • Social Security • Contact Social Security Administration (SSA).

Eligibility for UT Retiree Health Insurance Coverage • *Employed in a UT Tyler benefits-eligible position on or before August 31, 2003 and: • Age 55 with 5 years of credible service; or • Age and years of service equal 80; and • At least 3 years of UT service; and • UT is the last place of state employment; and • Retire under TRS, ORP or ERS. *Must have met the eligibility on 8/31/03, if separated after that date and later returned to work at UT Tyler.

Eligibility for UT Retiree Health Insurance Coverage …continued • Employed at UT Tyler in a benefits-eligible position on or after 9/1/2003 and: • Age 65 with 10 years of creditable service; or • Age and years of service equal 80; and • At least 10 years of UT service; and • UT Tyler is last place of state employment; and • Retire under TRS, ORP or ERS.

COBRA Coverage • Available to separating employees who are not eligible for retiree health insurance. • Can continue medical, dental and vision insurance. • Up to 18 months

Unused Leave After Employment • Vacation • Unused and available vacation. • Paid in one lump sum. • Subject to income tax withholding. • Sick Leave • Not available for payment. • Can be reinstated if return to State of Texas employment within 12 months of separation. • Can donate to the sick leave pool.

Unused Leave After Employment • Straight Compensatory Time • Unused Comp Time is not available for payment. • Overtime Compensatory Time • Unused overtime is paid to an employee upon separation given the employee is in a position eligible to accrue overtime.

Process • Discuss with your supervisor. • Submit Notice of Intent to Human Resources as soon as possible, but no later than 5:00 p.m. CST on November 1, 2017 . • Consult with Human Resources to discuss your personal situation and options. • Consult with TRS or ORP provider for retirement eligibility and estimate. • Consult with Social Security Administration regarding eligibility for SS benefits. • Consult with a personal attorney and/or financial advisor of your choosing.

Process …continued • If accepted into the program, Human Resources will notify you of your date by December 1, 2017 and send a Voluntary Separation Agreement approximately 30 calendar days before your Voluntary Separation Date. • Return the Voluntary Separation Agreement to Human Resources no later than 14 calendar days before your Voluntary Separation Date. • Have 7 calendar days from date of signature to revoke by completing the Revocation Form.

Appointments • Email talvarez@uttyler.edu • Call Benefits Manager at 903-566-7467

Resources • VSIP website • Teacher Retirement System www.trs.texas.gov • 1(800) 223-8778, M-F, 7a.m.-6p.m. CST • Optional Retirement Program http://www.utsystem.edu/offices/employee-benefits/approved-providers • Social Security Administration https://www.ssa.gov/ • 1(800) 772-1213, M-F, 7 a.m.-7p.m. CST

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