THE UNIVERSITY OF TEXAS AT TYLER VOLUNTARY SEPARATION INCENTIVE PROGRAM

Transcription

1 Frequently Asked Questions THE UNIVERSITY OF TEXAS AT TYLER VOLUNTARY SEPARATION INCENTIVE PROGRAM What is the purpose of the Voluntary Separation Incentive Program (VSIP)? To better control institutional budget expenditures. If I accept the VSIP, when will my last day at UT Tyler be? A Voluntary Separation Date will be selected by UT Tyler that will fall sometime between December 31, 2017 and May 31, We encourage you to indicate a preferred separation date on your Notice of Intent to Sign a Voluntary Separation Agreement ( Notice of Intent ) form and to discuss your preferred date with your supervisor. However, UT Tyler will, at its sole discretion, select your actual Voluntary Separation Date. Then, we will let you know your date by December 1, If I am offered the VSIP and do not accept it, will my position be eliminated due to a Reduction In Force (RIF)? We do not yet know if a RIF will be needed at all. For that reason, we do not know which positions, if any; will be eliminated after the VSIP ends. But if you decide not to participate in the VSIP, your decision will not be held against you when we study the need for (and extent of) a RIF. What criteria do I need to meet to be eligible for the VSIP? You must satisfy four requirements. 1. As of September 1, 2017, full-time benefits eligible staff or tenured faculty member must meet one of the following eligibility criteria: a. Employed at UT Tyler or a UT System institution before September 1, 2003 and be at least age 55 with 5 years of UT service; or b. Employed at UT Tyler or a UT System institution on or after September 1, 2003 and be at least age 65 with 10 years of UT service; or c. If in the Optional Retirement Program, obtained one year of service from UT Tyler (inclusive of any service at UT System institutions) and be at least age 60, or d. Rule of 80 - Age plus years of UT service equal 80 or more; 2. By November 1, 2017 at 5:00 p.m. CST, you must sign and return a Notice of Intent to Human Resources (HR); 3. You must remain continuously employed by UT Tyler through the Voluntary Separation Date that UT Tyler selects for you; and 4. 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

2 Will my prior state service be used to determine VSIP eligibility? No. Only your state service from UT Tyler and UT System institutions is used to determine VSIP eligibility. What actions should I take if I want to voluntarily accept this offer? o Attend or watch the VSIP webinar via zoom on September 1 (or view the recording once posted by HR). o Before you return your Notice of Intent, discuss your preferred Voluntary Separation Date with your supervisor. o Complete and submit the Notice of Intent to HR as soon as possible, but no later than 5:00 p.m. CST on November 1, NOTE: HR will accept Notices of Intent in the order received until the budgeted amount for the incentive is reached. o Consult with HR to determine your potential eligibility for retiree health insurance. o Consult with the Teacher Retirement System (TRS) or with your Optional Retirement Program (ORP) provider to determine your potential eligibility for and amount of retirement distributions. o Consult with a personal attorney and/or financial advisor of your choosing. o If you choose to return your Notice of Intent by the November 1, 2017 deadline and you are accepted into the VSIP, HR will send you a Voluntary Separation Agreement approximately 30 calendar days before your Voluntary Separation Date. o Return the Voluntary Separation Agreement to HR no later than 14 calendar days before your Voluntary Separation Date. I m not sure if I want to accept the VSIP. If I sign and return a Notice of Intent, but later decide I want to stay at UT Tyler, may I back out? Yes. Until you sign your Voluntary Separation Agreement and the 7 calendar-day period for you to revoke your agreement expires, you are not required to separate from UT Tyler. If you want to keep your options open to accept the VSIP until you make a final decision, we encourage you to complete and sign your Notice of Intent. How do I return a Notice of Intent? You can return it to HR in any of the following ways, as long as you return it by the 5:00 p.m. CDT deadline on November 1, 2017:

3 How do I return a signed Voluntary Separation Agreement? You can return it to HR in any of the following ways, as long as you return it no later than 14 calendar days before your Voluntary Separation Date: What happens if I complete the Voluntary Separation Agreement and then change my mind and decide I do not want to separate from employment? You should immediately notify HR that you are revoking your agreement. Under federal law, you can revoke the agreement within 7 calendar days after you sign the Voluntary Separation Agreement. After the 7 calendar-day period expires, your agreement cannot be revoked and you will be required to separate from UT Tyler. To revoke your agreement, please complete and return the Revocation Form to HR in any of the following ways: My VSA had a typo what should I do? Please notify Human Resources as soon as possible of this typo. A corrected agreement will then be sent to you promptly. I plan to accept the VSIP, but I do not want to retire under my retirement plan. Am I automatically retired if I accept the VSIP? No. Please consult with the Teacher Retirement System (TRS) or with your Optional Retirement Program (ORP) provider, as applicable, to learn more about your retirement eligibility and options.

4 If I accept the VSIP and separate from UT Tyler, may I become a UT Tyler employee in the future? Yes, but not until 2 years after your Voluntary Separation Date. If I accept the VSIP and separate from UT Tyler, may I become an employee at another UT Institution? Yes. You may accept a position at any UT institution, but not UT Tyler, after your Voluntary Separation Date. If I accept the VSIP, separate from UT Tyler, and want to work at another UT institution, will I receive an automatic reemployment preference there? No, unless a particular job posting creates an employment preference for former UT Tyler employees. How much is the incentive payment? One lump sum equal to three months of your annual salary, based upon your base salary as of September 1, The incentive payment is calculated using the 9 month base salary for tenured faculty and 12 month base salary for full-time staff. How is my base salary calculated? It is your annual salary, not including any additional amounts for longevity pay, hazardous duty pay or supplemental pay. Will the incentive payment be taxed? For withholding purposes, UT Tyler will treat your incentive payment as supplemental compensation unless you direct the withholding of additional amounts. For more specific tax advice, please consult with your personal tax advisor. Paragraph 4 of the VSA says that my Incentive Payment will be taxed as supplemental compensation. What does this mean? Does the word supplemental have tax consequences for me? As used in the VSA, supplemental compensation means supplemental wages. As to the rest of your question, we suggest that you consult with your financial advisor or personal attorney. If I sign my VSA and I die before my Voluntary Separation Date, will my Incentive Payment be paid to my spouse? No. If you die after the VSA is fully in effect (i.e., signed by you and Mr. O Donnell, and not revoked by the deadline to revoke), the Incentive Payment will be paid to your estate. Please consult with your financial advisor and personal attorney to determine whether the assets of your estate will subsequently go to your surviving spouse. If I sign my VSA and I die before my Voluntary Separation Date, will my accrued annual leave balance be paid to my spouse? No. If you die after the VSA is fully in effect (i.e., signed by you and Mr. O Donnell, and not revoked by the deadline to revoke), state law requires UT Tyler to pay your accrued leave

5 balance to your estate. Please consult with your financial advisor and personal attorney to determine whether the assets of your estate will subsequently go to your surviving spouse. If I accept the VSIP and separate from UT Tyler, when will I receive the incentive payment? No later than 30 working days after your Voluntary Separation Date. Will retirement contributions be deducted from my incentive payment? No. Can I decide to roll the incentive payment into my voluntary retirement plan? No. What if I have unused vacation time when I separate? The value of any unused and available vacation time will be paid to you as it would to any employee who separates from employment. The vacation payment is subject to tax withholding. Your unused and available vacation will not be paid if you transfer without a break in service to another UT institution or state agency. The time will transfer with you to your new employer. My Voluntary Separation Agreement (VSA) seems like it waives many of my rights to seek legal recourse, but it does not guarantee that UT Tyler will pay my remaining vacation leave balance when I separate. Will that balance be paid? If you have a vacation leave balance as of your separation date, UT Tyler will pay it to you, minus applicable tax withholding. In fact, UT Tyler is obligated to do this by state law. Also, nothing in your VSA waives this statutory right. Will my accrued vacation leave balance be paid to me after I leave under the VSIP? Or instead, does the Voluntary Separation Agreement (VSA) waive my right to that payout because it says the Incentive Payment is "UT Tyler s entire financial obligation to you under the Agreement"? UT Tyler will pay out VSIP employees accrued annual leave in the manner required by state law. This annual leave payout is separate from, and on top of, the VSIP Incentive Payment. My VSA does not guarantee that I will receive the lifetime insurance benefit [i.e., the Retired Employee Insurance referenced at even though I am eligible for it. Will I receive the benefit, or will I be waiving my rights to it if I sign the VSA? If, as of your separation date, you are eligible to enroll in the basic and optional insurance coverages available to retired UT Tyler employees, then you will remain eligible to enroll in them even if you sign a VSA. Will the Voluntary Separation Incentive Program be offered again? There are no plans to offer another program in the future.