Voluntary Separation Incentive Program (VSIP)
TO: All Faculty and Staff
FROM: Eric Algoe, Vice President for Finance and Support Services
SUBJECT: Voluntary Separation Incentive Program
Texas State is pleased to announce that the University will offer a Voluntary Separation Incentive Program (VSIP) for eligible faculty and staff next week as part of our planning efforts to respond to the unprecedented financial impacts associated with COVID-19.
Full-time faculty and staff who meet eligibility criteria based on the rule of 80 (age plus years of professional experience is at least 80) who have not already retired or announced an intent to retire or resign from the university prior to May 12, 2020.
What is the Incentive?
Employees will be invited to apply to receive an incentive payment of 50 percent of their annual base salary in exchange for an agreement to separate from employment prior to August 31, 2020. Each application will be reviewed in light of the University’s operational, accreditation, and fiscal needs. After review, those employees approved for participation will be provided a Voluntary Separation Agreement. The university reserves the right to approve or disapprove participation and some applications may not be accepted.
How does this Impact my Retirement Benefits?
The VSIP is an employment separation program unrelated to retirement benefits. An employee may be eligible to participate in the VSIP, and may not be eligible for retirement benefits under TRS or ORP. Employees planning to retire are responsible for determining retirement eligibility and arranging benefits.
How can I get more Information?
We will provide additional information, including the specific eligibility criteria and the timeline for the program, in a follow-up communication on Monday, May 18. This message is intended to give employees as much advance notice as possible that this plan is coming so that they can begin consulting with applicable tax, financial, and legal consultants about their specific situations. No University employee is authorized to provide personal tax, financial, or legal advice.
Although the specific program details are still under final development and legal review, the Human Resources Benefits Team is available for consultation at firstname.lastname@example.org or 512.245.2557.
TO: All Faculty and Staff
FROM: John E. McBride, Assistant Vice President for Human Resources
SUBJECT: Voluntary Separation Incentive Program (VSIP)
Texas State University announces a voluntary separation incentive program (VSIP) for eligible and approved faculty, academic administrators, and staff that end their employment by August 31, 2020. The separation program is inclusive of an incentive lump sum payment equal to fifty percent (50%) of an employee’s base salary.
To be eligible, an employee must meet the following requirements:
- be a full-time employee;
- meet the equivalent of the Employees Retirement System of Texas Rule of 80 (meaning the employee’s age plus years of professional experience total at least 80) by the last day of service prior to separation;
- has not previously retired, nor is on an early retirement or phased retirement plan; and
- has not previously provided written notice of retirement or resignation prior to May 12, 2020.
Please review the details of this program and documents available on Human Resources VSIP which include:
- VSIP Description
- VSIP Timeline
- Notice of Intent
- Withdrawal Form
These documents, along with other resources you may wish to review as part of your consideration, are on the Human Resources Retiree Page.
To be considered, you must complete a Notice of Intent (NOI), which shall serve as your application, no later than June 8, 2020.
Additional Information for Faculty
- Eligible positions include faculty, department chairs, school directors, and/or assistant/associate/college deans.
- Base salary is the nine-month faculty contract amount without summer pay, overloads, stipends, or any other form of remuneration.
- The Notice of Intent (NOI), must be submitted no later than June 8, 2020 to Faculty and Academic Resources at email@example.com.
Additional Information for Staff
- Base salary is annual salary amount without additional temporary assignment pay, stipends, overtime, State Longevity Pay, or any other form of remuneration.
- The Notice of Intent (NOI), must be submitted no later than June 8, 2020 to Human Resources at firstname.lastname@example.org.
All NOIs will be reviewed to ensure no adverse impacts to a department’s or the University’s operational, accreditation, and fiscal needs. The University reserves the right to approve or disapprove participation without providing justification for such decision. The terms of the program are outlined in the description documents and are not negotiable. Texas State will notify approved applicants via email by June 22, 2020.
Please complete the Rule of 80 Calculation Form, if you have questions as to whether you meet the Rule.
Please direct any questions about the VSIP for faculty to Faculty and Academic Resources at email@example.com.
Please direct any questions about the VSIP for staff to the HR Benefits Team at firstname.lastname@example.org.
Request Information on Your Retirement Eligibility (if needed)
|Timeline for the Texas State Voluntary Separation Incentive Program|
|May 12, 2020||
General announcement of VSIP to all faculty and staff
|May 18, 2020||
Announcement of program details and process to all faculty and staff
|June 8, 2020||
Deadline for eligible employees to submit Notice of Intent (NOI)
|June 15, 2020||
FAR/HR provides supporting information to Review Committee:
|June 15, 2020||
Review Committee receives NOI/Supporting Information
|June 22, 2020||
Review Committee Makes/Communicates Final Decisions
|June 25 - July 15, 2020||
FAR/HR distributes offers with Releases to selected employees. Approved employees have at least 30 days to consider.
|August 17, 2020 (by 5 p.m.)*||
Deadline to sign and submit Voluntary Separation Agreement for approved participants*
|August 31, 2020||Last day separation can be effective (may be sooner if desired)|
|October 15, 2020 (on or before this date)||
Payment of incentive
* VSIP approved participants desiring to teach as a per-course faculty in the fall semester (and are approved to do so by the department, college, and Academic Affairs) must execute the Voluntary Separation Agreement by July 23 for an effective separation date of July 31, 2020.