Eastern Washington University Voluntary Retirement Incentive Program
The University is offering a voluntary retirement incentive program for participants in the Department of Retirement System (PERS, TRS and LEOFF) plans to reduce salary costs and FTE usage. Employees meeting the eligibility requirements may apply for this incentive. However, participation is not an entitlement or a right automatically available to all persons who meet the eligibility criteria. The University will accept or decline applications based on budgetary needs and on the ability to maintain programs and services. Applications may be submitted no early than July 1, 2010 and no later than August 16, 2010. Employees will be notified of the acceptance or denial of their application no later than August 31, 2010.
ELIGIBILITY
The eligibility requirements for this incentive are:
· Participation in the Department of Retirement System (PERS, TRS, and LEOFF) plans
· Eligible for full, normal retirement for at least 12 months by July 1, 2010; and
· Have at least three (3) years of continuous, permanent service with EWU.
PLAN PROVISIONS
The provisions of this incentive program are:
· Incentives shall be used to meet a legitimate business need as identified by the President. EWU has discretion to only offer this incentive plan for positions identified by the President.
· The use of this plan is a tool of management to reduce salary costs and FTE usage. No employee has a right to an incentive offered through this program.
· Incentives may be offered only to employees meeting the minimum eligibility requirements as outlined in the state guidelines.
· The maximum separation payment allowable is $18,000. The cost of the separation payment must be recovered through expenditure savings.
· Employees who accept a retirement incentive option will be ineligible for unemployment compensation. EWU will obtain the employee’s signature indicating that he/she has been advised of this condition.
· Any employee accepting a retirement incentive payment who returns to state service within five years (as an employee or contractor) must repay the incentive. Exceptions to this provision are governed by the state guidelines.
· Acceptance of any incentive is entirely voluntary.
· Retirement incentive payments are lump sum and are subject to deductions for income tax, medical aid and social security tax, but are not considered income for retirement (average final compensation) purposes.
You are encouraged to learn about and consider the terms of this offer. To provide you the opportunity for consideration, the application period for the retirement incentive will be 45 calendar days, from July 1, 2010 to August 16, 2010.
An individual’s decision whether to apply for this voluntary retirement incentive program has no bearing on whether his/her position may be identified in the future for other involuntary leave, layoff or other restructuring.
FREQUENTLY ASKED QUESTIONS
1. Why is this Voluntary Retirement Incentive Program being offered?
The university is offering this program to reduce salary costs and FTE usage.
2. How is service calculated for purpose of determining eligibility for the incentive plans?
Eligibility for the Voluntary Retirement Incentive must meet the rules for normal retirement for your plan for at least 12 months prior for this incentive offer. Example: If normal retirement is age 65 with 5 or more years of service, you must be age 66 and have 6 or more years of service this year to be eligible.
3. What is the timeline for this offer?
Employees must submit an application to the Benefits Office no earlier than July 1, 2010 and no later than 5:00pm, August 16, 2010. If the application is approved, the retirement date must be effective no later than January 1, 2011.
4. How do I apply for this incentive program?
Submit your application to the Benefits Office no later than 5:00pm, August 16, 2010. The university will provide written notification of whether requests have been accepted or denied no later than 5:00pm on August 31, 2010.
5. If I participate in this incentive program, will I be eligible for unemployment compensation?
No. You will not be eligible for unemployment compensation if you retire under this plan.
6. If I accept the Retirement Incentive, can I return to work or get another job?
Any employee receiving a retirement incentive who returns to work for the State of Washington within five years as an employee or contractor must repay the incentive. Additionally, each retirement plan has specific limitations around reemployment. You can work for any other employer without restrictions.
7. What happens to my insurance if I leave employment?
Your employer provided health coverage will continue through the last day of the month in which employment ends.
Individuals separating from employment under this offer will be eligible to continue retiree coverage by self paying premiums.
The rates are available online: www.pebb.hca.wa.gov/by_rate.html
8. If I leave employment under the Voluntary Retirement Incentive program, what happens to my accrued leave?
For Classified staff, any unused vacation time will be paid to you on your final pay date. For Exempt staff, unused vacation time up to 480 hours will be paid to you on your final pay date.
Sick leave will be cashed out at 25%, and deposited into a medical spending account (VEBA).
Personal holiday cannot be cashed out; however, you may schedule to use it before you leave.
9. Is the incentive payment taxable?
Yes. The $18,000 is taxable to include deductions for income tax, medicare and social security tax .
10. Can an employee who retires under the Voluntary Retirement Incentive plan send the incentive payment to the Health Care Authority to pay for their continued health care costs?
Yes, the employee can send the full amount of the payment to HCA or the employee could elect to split the incentive payment amount, receiving a portion of the incentive in cash payment with the remainder deposited into an account at the Health Care Authority. The Health Care Authority would credit the cost of the employee’s health care premium against that account. The number of months of coverage would depend on the amount deposited, and the cost of the health care premium. The HCA will not accept a JV from the employer.
11. Under what authority is Eastern Washington University offering this plan?
EWU has received approval from the Office of Financial Management (OFM) to offer voluntary incentive programs under the Voluntary Separation, Retirement, and Downshifting Program and in accordance with the “Voluntary Separation, Retirement and Downshifting Incentive Program for State Employees, 2009-11 Biennium Guidelines.” EWU is only offering the Voluntary Retirement Incentive program.
12. Who should I contact if I have more questions about the incentive plan?
Call Jan Bliss the Plan Coordinator at (509) 359-2488 or email .
APPLICATION PROCESS
To review the Application online refer to: http://www.ewu.edu/x1931.xml . If you have questions call the Benefits Office at (509) 359-2488. Submit your application to the University’s Benefits Office no later than 5 pm, August 16, 2010. The University will provide written notification that requests have been accepted or denied no later than 5 pm on August 31, 2010.
INFORMATIONAL MEETINGS
Meetings regarding the voluntary retirement incentive programs will be held:
Date / Time / LocationJune 29, 2010 / 9:00am and 1:00pm / Hargreaves Room 121
July 13, 2010 / 1:00pm / Hargreaves Room 121
If you are unable to attend a scheduled informational meeting, please contact the Benefits Office to schedule an appointment.
6/22/2010