UT SYSTEM ADMINISTRATION VOLUNTARY SEPARATION INCENTIVE PROGRAM
Frequently Asked Questions
July 14, 2016
What is the purpose of the Voluntary Separation Incentive Program (VSIP)?
To reduce the number of full-time employees and control personnel and other budget expenditures.
If I accept the VSIP, when will my last day at UT System be?
AVoluntary Separation Date will be selected by UT System that will fall sometime between January 31, 2017 and May 31, 2017. 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 System will, at its sole discretion, select your actual Voluntary Separation Date. Then, we will let you know your date by September 23, 2016.
If I am offered the VSIP and do not accept it, will my position be eliminated during the planned “Reduction In Force” (RIF)?
We do not yet knowif 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 five requirements.
1.As of July 14, 2016, you must be a benefits-eligible employee or return-to-work retiree and meet one of the following criteria:
a.Employed at UT System Administration 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 System Administration 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.Obtained 15 years of service from UT System Administration (inclusive of any service at UT System institutions); or
d.Obtained one year of service from UT System Administration (inclusive of any service at UT System institutions) and be at least age 60 if in the Optional Retirement Program, or
e.Age plus years of UT service equal 80 or more;
2.You must not have submitted a formal, written notice of resignation from UT
System Administration that was accepted in writing by your supervisorby July14,
2016;
3. By August 19, 2016 at 5:00 p.m. CST, you must sign and return a Notice of Intent to Office of Employee Services (OES);
4. You must remain continuously employed by UT System Administration through the Voluntary Separation Date that UT System Administration selects for you; and
5. 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 System Administration employee for two years.
Was all my state service used to determine that I was eligible?
No. Only your state service from UT System Administration and UT System institutionswas used to determine VSIP eligibility.
What actions should I take if I want to voluntarily accept this offer?
☐Review the July 14 email you received from the Office of Employee Services (OES).
☐Complete and submit the Notice of Intent to OES as soon as possible, but no later than 5:00 p.m. CST on August 19, 2016.
NOTE:OES will accept Notices of Intentin the order received until the budgeted amount for the incentive is reached.
☐Watch theVSIP webinar on July 15 (or view a recording of it once posted by OES).
☐Consult with OES to determine your potential eligibility for retiree health insurance.
☐Consult with the Teacher Retirement System (TRS) or with your Optional Retirement Program (ORP) provider to determine your potential eligibility forand amount of retirement distributions.
☐Consult with a personal attorney and/or financial advisor of your choosing.
☐Before you return your Notice of Intent, discuss your preferred Voluntary Separation Date with your supervisor.
☐If you choose to return yourNotice of Intent by the August 19, 2016 deadline and you are accepted into the VSIP, OES will send you a Voluntary Separation Agreement approximately 30 calendar days before your Voluntary Separation Date. Return the Voluntary Separation Agreementto OES 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 System, may I back out?
Yes.Until you sign your Voluntary Separation Agreementand the 7 calendar-day period for you to revoke your agreement expires, you are not required to separate from UT System. 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 OES in any of the following ways, as long as you return it by the 5:00 p.m. CST deadline on August 19, 2016:
- Scan and email to
- Fax to (512) 499-4380
- Mail to:
The University of Texas System Administration
210 West 6th St., Suite B.140E
Austin, TX 78701
- Deliver in person between 8:00 a.m. and 5:00 p.m. CST to:
UT System Office of Employee Services
504 Lavaca Street, Suite 810
Austin, TX 78701
How do I return a signed Voluntary Separation Agreement?
You can return it to OES in any of the following ways, as long as you return it no later than 14 calendar days before your Voluntary Separation Date:
- Scan and email to
- Fax to (512) 499-4380
- Mail to:
The University of Texas System Administration
210 West 6th St., Suite B.140E
Austin, TX 78701
- Deliver in person between 8:00 a.m. and 5:00 p.m. CST to:
UT System Office of Employee Services
504 Lavaca Street, Suite 810
Austin, TX 78701
What happens if I complete the Voluntary Separation Agreementand then change my mind and decide I do not want to separate from employment?
You should immediately notify OES 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-dayperiod expires, your agreement cannot be revoked and you will be required to separate from UT System.
To revoke your agreement, please complete and return the Revocation Form to OES in any of the following ways:
- Scan and email to
- Fax to (512) 499-4380
- Mail to:
The University of Texas System Administration
210 West 6th St., Suite B.140E
Austin, TX 78701
- Deliver in personbetween 8:00 a.m. and 5:00 p.m. CST to:
UT System Office of Employee Services
504 Lavaca Street, Suite 810
Austin, TX 78701
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.
If I accept the VSIP and separate from UT System Administration, may I become a UT System Administration employee in the future?
Yes, but not until 2 years after your Voluntary Separation Date.
If I accept the VSIP and separate from UT System Administration, may I become a UT institution employee?
Yes. You may accept a position at any UT institution, but not System Administration, after your Voluntary Separation Date.
If I accept the VSIP, separate from UT System Administration, 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 System Administration employees.
How much is the incentive payment?
One lumpsum equal to six months of your annual salary, based upon your base salary as of July13, 2016.
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 System 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.
If I accept the VSIP and separate from UT System Administration, 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.
Will the Voluntary Separation Incentive Program be offered again?
There are no plans to offer another program in the future.
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