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VRIOP

Voluntary Retirement Incentive Option Program

Submission of packet materials are from March 2 – April 1st, 2020

Purpose

The purpose of the Voluntary Retirement Incentive Options Program (VRIOP) is to provide early retirement incentives to employees of UW Oshkosh, as authorized by the Chancellor, and in order to achieve specific institutional objectives:

    • Reducing salary/wage and benefit costs due to funding challenges,
    • Redirecting positions to the Chancellor to focus on priorities, changing needs or strategic objectives,
    • Achieving other cost savings or efficiencies, and
    • Minimizing potential involuntary terminations.

The Retirement Incentive Options Program is not an entitlement or benefit, but rather is intended to supplement the range of budget management options available to the Chancellor.

The Chancellor has sole discretion over whether to offer a Retirement Incentive Options Program. Nothing in this program shall be construed to create an employee right or entitlement to a retirement incentive.

Eligibility Criteria

Who is eligible for participation?

UW Oshkosh active employees who:

    • Are currently appointed as a faculty member, academic staff member (instructional or non-instructional), unclassified limited appointee, or University continuous staff member; AND
    • Are at least 55 years of age prior to July 1, 2020; AND
    • Have at least 5 years of Wisconsin Retirement System (WRS) service with the State of Wisconsin, which includes UW public universities and state agencies. (Note service to Wisconsin local government, K-12, or UW organizations outside the public universities and state agencies do not apply,); AND
    • Are at least a 0.75 FTE employee

Who is NOT eligible for participation?

    • Employees who have given written notice of intent to retire or resign prior to January 15, 2020, are not eligible to participate in the Voluntary Retirement Incentive Options Program.
    • Student employees, University staff temporary, University project appointments, and University staff on an original probationary period are not eligible for participation in the Retirement Incentive Options Program.

Retirement dates (that is, the first day not at work) fall between July 1, and August 31, 2020. This means the last day you could be employed is August 30, 2020.

What is Being Offered to Those Who Participate?

A one-time separation payment at the time of retirement equal to 50% of the employee’s January 15, 2020, base salary. Base salary is defined as an employee’s permanent salary and excludes payments such as overload, overtime, weekend/shift/night differential, standby pay, interim and summer payments, increases due to an interim assignment or any other temporary payment above permanent base salary.

The employee is able to have the one-time separation payment distributed by one or a combination, of the following method(s). No combination of methods selected can exceed the 50% base salary calculation:

    • A lump-sum payment.
    • A contribution to an employee’s 403(b) or 457 plan for which the employee may be eligible at the time of separation payment. Contributions must be within established limits for plan selected.

Employee is responsible for consulting with the State of Wisconsin Employee Trust Funds division and his/her tax advisor as to retirement payments from the ETF and advice on potential tax consequences of choices of separation payment method(s).

Timeline & Important Dates

Program Process Diagram 

 

December 18, 2019, 1:00pm
Sage 1232, Oshkosh campus
Employee Informational Session during HR Connections
Watch Live Stream Here
This session will be recorded for future viewing.
January 15, 2020, 4:30pmEmployee deadline to indicate interest in VRIOP
February 17-20, 2020Employees attend group educational sessions where personalized packets will be provided
March 2 – April 1, 2020Employee submits Separation Agreement and all required documents to Human Resources, Dempsey 328, Oshkosh campus. Chancellor will approve agreements upon submission and Human Resources tracks 45 calendar day rescind period on a rolling basis.
April 1, 2020, 4:30pmDeadline for Employee to submit Separation Agreement and all required documents to Human Resources, Dempsey 328, Oshkosh campus.
May 29, 2020Human Resources notifies employees of final decision no later than May 29, 2020.
Required Documents for Final Submission

Employee Steps to Completion (link coming soon)

    • Separation Agreement (personalized) – provided during group educational sessions (with salary reduction agreement if applicable)
    • Earned Paid Leave Payout and Flexible Spending Account Options (with salary reduction agreement and/or HSA Change form if applicable)
    • Retirement Letter indicating last day employed and supervisor signature acknowledging retirement and any leave usage

Supervisor is to complete the Personnel Transaction Form (PTF), obtain all signatures, and submit to Human Resources immediately upon receipt of the employee’s retirement letter. Indicate in the Comments section the employee is retiring via the Voluntary Retirement Incentive Option Program.

 

Employee: Return ALL documents together to Human Resources, Dempsey 328, Oshkosh campus, no later than April 1, 2020 by 4:30pm

    • Separation Agreement (with salary reduction agreement if applicable)
    • Earned Paid Leave Payout and Flexible Spending Account Options (with salary reduction agreement and/or HSA Change form if applicable)
    • Retirement Letter indicating last day employed (with supervisor signature on letter acknowledging retirement and any leave usage)
FAQ's

Are employees paid via a grant eligible to participate?

Yes. Regardless of what funding string your salary is paid from, if you meet the eligibility criteria, you would be eligible to participate.


How is my banked leave/ALRA processed?

If no banked leave/ALRA is used directly prior to the retirement date, the banked leave/ALRA payments will be paid via a central account and the department would not be impacted.

If a supervisor agrees that the employee can extend their time on payroll by utilizing any banked leave/ALRA after their last physical day working on campus, the employee’s departmental unit is responsible for any lump sum payment.

NOTE: This only applies to banked leave/ALRA. The department is directly responsible for any vacation/personal holiday/legal holiday lump sum payments.


When and how is the retirement incentive payment processed?

The incentive payment processed separate from the normal payroll. The funds will be distributed via the option you choose (check or deposit into a pre-tax account). You will indicate your preference via the Separation Agreement.


When does my health insurance end as an active employee?

Your coverage as an active employee will end the month of your last day of employment. For example, if your last day of employment is 7/23/2020, your active coverage would be through 7/31/2020. If your last day of employment is 8/2/2020, your active coverage would be through 8/31/2020.


Can I change my health plan when I retire?

You will go into retirement with the health plan that was active when you retired.

Medicare Eligible

  • You may change your health plan only if you and/or your spouse are Medicare A and B
    eligible at the time of retirement. This requires a retiree paper application to be
    completed along with an ETF Medicare Eligibility Statement.
  • If you or your spouse are already enrolled in Medicare B at the time of retirement you
    will not be able to change your health plan until the annual benefit open enrollment
    period or if you have some other qualifying event that allows this change (ex: moving to
    a new service area).

Other

  • The only time you can switch health plans is during the annual benefit open enrollment
    period or if you have a qualifying event that allows this change (ex. moving to a new
    service area).

Can I change from family to single coverage for health insurance at the time of retirement?

Yes, you must contact Employee Trust Finds within 30 days of last day employed. You may complete the retiree health application prior to retirement. Note that if you change to single coverage your family will not be eligible to use your sick leave credits upon your death.


What if I wish to preserve my sick leave credits and don’t have the health insurance through UWO?

You may enroll for coverage in the IYC Access Health Plan 30 days prior to the effective date of retiree benefits to preserve your credits. At the time of retirement you may elect to escrow your sick leave. If your coverage is found to be comparable coverage by ETF, you then can cancel your enrollment in the IYC Access Health Plan. For example, if your last day employed is July 20, 2020, you must enroll in the IYC Access Health Plan with an effective date of July 1, 2020 (30 days prior to retiree benefit effective date). You then may elect to escrow your sick leave, and, if the other coverage is deemed comparable by ETF, cancel the IYC Access Health Plan. You will want to be sure to complete all the steps prior to your last day employed to ensure all is approved prior to retirement to ensure you can cancel your coverage when desired.


How do I set-up a Tax Sheltered Annuity Account (TSA) or Wisconsin Deferred Compensation Account (WDC)?

TSA Quick Guide

  • If you enroll directly with the vendor you will need to complete a salary reduction agreement
    included in the Quick Guide and turn into HR.
  • If you enroll via the EZ Enrollment Form you do not need to complete a salary reduction
    agreement.

WDC Plan Highlights  -Scroll to the bottom of the form on how to enroll. Your enrollment will be downloaded and therefore does not require a salary reduction agreement.


Can I direct my separation incentive payout to outside vendors for Tax Sheltered Annuity’s?

No, we can only distribute your payout to UW Tax Sheltered Annuity’s


Can I elect my separation incentive payout to contribute to a Flex Spending Account?

No, you are not able to utilize your payout for a Flex Spending Account.


Can my supervisor reject my request to rescind if I submitted the request within 45 days of HR receipt of my paperwork?

No, your retirement will not be binding if you rescind within 45 days of HR receipt of your paperwork.


What happens if I receive a permanent increase in base pay by January 15, 2020?

Your payout will be recalculated based on your base pay as of January 15, 2020.


When is my monthly annuity paid?

Monthly annuities are paid on the first of the month. Employee Trust Funds will pro-rate your first check based on your retirement date.


I would like to buy back service because I took a separation benefit and returned to WRS employment. How do I start the process?

Contact Employee Trust Funds at 1-877-533-5020.


Who can I list as my beneficiary?

Here is a link for the Beneficiary Designation Form  You can refer to the options listed on page 3. We recommend you contact ETF if you have any questions. The form should be sent directly to ETF on the address listed on the form.


Can we name someone other than spouse for the named joint survivor?

Yes, but the spouse would need to waive their rights by signing-off on the Retirement Benefit Estimate
and Application. Please refer to the ETF Choose an Annuity brochure for details on age limitations.

  Phone:  (920) 424-1166

  Fax: (920) 424- 2021

  Email: hroffice@uwosh.edu

Monday - Friday 7:45AM - 4:30PM

  Dempsey Hall 328
800 Algoma Blvd. 
Oshkosh, WI 54901