Retirement Incentive Programs

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Kansas State  University

Has your university initiated an early retirement incentive program, if so, please describe employee eligibility criteria.  Additionally, please summarize your overall objective of implementing the program.  Examples: Salary savings, Reduction of FTE, Reallocation of FTE and salary.

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University of Kansas Response:

Below is a memorandum to the campus that summarizes the program:

Subject: FW: Voluntary Separation Incentive Program for Lawrence and Edwards Campus

The link is  http://www.humanresources.ku.edu/vsip/

From:  On Behalf Of Provost, University of Kansas

Sent: Monday, April 16, 2012 2:46 PM

To: kulfs-l - KU Lawrence Faculty and Staff

Subject: Voluntary Separation Incentive Program for Lawrence and Edwards Campus

Dear Faculty and Staff,

As part of the University’s continuing efforts to operate more efficiently and prioritize funding, we are

adopting a Voluntary Separation Incentive Program (VSIP). The program is available to eligible KULawrence

and Edwards campus employees.

The VSIP is intended to prioritize our funding towards investment in the goals and strategies identified by

the KU community in Bold Aspirations, our strategic plan. It is an incentive program that will provide a

lump-sum cash payment equal to 100 percent of a faculty or staff member’s annual base salary as of May 15,

2012 up to a maximum gross amount of $100,000, less required payroll deductions. Deductions include

applicable federal and state taxes and any other legally required deductions. Base Salary is the annual

budgeted salary for the faculty or staff member not including summer sessions, overloads or other one-time

payments, professorships, supplements, research or external funding, endowment income, or any other

administrative payments.

Employees who participate in VSIP must separate no earlier than July 24, 2012 and no later than December

31, 2012. Employees are not eligible for rehire at the University of Kansas or KU Medical Center for 12

months following their separation.

The VSIP is intended primarily for eligible faculty and staff in state-funded positions. However, eligible

faculty and staff in positions funded from other sources may be considered if participation meets KU’s

strategic goals. Each application will be reviewed individually. The intention is to allow as many eligible

faculty and staff as possible to participate, but each approval will be granted based upon whether there is a

benefit to KU.

A complete list of eligibility guidelines is below and in guidelines posted at www.hr.ku.edu/vsip. The

guidelines also include complete program information, including application procedure. All forms and a list

of Frequently Asked Questions are available online.

The application period begins Monday, April 16, 2012, and ends on Tuesday, May 15, 2012.

This is an important decision, and I encourage eligible faculty and staff to consider their situation

carefully. Contact your HR staff with questions, and consult with an attorney and financial or tax advisor.

Eligibility guidelines

KU faculty, unclassified academic staff, and unclassified professional staff are “eligible” if they:

1) Are a faculty or unclassified professional staff member;

2) Have 85 points under KPERS or are 62 years of age or older at the Date of Separation;

3) Have completed at least ten (10) years of service in a benefits-eligible position at a Kansas Board of

Regents institution or with the Board of Regents office at the Date of Separation; and

4) Are not otherwise ineligible, as set forth below.

KU university support staff are “eligible” if they:

1) Are a university support staff member;

2) Have 85 points under KPERS or are 62 years of age or older at the Date of Separation;

3) Have completed at least ten (10) years of service in a benefits-eligible position at a Kansas Board of

Regents institution or with the Board of Regents office at the Date of Separation; and

4) Are not otherwise ineligible, as set forth below.

The following employee groups are ineligible:

1) Faculty and staff already on a phased retirement agreement

2) Current KU retirees who have been rehired at KU

3) Faculty and staff on approved long-term disability