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Voluntary Retirement Incentive Program

Voluntary Retirement Incentive Program. Voluntary Retirement Incentive Program . Goals : Optimize workforce alignment with student needs and university strategic plans Minimize disruption of classroom and learning environment, student services and career preparation

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Voluntary Retirement Incentive Program

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  1. Voluntary Retirement Incentive Program Modified: 3/26/10 - Final

  2. Voluntary Retirement Incentive Program Goals: • Optimize workforce alignment with student needs and university strategic plans • Minimize disruption of classroom and learning environment, student services and career preparation • Improve university cost structure • Implement a system approach reflecting the uniqueness of the PASSHE universities Modified: 3/26/10 - Final

  3. Modified: 3/24/10 - Final

  4. Modified: 3/24/10 - Final

  5. Voluntary Retirement Incentive Program General Program Guidelines • The Board of Governors approved a Voluntary Retirement Incentive Program at its March 19, 2010 meeting • The monetary incentives are based upon years of service and retirement eligibility for all employee groups • Participants will be required to sign a release and settlement agreement prepared by the PASSHE Office of Legal Counsel Modified: 3/26/10 - Final

  6. Voluntary Retirement Incentive Program General Guidelines (continued) • Collective bargaining agreement and management leave payout provisions must be adhered to, including: • Annual Leave • Holiday • Personal Leave • Sick Leave • Compensatory Leave • Employees are encouraged to participate in pre-retirement counseling • Payouts will be made based on current payroll practices Modified: 3/26/10 - Final

  7. Voluntary RetirementIncentive Program Eligible Employee Groups Include • Employees Represented by: • American Federation of State, County, and Municipal Employees (AFSCME) • State College and University Professional Association (SCUPA) • Security, Police, and Fire Professionals of America (SPFPA) • Office of Professional Employees International Union Healthcare Pennsylvania (OPEIU) • Pennsylvania Social Services Union (PSSU) • Management Modified: 3/26/10 - Final

  8. Voluntary Retirement Incentive Program Monetary Incentive 13 to 15 years of service*: 10% of annual base salary with a minimum of $6,000 and a maximum of $10,000 More than 15 years to 20 years of service*: 20% of annual base salary with a minimum of $10,000 and a maximum of $20,000 More than 20 years of service*: 30% of annual base salary with a minimum of $14,000 and a maximum of $30,000 • Years of Service, including purchased service, as of date of retirement. • Annual base salary is rate of pay for staff and does not include supplemental pay such as overtime, compensatory time, etc. • Employees will be paid in a lump sum minus appropriate deductions. • Employees must sign a release and settlement agreement. • Not all bargaining units are eligible for each tier * Refer to the specific voluntary separation program agreement for each respective union. Modified: 3/26/10 - Final

  9. Voluntary Retirement Incentive Program Eligibility as of Date of Retirement* • Active full-time permanent employee, and; • Age 60 or above, or if under age 60 , a minimum of 35 years of credited service and • Eligible for majority paid annuitant health care coverage. *Date of Retirement must be between June 18th and August 27th. Annuitant health care benefits are determined by the applicable collective bargaining agreement for represented employees and PASSHE policies for non-represented employees. Modified: 3/26/10 - Final

  10. Voluntary Retirement Incentive Program Timing Acceptance Period: March 31, 2010 through May 28, 2010 Separation Date: June 18, 2010 through August 27, 2010 Employees are encouraged to participate in the Pre-Retirement Counseling sessions to be offered at their university. Modified: 3/26/10 - Final

  11. Voluntary Retirement Incentive Program Key Resources • Chief Human Resource Officer • Benefits Coordinator • Union Officials Modified: 3/26/10 - Final

  12. Annuitant Health Plan Eligibility PEBTF covered (AFSCME): • With 25 years of service regardless of age; OR • At age 60 with at least 20 years of service, unless meet the criteria of the grandfathering provision of the CBA which grants eligibility with 15 years (Grandfathering criteria: as of June 30, 2008 had 15 years of service OR had 13 years of service and were within one year of age 60) Modified: 3/24/10 - Final

  13. Annuitant Health Plan Eligibility • PASSHE AHCP (Managers, Police, Nurses, SUA) • 25 years of service regardless of age • Age 60 with at least 20, 15, or 10 years of service dependent upon hire date: • Hired prior to July 1, 1997, need 10 years of service • Hired on or after July 1, 1997, need 15 years of service • Hired on or after July 1, 2004, need 20 years of service Modified: 3/24/10 - Final

  14. Benefit Changes Health Insurance • Loss of dental and vision coverage • Spouses and dependents covered as long as annuitant lives • Must take a monthly annuity payment to qualify • Cost for REHP(PEBTF) is 2% of active ending salary, to 3% October 1, 2010 (with future % increases) • Cost for AHCP(PASSHE) is 10% of premium cost at retirement, to 15% July 1, 2010 (with future % increases on same premium cost) Modified: 3/24/10 - Final

  15. Benefit Changes (cont.) Life Insurance • Loss of University paid life insurance • Conversion will be offered, but convert term life policy to whole life and cost is very high • Consider your need for life insurance Voluntary Benefit Programs • No continuation of LTD • Option to continue VGLIP for 2 years Modified: 3/24/10 - Final

  16. Leave Payments • 100% payout for Annual Leave, Personal Leave, Compensatory Leave, and Holiday Leave • % payout for sick leave dependent upon balance: • 0-100 days = 30% buy-out • 101-200 days = 40% buyout • 201-300 days = 50% buyout • Over 300, 100% buyout on days over 300 max of 13/15 • Leave payment can be tax sheltered through the Commonwealth’s Deferred Compensation (457) Plan through Great West Modified: 3/24/10 - Final

  17. Incentive Pay • Monetary incentive based on years of service as of the date of retirement • Years of service includes purchased service as of date of retirement • Paid with last check • Incentive payments are eligible to be tax sheltered through an existing TSA or by establishing one prior to payment Modified: 3/24/10 - Final

  18. Conversion Pay Liability Many long term employees (hired early 1980’s or before) have a “conversion pay liability” which is listed on pay statements, is recouped upon retirement. Amount is equal to one biweekly check at the time of the payroll conversion. Modified: 3/24/10 - Final

  19. Last Pay • Last pay normally received two weeks after your last day of work if you retire on a payday Friday will include: • Last biweekly paycheck less all applicable deductions such as taxes, retirement, health insurance, voluntary deductions, credit union, etc. • Leave buy-out less taxes only (unless sheltered) • Incentive pay less taxes only (unless sheltered) Modified: 3/24/10 - Final

  20. Last Day • Be sure to turn in keys, parking tag, and any other University property • Email considerations (notify people in your address book of email termination) • Delete/transfer to disc any personal information on your computer Modified: 3/24/10 - Final

  21. Points to Ponder • Aside from financial/benefit implications, for many of you this is more of an emotional decision; are you mentally prepared to retire? • Can you see yourself being retired or are you already thinking about a part-time job? • More than another year vs. less than another year? What were you planning? • Is the incentive money changing your plans? Modified: 3/24/10 - Final

  22. Points to Ponder (cont.) • Don’t let others influence your decision • Make an informed decision Modified: 3/24/10 - Final

  23. Upcoming Planning Seminars • Deferred Compensation Program • April 19 at 10 a.m. at North Hall Welcome Center • Retirement Strategies for Life • April 27 at 10 a.m. at North Hall Welcome Center • Social Security Pre-Retirement Planning • April 28 at 10 a.m. at North Hall Welcome Center • SERS Open Session • May 4 at 10 a.m. at North Hall Welcome Center Modified: 3/24/10 - Final

  24. New SERS Counselor Charlene Hearn from the Seneca office takes over as counselor for Butler County effective April 5, 2010. 800 633 5461 Ext. 3105 Open session on May 4 at 10 a.m. at North Hall Welcome Center. Modified: 3/24/10 - Final

  25. PSERS Contact Information Toll free number to request a PSERS estimate: 888 773 7748 PSERS representatives meet potential annuitants at the Intermediate Unit in Grove City. Modified: 3/24/10 - Final

  26. ARP One-on-One Sessions For those enrolled in the ARP (TIAA-CREF, VALIC, ING, or Fidelity): • Carol Balkey from TIAA-CREF here on May 13, need to request a Retirement Illustration prior to an appointment at 800 842 2776 • Contact me if other than TIAA-CREF to set up an appointment Modified: 3/24/10 - Final

  27. Next Steps • Attend pre-retirement counseling sessions • Contact SERS, PSERS, or your ARP provider • Meet with your university Chief Human Resource Officer or Benefit Coordinator • Purchase prior service, if applicable Modified: 3/26/10 - Final

  28. Voluntary Retirement Incentive Program Questions? Modified: 3/26/10 - Final

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