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Voluntary Separation Incentive Program Voluntary Separation Incentive Program

Voluntary Separation Incentive Program - PowerPoint Presentation

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Uploaded On 2018-10-06

Voluntary Separation Incentive Program - PPT Presentation

Presented by UWSuperior Human Resources Steve Marshall Gigi Koenig Effective dates of separation will be determined by the Chancellor in the best interest of the University Dates of separation will be as follows ID: 685722

2017 000 eligible employees 000 2017 employees eligible chancellor etf employee separation contributions staff applications amount final dean authorized

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Slide1

Voluntary Separation Incentive Program

Presented by: UW-Superior Human Resources Steve Marshall, Gigi KoenigSlide2

Effective dates of separation will be determined by the Chancellor in the best interest of the University. Dates of separation will be as follows:

For faculty and instructional academic staff: between 6/30/2017 and 1/12/18, unless authorized by the Chancellor because of exigent circumstances.For all other eligible appointment types: between 6/30/2017 and 8/31/2017, unless authorized by the Chancellor because of exigent circumstances. Slide3

Eligible employees must submit completed applications for consideration in the VSIP no later than April 14, 2017.VC’s, Dean of Students and the Dean of Academic Affairs will evaluate applications and provide recommendations to the Chancellor for final action.

Chancellor’s final decisions expected to be communicated to applicants by May 5, 2017. Effective voluntary separations begin 6/30/2017, unless authorized by the Chancellor because of exigent circumstances.Dates Slide4

Employee benefit amount is arrived by taking 50% of base pay, prorated for FTE.

Example: An employee at a full-time rate of $80,000 with a 75% position would be eligible for $30,000.Full-time base rate of $80,000 x 75%FTE = $60,000 x 50% = $30,000Benefit amount does not include:

Overloads

Winterim, summer service, summer session amounts

Overtime

Standby pay

Weekend, night, shift differentials, etc.

How to Determine Employee Benefit Amount Slide5

Adjusted Base Salary = $50,000 Differential + $ 200

Overtime pay + $ 650 _______________________________ Total Compensation = $50,850Total separation incentive amount = $25,000

Example-University Staff:Slide6

Contract Base Salary (adjusted for FTE) = $60,000

Overload + $ 1,500 Summer session + $ 3,200 _______________________________ Total Compensation = $64,700

Total separation incentive amount =

$30,000

Example-Faculty, Academic Staff and Limited Staff (FASL):Slide7

There are 3 methods for distribution:Cash lump sum payout

Contribution to an employees Health Saving Account (HSA)Contributions to an employee’s 403(b), 457(Wisconsin Deferred Compensation-WDC) or similar account An employee can select 1,2,or all 3 of these 3 options.

Payout MethodsSlide8

Employee may choose a cash payout of the separation incentive in a lump sum payment. Points to consider:

Cash payments will be taxedEmployees considering this option in full or part should consult with  a tax advisor or financial planner.

Option 1: Cash payoutSlide9

Employee may choose to use any of the pre-tax investment options the university offers.Health Savings Account (HSA)

(must have a HDHP)403(b) plan457 Wisconsin Deferred Compensation Plan (WDC)Must establish 403 or 457 plan(s) at least 2 months prior to contribution(s)Option 2 & 3: Contributions Slide10

Points to consider:Please keep all plan limits in mind.

403(b) Plan ($18,000 for 2017. Employees age 50 or over up to $24.000 a year. You may also be eligible for “catch-up” contributions of an additional $3,000, must work with payroll in advance to obtain approval)457(b) WDC ($18,000 for 2017. Employees age 50 or over up to $24.000 a year. You may also be eligible for “catch-up” contributions of an additional $3,000, must work with payroll in advance to obtain approval)HSA contributions limits for 2017:Individual = $3,400Family = $6,750HSA “catch-up” contribution for 55+ = $1,000

Option 2 & 3: ContributionsSlide11

Next steps:

Review your ETF Annual Statement of Benefits located in the “Portal” at my.wisconsin.edu. Your statement will reflect information through 1/1/12016. Statement through 1/1/2017 have not yet been published.Contact ETF at 877-533-5020, as soon as possible to request a retirement estimate. Contact HR to make an appointment if interested in the VSIP. HR staff are booking appointments and can arrange a time that works with your schedule. Slide12

ETF face to face and webinar meeting schedule for the northwest region:

http://etf.wi.gov/members/northwest.htm ETF video, face to face and webinar education:  http://etf.wi.gov/member_education.htm   

Additional Resources:Slide13

Eligible employees must submit completed applications for consideration in the VSIP no later than April 14, 2017.VC’s,

Dean of Students and Dean of Academic Affairs will evaluate applications and provide recommendations to the Chancellor for final action. Chancellor’s final decisions communicated to applicants by May 5, 2017. Effective voluntary separations begin as early as 6/30/2017, unless authorized by the Chancellor because of exigent circumstances.

Dates to Remember! Slide14

Eligible employees are advised and encouraged to contact a tax advisor, financial planner and/or attorney.

HR staff may be helpful in calculating amounts but cannot advise employees. Eligible employees must submit completed applications for consideration in the VSIP no later than April 14, 2017Contact ETF at 877-533-5020, as soon as possible to request a retirement estimate.

Final RemindersSlide15

Thank you for attending!

Questions?