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
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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?