Staff Retirement Incentive Program

PURPOSE OF THE PROGRAM
To help the University of Puget Sound (the “University”) more proactively plan for staff transitions and promote the University’s long-term financial resilience, the University has elected to provide a Staff Retirement Incentive Program (the “Program” or “SRIP”). The SRIP is a one-time opportunity for eligible staff members to voluntarily retire and end employment as of June 30, 2023, in exchange for a special incentive package. Participation in the Program is strictly voluntary.
SUMMARY OF PROGRAM
The essential terms of the Program are set forth below:
1. Eligibility.
  Regular (non-temporary) staff members who meet the age and service requirements set forth below are eligible to participate in the SRIP, unless otherwise excluded:
  1. Age. A staff member must be age 59.5 or older by June 30, 2023;
  2. Service. A staff member must have at least 10.5 years of service as a regular (non-temporary) employee with the University as of June 30, 2023. Service is measured from the most recent date of hire through June 30, 2023. For any staff member who had a break in service, only the years since their most recent hire date will be considered. Job changes such as promotions, transfers, and competitive recruitments do not affect the most recent hire date, as long as all service since that hire has been continuous and in regular (not temporary) positions.
    
    This Program excludes staff members who hold the position of vice president or associate vice president, staff members who are designated as executives for purposes of the University’s salary plan, and staff members who hold an underlying tenured faculty position.
2. Retirement/End of Employment.
  Under the Program, in consideration for the incentive payments offered, an eligible staff member agrees to end employment with the University as of June 30, 2023.
3. Incentive Package.
  Eligible staff members who apply for the Program and are accepted by the University, and who sign the requisite agreements and releases described below will receive the following incentive package:
  1. An Incentive Retirement Payment. A lump sum Incentive Retirement Payment of 6 months’ base pay up to a maximum of $50,000. For purposes of this program, for exempt staff members, base pay is defined as the staff member’s 2023 annualized salary, not including any temporary assignment pay. For purposes of this program, for nonexempt staff members paid hourly, base pay is defined as the staff member’s hourly pay rate multiplied by their full-time equivalency (FTE) multiplied by 2080 hours. Base pay for all eligible staff members will not include out-of-class or temporary assignment pay, overtime pay, or shift differential pay. This payment is taxable and subject to applicable withholding.
  2. A Supplemental Incentive Payment. An additional Supplemental Incentive Payment of $4,398, also payable in a lump sum, based on the cost of the employee-only medical premium for the University’s medical plan for a period of 6 months ($733 month x 6) is taxable, and is subject to applicable withholding. This amount can be utilized for future medical premiums, but is unrestricted and can be utilized for any purpose the staff member wishes.
PROGRAM APPLICATION AND APPROVAL PROCESS
1. Step 1. Participation – Requires the Timely Execution of Two Documents by April 14, 2023.
  An eligible staff member must timely sign and return two documents in order to participate in the Program: the attached Participation Agreement (Exhibit A) and the attached Release (Exhibit B). Both documents must be signed, returned and received by the University no later than 5 p.m. on April 14, 2023, by hand-delivery, certified mail, or email.
  
  The agreement to retire and end employment on June 30, 2023, is irrevocable by the staff member once the Participation Agreement is signed and returned, but is subject to acceptance by the University. If the University accepts the staff member’s Participation Agreement, the staff member will be eligible to receive the incentive package. However, in order to receive the incentive package, the staff member must sign and return the first Release (Exhibit B) by 5 p.m. on April 14, 2023, and the second Release (Exhibit C) on or after June 30, 2023.
2. Step 2. University Acceptance of Participation by April 26, 2023.
  The University will notify eligible staff members of acceptance of their Participation Agreement on or before April 26, 2023.
3. Step 3. Retirement and End of Employment on June 30, 2023.
  Staff members who are notified of the acceptance of their Participation Agreement will end their employment with the University on June 30, 2023.
4. Step 4. Execution of a Second Release and Receipt of Incentive Payments – June 30, 2023 through July 8, 2023.
  In order to receive the incentive payments, the staff member must sign and return a second Release (Exhibit C) on or after June 30, 2023. This second Release must be signed, returned to and received by the University during the time period June 30, 2023, through July 8, 2023. If the staff member’s Participation Agreement has been accepted by the University and the staff member fails to timely sign and return the required second Release, they will not receive the Program payments, but their last day of employment will remain June 30, 2023.
NOTICES AND PROGRAM DOCUMENTS
Any document, notice or Release required to be sent to the University under this Program shall be hand-delivered to the Office of Human Resources, or sent by certified mail or email (with high importance) to the following address:
Office: Howarth 016

Mail: ATTN: SRIP Participation Agreement Reviewer
Office of Human Resources
University of Puget Sound
1500 N. Warner St., #1064
Tacoma, WA 98416-1064

Email: srip@pugetsound.edu
SUBJ: SRIP Participation Agreement
ADDITIONAL DETAILS OF THE PROGRAM
1. Factors to be Considered in Reviewing Applications
  Factors to be considered by the University in evaluating an eligible staff member’s Participation Agreement for the Program will include, but are not necessarily limited to, the following:
  - University operational and staffing requirements;
  - the needs of the division/department/program, including the ability of the division/department/program to cover assignments; and
  - other applicable divisional, departmental, and University financial and operational considerations.
    Although there are no set limits on who or how many staff members will be allowed to participate in the Program, the University reserves the right to limit participants at the discretion of the Executive Vice President and Chief Financial Officer.
    
    A staff member who applies for the Program will receive one point for each year of age and an additional point for each year of service. When deciding between similarly situated staff members, the University will first accept the voluntary retirement of the staff member with the highest number of points and work down the point totals until determining that the business necessity or financial need is satisfied. Eligibility to participate is also limited by the University’s right to reject participation in the Program.
2. Decisional Unit
  The decisional unit utilized for this Program is all regular (non-temporary) staff of the University who meet the eligibility criteria, with the following exclusions:
  - Staff members who are vice presidents or associate vice presidents; and
  - Staff members who are designated as executives for purposes of the University’s salary plan; and
  - Staff members who hold an underlying tenured faculty appointment.
    
    If you have questions about your age and service as it relates to eligibility, please email srip@pugetsound.edu.
LOSS OF ELIGIBILITY
An eligible staff member will lose the right and ability to receive benefits under this Program for one or more of the following reasons:
1. The staff member does not sign and return both the Participation Agreement and the Release (Exhibit B) by April 14, 2023;
2. The staff member is terminated by the University for misconduct or unsatisfactory performance, including for a violation of the University’s policies;
3. The staff member otherwise ends employment before the scheduled end date of June 30, 2023; and/or
4. The staff member dies before the date that Program benefits are distributed.
  Once the staff member’s Participation Agreement has been accepted by the University, their last date of employment is June 30, 2023. However, in order to receive the Program incentive payments, the staff member must timely sign and return a second Release (Exhibit C) on or after June 30, 2023, and return the Release to the University during the period June 30, 2023, through July 8, 2023. If the staff member’s Participation Agreement is accepted by the University and the staff member does not sign and return the second Release by July 8, 2023, their last date of employment will remain June 30, 2023, but the staff member will not receive any Program incentive payments.
SUMMARY OF APPLICABLE TIME PERIODS
An eligible staff member must accept the offer to participate by signing both the Participation Agreement (Exhibit A) and the Release (Exhibit B), and by returning the signed agreements by April 14, 2023. The agreement to retire and end employment on June 30, 2023, is irrevocable by the staff member once the Participation Agreement is signed and returned to the University, but is subject to acceptance by the University. The University will notify the staff member of acceptance or rejection of their voluntary retirement by April 26, 2023. If a staff member has been notified of acceptance into the Program, their last day of employment will be June 30, 2023, and they must timely sign and return a second Release (Exhibit C), on or after June 30, 2023, in order to receive the incentive payments. A signed second Release must be received by the University during the time period of June 30, 2023 through July 8, 2023. Upon receipt, the staff member will receive the lump sum incentive payments on the next regular payroll cycle of the University, i.e., July 14, 2023, or July 31, 2023.
BENEFITS PROVIDED: INCENTIVE RETIREMENT PAYMENT AND INCENTIVE SUPPLEMENTAL PAYMENT
Once the staff member’s Participation Agreement is accepted, and the staff member signs and returns the requisite releases by the applicable deadlines, they are eligible to receive a single lump sum incentive payment, subject to withholding, that is comprised of: (i) An Incentive Retirement Payment of 6 months’ base pay up to a maximum of $50,000; and (ii) a Supplemental Incentive Payment of $4,398, which is based on the premium for active employee-only coverage in the University’s medical plan for a period of 6 months ($733 x 6). In connection with the staff member’s end of employment, they will receive a COBRA notice and election form, and they will be responsible for any premium payments if they timely elect COBRA coverage. However, there is no requirement that the staff member elect COBRA coverage, or that this Supplemental Incentive Payment be utilized for medical, dental, or vision coverage. The Supplemental Incentive Payment can be utilized for any purpose.

The payments will be issued as a one-time lump sum amount minus applicable taxes (e.g., federal income tax, FICA, etc.). No deductions will be taken for flexible spending accounts, the University of Puget Sound’s 403(b) Plan or 457(b) Plan, and voluntary benefits such as medical/ dental/ vision/ life insurance premiums, from these payments. These payments will not be considered compensation for purposes of any employee benefit pension or welfare plan sponsored or maintained by the University. The payments may not be directed as contributions to the University’s retirement plan. The payments may not be distributed through any alternative form.
CLAIMS AND DISPUTES; MANDATORY ADMINISTRATIVE REVIEW AND ARBITRATION
This Program is a voluntary incentive program not subject to ERISA, as it is a one-time payment, paid from the University’s general assets, without an ongoing administrative scheme. It also is intended to meet the requirements for a voluntary early retirement incentive agreement and a voluntary exit incentive program in accordance with the Age Discrimination in Employment Act, as amended. This Program is, however, subject to mandatory administrative review process and mandatory arbitration. Any dispute or claim must be filed with the SRIP Claims Administrator within 180 days of June 30, 2023. Any such filed claim or dispute should include all reasons that the staff member is disputing the actions of the University under this Program and the legal basis for the staff member’s position. The dispute or claim will be reviewed by the SRIP Claims Administrator and a decision generally will be rendered within 90 days of receipt of the staff member’s claim, and the SRIP Claims Administrator will notify the staff member in writing if any extension is necessary. The SRIP Claims Administrator will have access to all relevant information from the staff member, the Office of Human Resources, and/or other University records as needed.

If the staff member is dissatisfied with the SRIP Claims Administrator’s determination, they must file a written appeal within 180 days of the SRIP Claims Administrator’s decision. The appeal will be reviewed by an Appeals Committee appointed by the University. The Appeals Committee generally will render a written decision within 90 days of the filing of the staff member’s appeal, and will notify the staff member in writing if any extension is necessary. The Appeals Committee has discretionary authority to decide all issues of fact or law.

If the staff member is dissatisfied with the decision on appeal, they must request mandatory arbitration with JDR, Seattle, Washington, within 90 days of the opinion on appeal. The rules of JDR, Seattle, will govern the selection of the arbitrator and the arbitration proceeding, except as provided for herein. The University shall pay the costs and fees of the arbitrator. Each side shall bear their own costs and attorney fees incurred in the arbitration, unless prohibited by applicable law. Mandatory arbitration is the exclusive remedy to challenge any decision on appeal and, by participating in the Program, the staff member waives any right to file a civil lawsuit or to have a jury trial, but nothing in this agreement prohibits the staff member from filing a claim or charge with the National Labor Relations Board or from filing an administrative charge or complaint of discrimination or harassment with either the Equal Employment Opportunity Commission or any state or local equal employment opportunity agency, or from seeking injunctive relief (preliminary or permanent) available under applicable laws for the purposes of the enforcement of this Program. Any dispute or claim relating to the Program or to any agreement related to the Program shall be brought individually, and the staff member shall not join such claim with claims of any other person or entity, or bring, join or participate in a class or collective action against the University. Venue for any arbitration is Seattle, Washington and the applicable law is that of Washington State. Any claim, appeal, or notice of arbitration must be emailed or mailed to the following address:

Mail: ATTN: SRIP Claims Administrator
Office of Human Resources
University of Puget Sound
1500 N. Warner St., #1064
Tacoma, WA 98416-1064

Email: srip@pugetsound.edu
SUBJ: SRIP Claim/Appeal
INFORMATIONAL MEETINGS
Any eligible staff member who is considering participating in the Program is encouraged to attend an informational meeting. The University will provide a schedule of any informational meetings.
MISCELLANEOUS
This Program is intended to comply with Section 409A of the Internal Revenue Code as either an exempt window benefit or the payment of benefits that meets the short-term deferral requirements of Section 409A. The Program is also intended to be a voluntary early retirement incentive agreement and a voluntary exit incentive program within the meaning of the Age Discrimination in Employment Act. The decisional unit and the eligibility criteria are set forth under the Eligibility section above.

No provisions of this Program may be modified, altered, waived or amended, unless in writing and signed by both the University and the staff member. Oral statements by either party cannot modify the terms of the Program, the Participation Agreement or the Release.

If an eligible staff member elects to and is approved to participate in the Program, but dies or is separated before payment is made, no payment will be made to the staff member, their spouse or domestic partner, their children, their heirs or to their estate pursuant to this Program.
RELATED STATUTES, REGULATIONS, AND POLICIES
- Age Discrimination in Employment Act (ADEA)
- Employee Retirement Income Security Act (ERISA)
- Staff Employment Policies
- University Code of Conduct

Program Owners: Office of Human Resources
Date Adopted by the Board of Trustees: February 24, 2023

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