The University of Puget Sound (“University”) is offering a Staff Retirement Incentive Program (“Program”) to provide an opportunity for certain staff members to voluntarily retire and end their employment with the University as of June 30, 2023, in exchange for incentive retirement payments.  This list of frequently asked questions aims to address questions you may have. 

Please contact AVP for Human Resources and Chief People Officer Nancy Nieraeth (x3116, nnieraeth@pugetsound.edu) regarding any additional questions you have.

 

Overview

 

  1. What is the Staff Retirement Incentive Program?  How does it work?
    The University has approved a one-time offering of a Staff Retirement Incentive Program. The Program allows eligible staff members to receive an Incentive Retirement Payment and a Supplemental Incentive Payment if they elect to end employment through this Program on June 30, 2023. Participation is strictly voluntary and subject to acceptance by the University.
     
  2. Who is eligible?  And what is being offered?
    Regular (non-temporary) staff members are eligible if they meet the following criteria and are in a position that is not excluded:
    1. Age. Attainment of age 59.5, by June 30, 2023; and
    2. Service. Attainment of 10.5 years of service with the University as of June 30, 2023.
      Years of service are measured from a staff member’s most recent date of hire as a regular (non-temporary) employee through June 30, 2023.  For staff members who had a break in service, only the years since their most recent hire date will be considered. Job changes such as promotions and transfers do not effect the most recent hire date, as long as all service since that hire has been continuous and regular (not temporary) employment. 

      This Program does not include those staff members who hold the position of vice president or associate vice president, or who are designated as executives for purposes of the University’s salary plan.

      Eligible employees who timely apply for the Program and whose applications are accepted by the University are eligible to receive an incentive lump sum payment (subject to tax withholding), made up of:

      • Incentive Retirement Payment: An Incentive Retirement Payment of 6 months’ base pay up to a maximum of $50,000; and
      • Supplemental Incentive Payment: A Supplemental Incentive Payment of $4,398, based on the dollar amount of 6 months of active employee-only medical coverage in the University’s medical plan ($733 x 6).

        The last day of employment for staff members accepted into the program will be June 30, 2023.  Participating staff members must sign a Participation Agreement and a Release Agreement by April 14, 2023, and also a second Release Agreement on or after June 30, 2023.  The second Release Agreement must be received by the University between June 30, 2023, and July 8, 2023, in order to receive the lump sum payment.  The lump sum payment will be made on the University’s next payroll period following receipt of the executed second Release Agreement, i.e., July 14, 2023 or July 31, 2023.
         

  3. Why is the University offering this program?
    The University is offering this program because it helps the University more proactively plan for staff transitions, gives staff members retirement options, and promotes the University’s long-term financial resilience. Offering eligible staff members the option of obtaining additional financial support for voluntary retirement helps with this important life transition, and it also helps the University to more proactively plan for transitions and the long-term needs of the University.
     
  4. Are only certain staff members eligible to participate in the Program?
    Yes. Only regular staff members are eligible. In addition, a staff member must be at least 59.5 years old, and must have at least 10.5 years of University service as of June 30, 2023. Age 59.5 is also the age at which staff members can begin withdrawing retirement benefits from the University’s 403(b) plan without penalty. Service is measured from your most recent date of hire through June 30, 2023. For staff members who had a break in service, only the years since their most recent hire date will be considered. Job changes such as promotions and transfers do not affect the most recent hire date, as long as all service since that hire has been continuous and regular (not temporary) employment.
     
  5. Who cannot participate and are excluded from the Program?
    This program is open to all regular (non-temporary) staff members, except for those staff members who hold the position of vice president or associate vice president, or who are designated as executives for purposes of the University’s salary plan.  Staff members who do not meet the age and service requirements are not eligible to participate. 
     
  6. Will another Staff Retirement Incentive Program be offered later?
    There are no future voluntary retirement programs being considered at this time.
     
  7. What is the deadline for my decision?
    You must make your decision and submit your executed Participation Agreement and Release Agreement to the University no later than April 14, 2023.  Forms may be hand-delivered to the Office of Human Resources, emailed (with high importance), or mailed (via certified mail), to:

    Office: Howarth 016

    Email:  srip@pugetsound.edu
    SUBJ:  SRIP Participation Agreement

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

  8. When will I be notified if my application is accepted? How will I be notified?
    Your participation in the Program must be accepted by the University. You will be notified of the status of your application by April 26, 2023. You will receive notification via email and U.S. mail.
     
  9. What do I need to do to receive my incentive payment?  When will I get my payment?
    To participate in the Program, you must return the Participation Agreement (Exhibit A) and Release Agreement (Exhibit B) to the University by April 14, 2023. You will be notified if your Participation Agreement is accepted by April 26, 2023. 

    Once your Agreement is accepted, you will need to sign and return a second Release Agreement (Exhibit C) dated as of your last date of employment, June 30, 2023. The executed second Release Agreement must be received by the University during the period June 30, 2023, through July 8, 2023. It must be executed by you on or after June 30, 2023. Upon the University’s receipt of the second Release Agreement, you 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.
     

  10. How will the Incentive Retirement Payment and Supplemental Incentive Payment be taxed?
    Your Incentive Retirement Payment and Supplemental Incentive Payment will be taxed as supplemental income and will be subject to applicable tax withholding.

 

Considerations for Participating in the Program

 

  1. If I timely submit my Participation Agreement and Release Agreement, am I guaranteed participation?
    No. Your Participation Agreement must be accepted by the University. Factors to be considered by the University in evaluating your agreement to participate in 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.

      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 member(s), the University will first accept the voluntary retirement of the staff member with the highest number of points while retaining the staff member(s) with the lower number of points until the business necessity or financial need is satisfied. A staff member receives one point for each year of age and an additional point for each year of service. 
       

  2. Can I appeal the decision if I elect to participate in the Program and I am turned down?
    No.  All decisions are final.
     
  3. If I elect to participate, can I change my mind later?
    No. Your application is irrevocable once the revocation period has passed, subject only to acceptance by the University.
     
  4. If I participate in the Program, would I be eligible for state unemployment benefits?
    Since this program is a voluntary resignation of employment/retirement, you may not be eligible for unemployment benefits. The University, however, does not make that determination. Please feel free to call the Employment Security Department at 833.572.8400 with questions.
     
  5. Will I remain eligible to participate in University’s benefit plans after June 30, 2023?
    No. All benefits, with the exception of COBRA, will stop June 30, 2023, the end of the month you end your employment.
     
  6. Can I keep my health insurance through COBRA?
    Yes. If you are enrolled in the University’s health insurance plan at the time your employment ends, you are eligible to keep your health insurance through COBRA for up to 18 months by continuing to pay your premiums and a small administrative fee. However, there is no requirement that you elect COBRA coverage, or that your Supplemental Incentive Payment be used to purchase medical coverage.
     
  7. How do I sign up for COBRA?
    You will receive a COBRA packet mailed to your home address.  It will include instructions and the deadline to sign up for coverage. Contact benefits@pugetsound.edu if you do not receive the COBRA forms within 30 days following your end of employment on June 30, 2023.
     
  8. Can I port or convert my Puget Sound life/AD&D insurance to another policy following my retirement? 
    You may be eligible to convert or port basic life, supplemental life, and dependent life coverage. AD&D may be ported with life insurance coverage. Certain limitations and restrictions apply. For information on these options, contact benefits@pugetsound.edu.
     
  9. Can I contribute my lump-sum incentive payment to my University retirement plans?
    No. The incentive payments are not eligible for employer retirement contributions, and they may not be used to contribute to the retirement plans.
     
  10. What happens if I currently participate in the Health Care Flexible Spending Account?
    You can continue your enrollment in the Health Care Flexible Spending Account through COBRA by making after-tax contributions through the end of the calendar year. Otherwise, you can use your FSA funds to pay for medical services that you incurred up to June 30, 2023.
     
  11. What happens to long-term disability coverage?
    Long-term disability coverage will end on June 30, 2023.
     
  12. Will I continue to be eligible for education benefits if I retire under this program?
    Staff members who retire under this program will be eligible for education benefits as provided for in policy. Currently, staff members who retire and who have been working at the .75 FTE level may be eligible for education benefits if they continue to be provided, and if the staff member is leaving university employment and the full-time, regular labor market, is at least fifty-five (55) years old, and has worked for the university for at least twenty (20) years.
     
  13. Can I work for the University after my retirement if I participate in the Program?
    After a one-year period following your retirement date, you would be eligible for rehire into temporary positions at the University. You will not be eligible to apply for regular (ongoing) positions at the University.
     
  14. Am I eligible for payout of my accrued vacation and sick leave upon retirement, in addition to the incentive lump sum and supplement?
    Staff members who retire under this program are eligible to receive payouts of accumulated unused vacation and sick leave according to policy. Staff members will be paid for accumulated unused vacation leave. Staff members who retire at or after age 55 with 20 or more years of service as of the date of retirement are eligible to receive a payout of one quarter (25%) of their accumulated unused sick leave. For more information on staff retirement, see the Staff Retirement Policy online here: https://www.pugetsound.edu/general-counsel-and-risk-management/policies/staff-policies/retirement-university-employment.