Resources
Access support resources for eligible participants on the resources webpage.
- Eligibility
- Payment
- I'm Eligible. What now?
- Timeline
- Participant Next Steps
- Frequently Asked Questions
In 2019, the University will offer the Voluntary Separation Program (VSP), a one-time opportunity, to eligible faculty members who meet certain age and service criteria. The program provides a lump sum payout for eligible participants who choose to separate from the University of Missouri System effective September 1, 2019, for nine-month faculty and between July 1 and September 1 for 12-month faculty. The VSP is designed to recognize the contributions of eligible faculty members by providing them a valuable benefit that reflects their commitment, but it also helps schools and colleges manage in a challenging financial environment by providing budget flexibility for funding new positions and appropriate salary increases.
Eligibility
To be eligible to participate, faculty members must, as of their retirement date:
- be full-time and benefit eligible;
- hold a tenured appointment;
- have accrued five years or more of creditable service; and
- be age 62 or over.
Faculty for whom there are pending investigations or processes under CRR Sections 310.060, 330.110, 420.010 or Chapter 600 will be eligible only with approval of the Chancellor.
Tenured individuals who are under age 62 and/or not vested in the retirement plan as of August 31, 2019, are not eligible to participate.
If you’re eligible, visit the I'm Eligible. What Now? section to learn more about how to make the decision that’s best for you.
Payment
Eligible faculty members who choose to participate in the program will be eligible for a lump sum payment equal to 1.5 times the annual benefits-eligible salary* they have in effect as of August 31, 2019. The payment may not exceed $200,000. The lump sum payment will be paid out no later than November 1, 2019. Please note, this payment does not count toward final retirement benefit or service credit calculations.
*Benefits-eligible salary is the salary amount used to calculate University benefits. Please note, benefits-eligible salary is not inclusive of summer salary for nine-month appointees. Eligible faculty will see their benefits-eligible salary in the information packet they'll receive in February of 2019.
I'm Eligible. What Now?
If you are eligible to participate in the VSP, you can begin researching and weighing your options now using the many resources available to you. You are also encouraged to contact your dean to let them know you are interested in the VSP.
Participant Next Steps
If you choose to participate in the VSP, there are a few steps you'll need to complete to ensure a smooth transition into retirement:
- Return the Voluntary Separation Program agreement to your provost office no later than March 25, 2019. This agreement was provided to you by mail.
- In late April, you will receive a confirmation packet with your finalized agreement and a Notice of Intent to Retire (NOI). Complete the NOI and submit it your campus Human Resources Generalist. After submitting your NOI, watch your email for a confirmation from Retirement Programs. At that point you will begin to make your benefit elections choices.
Timeline
The UM System will continue to communicate with faculty who are eligible to participate in the VSP, and those who are interested in participating will be required to take action in early 2019.
In 2019—
- February – Notification packets will be distributed to eligible faculty members.
- March – Eligible faculty members interested in participating must complete a Voluntary Separation Program Agreement. The application and specific deadlines will be available in early spring.
- April – Those who have indicated interest in participating will receive an executed copy of the program agreement and may revoke their decision on or before May 3, 2019. After May 3, 2019, decisions will be irrevocable.
- Summer - Fall – Participants will receive their lump sum payment no later than November 1.
- Pension and applicable retiree insurance benefits will begin on September 1, 2019, for nine-month faculty and the first of the month following the retirement date for twelve-month faculty who properly complete election forms by the dates indicated on the forms, or participants may defer retirement plan benefits as discussed below.
Frequently Asked Questions
What is the Voluntary Separation Program?
The Voluntary Separation Program (VSP) is a one-time opportunity for eligible faculty members who meet certain age and service criteria to receive a lump sum payout for separating from the University of Missouri System effective September 1, 2019, for nine-month faculty and between July 1 and September 1 for 12-month faculty.
Why is the University offering this program?
The VSP is designed to recognize contributions made by eligible faculty members during their time with the University and provides them with a valuable benefit that reflects their commitment. At the same time, the program will help schools and colleges manage in a challenging financial environment by providing budgetary flexibility for funding new positions and appropriate salary increases.
Is this an early retirement program?
No, the VSP is not an early retirement program but a buyout of your tenure rights. If you participate in the program, you have the option of deferring receipt of your pension benefits to a future date.
How is the program funded?
One-time lump sum payments provided through the VSP will be funded either from the campus, schools and colleges or a combination of both.
Will this program be available to faculty retiring after September 1, 2019?
No. This program is not available to faculty retiring after September 1, 2019.
Who is eligible for the VSP program?
To be eligible to participate, faculty members must, as of their retirement date:
- be full-time and benefit eligible;
- hold a tenured appointment;
- have accrued five years or more of creditable service; and
- be age 62 or over.
Faculty for whom there are pending investigations or processes under CRR Sections 310.060, 330.110, 420.010 or Chapter 600 will be eligible only with approval of the Chancellor.
Tenured individuals who are under age 62 and/or not vested in the retirement plan as of August 31, 2019, are not eligible to participate. Eligible faculty members will receive an information packet describing the program in early spring of 2019.
If eligible, am I required to participate in the VSP?
No. The VSP is an entirely voluntary program. Faculty members who meet the eligibility criteria are eligible to participate, but are under no obligation to do so and are encouraged to research their options so they can make the decision that is best for them.
If I participate in the program, how will my lump sum payment be calculated?
If you participate in the program, you will be eligible for a lump sum payment equal to 1.5 times your annual benefits-eligible salary in effect as of August 31, 2019. The payment is not to exceed $200,000.
What is my benefits-eligible salary?
Your benefits-eligible salary is the salary amount used to calculate your University benefits. Please note, your benefits-eligible salary is not inclusive of your summer salary if you are a nine-month appointee. If you are eligible for the VSP, your benefits-eligible salary will be shown at the top of the cover letter from the February 2019 information packet.
Is the lump sum payment taxable?
The University does not believe it is required to withhold state and federal income and employment taxes from Voluntary Separation Program lump sum payments. However, lump sum payments may be subject to applicable state and federal income tax. Please consult with your tax advisor for more information about any personal tax implications the program may have for you.
Can I defer all or a portion of the lump sum payment?
The University has been advised that this lump sum payment does not constitute compensation from which voluntary deferrals may be made on a tax-free basis. However, you may have the opportunity to maximize contributions to the University’s voluntary retirement plans from other sources of compensation prior to separation in order to reduce your possible tax responsibility.
When will I receive the lump sum payment?
You will receive the lump sum payment no later than November 1, 2019. This payment does not count toward your final retirement benefit calculation or service credit calculation.
If I participate in the program, how will my retirement plan benefits be affected?
If you participate in the VSP, you can choose to begin your pension benefits as early as your retirement date or defer to a future date, if you are under age 65 and eligible for early retirement. You can find more details about your retirement benefits on the core and voluntary retirement plans webpage.
How can I request a copy of my personalized retirement benefit estimate calculation under the Voluntary Separation Program?
A personalized pension benefit estimate calculation has been prepared and is available to eligible faculty members. To request a copy, email umhrVSP@umsystem.edu.
You may also run additional retirement scenarios in the University of Missouri Pension Benefits Portal.
What about my insurance benefits?
If you participate in the VSP and meet retiree insurance eligibility requirements, your retiree insurance benefits begin on your retirement date. You and the university will share the premium costs for your medical and dental benefits based on your eligibility for coverage. To estimate your retiree insurance premiums, visit https://umsystem.edu/forms/retiree-premium-estimator. More information about retiree insurance benefits is available at: https://umsystem.edu/totalrewards/retirement/benefits_overview.
How do I determine my retirement date?
- Nine-month faculty: Your retirement date will be September 1, 2019.
- 12-month faculty: Your retirement date should be the day after your last day worked, and must be between July 1 and September 1.
I have already submitted a Notice of Intent to Retire (NOI) form for a future retirement date. Can I change my retirement date in order to participate in the 2019 Voluntary Separation Program?
Yes. Eligible faculty who have already submitted an NOI for a future retirement date may adjust their retirement date by notifying their department and the Retirement Programs Office no later than December 14, 2018.
How do I apply for the program?
If you choose to participate, you’ll have the opportunity to complete a Voluntary Separation Program Agreement, located on the secure program website in myHR, in the spring. You’re encouraged to let your dean know you’re interested in the program.
When completing the separation agreement, please indicate your intended separation date as September 1, 2019, if you are a nine-month faculty member or any date between July 1 and September 1 if you are a 12-month faculty member.
What happens after I apply?
After you apply, you will receive an executed copy of the Voluntary Separation Program Agreement by March 2019.
What if I change my mind about retiring?
Submitting an application does not bind you to the program. Once you receive the executed copy of the Voluntary Separation Agreement, you have a seven-day “revocation period” during which you can change your mind. After that date, your decision will be irrevocable.
What if I want to change my separation date?
You can change your separation date anytime up to the expiration of the seven-day “revocation period” that begins when you receive the executed copy of your Voluntary Separation Program Agreement. After that point, you cannot change your separation date.
Am I eligible for rehire with the University if I elect the Voluntary Separation Program?
Faculty members who choose to participate in the Voluntary Separation Program may be reemployed by the University on a part-time basis (70% or less FTE). Rehire opportunities are based on the needs of the University and are not a part of the Voluntary Separation Agreement. You may have preliminary discussions about potential rehire with your dean as you consider applying for the program. Final decisions regarding potential rehire opportunities must be approved by the provost.
Reviewed 2019-08-05