Voluntary Separation Incentive Program Presented by: UW-Superior Human Resources Steve Marshall, Gigi Koenig Give some ‘history’ of the program. This tool became available to us in late February.

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. May have to mention classification of employees that are not eligible for the program.

Dates 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. Remember to mention the 45 day window that employees have once the final decision is communicated.

How to Determine Employee Benefit Amount 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% = $30,000 Benefit amount does not include: Overloads Winterim, summer service, summer session amounts Overtime Standby pay Weekend, night, shift differentials, etc. Mention temporary base adjustments, interim positions, J-term

Example-University Staff: Adjusted Base Salary = $50,000 Differential + $ 200 Overtime pay + $ 650 _______________________________ Total Compensation = $50,850 Total separation incentive amount = $25,000

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

Payout Methods 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.

Option 1: Cash payout Employee may choose a cash payout of the separation incentive in a lump sum payment. Points to consider: Cash payments will be taxed Employees considering this option in full or part should consult with  a tax advisor or financial planner. Mention that changes could involve a change to a W-4.

Option 2 & 3: Contributions 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) plan 457 Wisconsin Deferred Compensation Plan (WDC) Must establish 403 or 457 plan(s) at least 2 months prior to contribution(s) High deductible; high premium

Option 2 & 3: Contributions 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 = $3,400 Family = $6,750 HSA “catch-up” contribution for 55+ = $1,000

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.

Additional Resources: 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   

Dates to Remember! 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. Remind again about the 45 day window.

Final Reminders 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, 2017 Contact ETF at 877-533-5020, as soon as possible to request a retirement estimate.

Thank you for attending! Questions?