Human Resource Services is now accepting applications for a new Voluntary Early Retirement Incentive Program (VERI) for employees who participate in the Washington State University Retirement Plan.
The program is available to WSU employees aged 55 or older who have participated in the WSURP for at least a decade. Of the more than 3,500 employees participating in WSURP, there are approximately 760 eligible for VERI, including 520 faculty, 220 administrative professionals, and 20 classified staff.
HRS has an extensive frequently asked questions section on its website, as well as information on how to apply for the program, and a VERI presentations schedule. The deadline to apply is July 3, with those employees whose applications are accepted expected to retire by Aug. 31.
During her presentation about the program to the Board of Regents, Interim Vice President & Chief Human Resource Officer Jennifer Klein said the truncated timeline is needed to maximize on cost recovery heading into the next fiscal year. Provost and Executive Vice President Chris-Riley Tillman also noted the need to prepare for the upcoming fall semester with respect to potential faculty retirements, ensuring the best possible experience for students in the fall.
The move to offer an early retirement incentive for the first time since 2010 comes as the university grapples with financial uncertainty, driven by budget challenges at the state and federal level. More information about how the university is addressing these challenges as it enters the next phase of its land grant mission is available on the recently-launched New Chapter website.
Eligible employees whose applications are accepted will receive a one-time payment equal to one week of their annual base salary per year of retirement-eligible service, up to 20 weeks, less legally required deductions.
Eligible employees whose applications are accepted will receive a one-time payment equal to one week of their annual base salary per year of retirement-eligible service, up to 20 weeks, less legally required deductions. An example provided in the Board of Regents packet outlined that a 15-year employee in a 9-month position at 100% FTE making $137,500 per year would receive $52,890 in a lump sum, minus required tax deductions.
Applications will not be automatically approved, with HRS staff evaluating eligibility criteria and working with applicable appointing authorities to determine if acceptance would represent a total cost savings to the institution.
If approved, an employee will be required to separate from the university. Those who do so are not able to return to employment at the university for at least five years, unless under exceptional circumstances that will be reviewed by the president or provost, with HRS facilitating. Returning employees — either after five years or with approved early return — would be limited to .4 FTE. They would have to go through the retire-rehire review process.
WSU previously offered similar early retirement incentives in 2009 and 2010, with 7.5% and 3.14% of eligible employees pursuing the option in those two years, respectively.
WSU employees who participate in a State of Washington’s Department of Retirement Services plan, such as PERS, TRS, or LEOFF, are not eligible to apply for VERI. Klein noted that the state’s Office of Financial Management is still developing the DRS incentive plan, which WSU will review and consider once finalized.
