The Washington State Legislature authorized a Voluntary Separation and Retirement Incentive (VSRI) Plan for eligible employees. Eastern Washington University has received approval from the Office of Financial management (OFM) to offer voluntary incentive programs for retirement and separation to eligible employees to partially mitigate the current budget shortfall.
The VSRI Plan provides options for eligible employees to: 1) retire, or 2) separate. The eligibility requirements for individuals who wish to retire were established by OFM.
Participation is voluntary.
In order to be eligible for the retirement option you must meet all of the following criteria:
- Employee must be in a position approved by the University President or designee as appropriate based on budgetary needs and on the ability to maintain programs and services in line with Strategic Targeting;
- Employee must have permanent state status;
- Employee must meet the eligibility requirements for a normal retirement for your PERS plan for at least 12 months prior to the approved retirement date.
Example: If normal retirement is age 65 with 5 or more years of service, you must be age 66 and have 6 or more years of service by the approved retirement date to be eligible.
- Please note, that if you have already turned in your Declaration of Retirement, you are not eligible to participate in the incentive plan.
Normal Retirement Eligibility is identified in the table below:
| Plan | Normal Retirement Eligibility Reference |
| PERS 1 | Age 60 and 5 years of service;Age 55 and 25 years of service; or30 years of service (any age) |
| PERS 2 | Age 65 and 5 years of service |
| PERS 3 | Age 65 and 10 years of service;Age 65 and 5 years of service, including 12 months of service after age 54; orAge 65 and 5 years of service if the member completed 5 years of service before the Plan 2-to-3 transfer date |
Current pension plan recipients (retire-rehire employees) are not eligible for incentives.
The timeline to pick up your VSRI retirement packet is from November 2, 2020 – December 14, 2020. You will have until January 29, 2021 to return your packet if you wish to apply. It is important to note these two deadlines.
- Employees who wish to apply for the Retirement Incentive, must view the acknowledgement video and complete their request here: https://inside.ewu.edu/hr/benefits/. Packets may be requested beginning Monday, November 2 through Monday, December 14, 2020 by 5:00 pm Pacific Standard Time. Pursuant to federal law, you will have a minimum of 45 days to review, sign and return the agreement.
- If you wish to participate you must return a signed and notarized agreement to the Human Resources Benefits Office no later than Friday, January 29, 2021 by 5:00 pm Pacific Standard Time. Once you sign the Agreement you have seven (7) days to revoke your decision. If you choose to revoke your decision, you must provide written notice to the President’s Office with a copy to Janis Bliss, Senior Director of Employee Benefits.
- The effective date of retirement for PERS members may be as soon as the employee’s application is approved, and must be no later than July 1, 2021 (last day of employment no later than June 30, 2021).
The University will provide written notification of whether requests have been accepted or denied no later than Friday, February 19, 2021, 5:00 PM Pacific Standard Time.
Employees may select from one of three incentive options:
- Incentive Payment: Employee elects a lump sum amount of $20,000 subject to applicable withholdings to be paid by EWU no later than 30 days after the effective date of separation.
- Health Care Payment Incentive: Employee elects to have their incentive payment deposited into an account at the Health Care Authority (HCA). HCA will credit the monthly premium cost for health care coverage against that account. The monthly premium will be determined by the health care plan selected, the number of individuals covered, and the current insurance rates. Any increase in premium rates will be reflected in the monthly charge. The length of coverage would be determined by the cost of the monthly premiums. Contact HCA for additional details on this option.
- Split Incentive Payment–Employee elects to split the incentive payment, receiving a portion of the incentive as a cash payment with the remainder deposited into an account at the HCA. The HCA would credit the cost of the employee’s health care premium against the account. The number of months of coverage would depend upon the amount deposited, and the cost of the health care premiums for the plan selected by the employee.
No. You will not be eligible for unemployment if you retire under these plans.
- Any employee receiving a retirement incentive who returns to work for the State of Washington within five years as an employee or contractor must repay the incentive.
- The state guidelines govern any exceptions. Exceptions may be granted, prior to hire, with approval from the OFM
- OFM will notify EWU of any employee who returns to work for the state of Washington within five years of receiving the incentive.
Additionally, PERS retirees are subject to specific re-employment rules. See www.drs.wa.gov for more info. You may work for any other employer without restrictions.
Your EWU provided health coverage will continue through the last day of the month in which employment ends.
As a retiree, you are eligible to enroll in the state’s retiree medical/dental insurance plans.
The rates are available online: www.pebb.hca.wa.gov/by_rate.html
Any unused vacation time will be paid to you on a separate check within 30 days of your retirement date.
As an eligible retiring employee, sick leave will be cashed out at 25%, and deposited into a medical spending account (VEBA).
Personal holiday/leave days cannot be cashed out; however, you may schedule to use them before you leave.
Eligibility for the Voluntary Retirement Incentive, requires you to meet the rules for normal retirement for your plan for at least 12 months prior the approved retirement date. The Department of Retirement Systems (DRS) calculates years of service based on hours worked in an eligible position to determine normal retirement.
Example: If normal retirement is age 65 with 5 or more years of service, you must be age 66 and have 6 or more years of service by the approved date of retirement to be eligible.
EWU has received approval from the Office of Financial Management (OFM) to offer voluntary incentive programs under the Voluntary Separation and Retirement Program and in accordance with the “Voluntary Separation, and Retirement Program for State Employees, 2019-21 Biennium Guidelines.”
Call the Human Resources Benefits Office at (509) 359-2488, view additional information on the Benefits website at https://inside.ewu.edu/hr/benefits/, email, or use the form at the bottom of the VSRI page.
