Staff Voluntary Retirement

Note: This website describes the details for the ETSU staff retirement incentive program. Information for faculty can be found on the Faculty Voluntary Retirement website.

On August 24 staff will be notified of their acceptance into the Retirement Incentive Program. TCRS members are encouraged to apply for the TCRS benefit before September 1 to allow TCRS 90 days to process the retirement application. If a staff member needs assistance applying for TCRS retirement, they may schedule an appointment to meet with Shannon Jarrett to complete the TCRS application by visiting https://calendly.com/etsubenefits/apply-for-tcrs-retirement-online?month=2020-08. Otherwise, the TCRS retirement application may be completed online via the TCRS portal .

Voluntary Staff Retirement Incentive Program
East Tennessee State University

Overview

As part of the university’s initiatives to reduce budgets for fiscal year 2020-2021, the Strategic Options Workgroup has recommended that a Voluntary Retirement Incentive Program be offered to faculty and staff. The program below outlines the incentive for staff at ETSU.

This opportunity reflects the current needs and resources of the university and may be withdrawn or altered at any time in the future. This one-time, special incentive is offered to eligible staff who (1) submit an application for participation in the Program no later than August 14, 2020, (2) are approved to participate in the program, and (3) will retire no later than October 31, 2020. Staff members who have submitted their intent to retire before the announcement of the program are not eligible for this incentive.

Staff will submit their application for acceptance into the program no later than August 14, 2020 at 4:30 PM.  This program will be limited to 75 participants in non-faculty classifications. ETSU may deny participation of any applicant based on business continuity and campus needs. Approved participants may also be required to delay effective date of retirement based on campus needs.  Approval for participation may be based on order of applications received, years of creditable service, or a phased approach may be utilized as a means to ensure continuity of service.

Whether this, or any other, Voluntary Staff Retirement Incentive Program will be offered at any time thereafter is entirely at the discretion of East Tennessee State University. However, staff members should not anticipate that this, or any other, retirement incentive will be available to them after October 31, 2020. Moreover, ETSU reserves the right to discontinue this program at any time before October 31, 2020 at its sole discretion, although it will honor commitments to staff who have applied and been approved as defined below:

Eligibility

  • Full-time, actively employed, state budgeted staff member.
  • Ten years of employment at East Tennessee State University as of the retirement date.
    • TCRS Members must also be 60 years of age and have 5 years of creditable service or be any age and have 30 years of creditable service (including credit for sick leave*).
    • ORP Members must also be 55 years of age.
  • ETSU may choose to exclude or delay the retirement date for certain staff members in key positions or roles from the program.

*Eligibility letters were not sent to employees with less than 30 years of creditable service in the TCRS system.  Employees who believe they will eligible for full retirement in TCRS on October 31, 2020 through the use of their accrued sick leave, should contact the Office of Human Resources and/or make application to the program.  Human Resources will evaluate those applications to ensure the employee will be eligible for full retirement.

 

Program

  • Applications must be received no earlier than 8:00 AM on July 1, 2020 and no later than 4:30 PM on August 14, 2020 .
  • Staff member’s last day worked will be on October 30, 2020.
  • Staff member’s official retirement date will be October 31, 2020. Terminal leave will not be available under this program. Annual leave balances will be paid out on October 31, 2020.
  • Staff member will receive a lump-sum payout equivalent to 40% of the October 31, 2020 base1 salary on November 30, 2020. A minimum payout of $10,000 has been established for this program; eligible staff will receive a payout of $10,000 or 40% of their base salary, whichever is greater.
  • Staff members will receive $100 for each year of creditable state service as of October 31, 2020 up to a maximum payment of $3,000. This payment will be in lieu of anticipated longevity between November 1, 2020 and October 31, 2021 and will be included on the November 30, 2020 payout.
  • Participants in this program are eligible for future part-time or adjunct employment2 up to retirement limits.3
  • Participants in this program may not return to full-time employment at the university for a period of five (5) years from the date of retirement. Limited exceptions may be granted by the President.

Application Process

A staff member may apply to participate in the program by completing the application form and delivering it to the Office of Human Resources, East Tennessee State University, 1276 Gilbreath Dr., Burgin Dossett Hall, Room 307, Johnson City, Tennessee 37614 no later than 4:30 P.M. on August 14, 2020. Applications may also be scanned and emailed to hr@etsu.edu; the email must contain an image of the application form with the applicant’s signature, and must be sent from the applicant’s ETSU email address. Emails from personal email addresses will not be accepted. Applications sent via email must be time-stamped by the application deadline, 4:30 P.M., August 14, 2020. If approved to participate, the staff member must also sign, return, and not revoke a Voluntary Staff Retirement Incentive Agreement and a Voluntary Staff Retirement Incentive Program Waiver and Release form (provided by the Office of Human Resources) within 10 business days of his or her notice of acceptance in the program.

Once the Voluntary Staff Retirement Incentive Agreement and a Voluntary Staff Retirement Incentive Program Waiver and Release form are received in Human Resources, the staff member will have 7 days to revoke the agreement in writing.

Timeline

  • June 19, 2020 – Announcement of Program
  • June 22, 2020 - Emails will be sent to eligible staff from Human Resources
  • July 1, 2020 at 8:00 AM - Program opens for applications
  • July 1, 2020 – August 14, 2020 – Applications from staff are accepted
  • August 14, 2020 at 4:30 PM - Program closes; no additional applications will be accepted
  • August 17, 2020 – August 21, 2020 – Human Resources will meet with Vice Presidents to discuss acceptance of staff into program
  • August 24, 2020 – HR will send notification of acceptance into the program to employees, along with the Agreement and Waiver/Release forms
  • September 4, 2020 – All Agreement and Waiver/Release forms must be returned to HR. Staff will have 7 calendar days from the date the Agreement and Waiver/Release form is signed to revoke their intent to retire

[1] Base salary is exclusive of longevity, stipends, and additional salary for temporary or additional duties.
[2] Part-time or adjunct employment is not guaranteed.
[3] Pursuant to Tennessee Code Annotated, retirees who are receiving benefits from the state retirement plans are limited to working 120 days or 900 hours per year.

Forms

Application for Staff Volunteer Retirement Program (applications will not be accepted before July 1, 2020 at 8:00AM EST)

Sample Retirement Letter

Informational Sessions

Staff informational sessions: Join Lori Erickson, Assistant Vice President for Human Resources, and Shannon Jarrett, Benefits Manager, for an information session on the Voluntary Staff Retirement Incentive Program.

Monday, June 22, 2020 at 11:00am - Register

Tuesday, June 23, 2020 at 11:30am - Register

Thursday, June 25, 2020 at 12:00pm - Register

Thursday, June 25 2020 at 3:30pm - Register

Friday, June 26, 2020 at 8:00am - Register

Friday, June 26, 2020 at 1:00pm - Register

All sessions will be held via Zoom meeting.

Frequently Asked Questions

 

  • Why is this retirement incentive being offered?
    The Voluntary Retirement Incentive Program is being offered as part of the University’s strategic plan to reduce budget dollars for fiscal year 2021.
  • Who is eligible?

    The Voluntary Staff Retirement Incentive Program eligibility is identified below.

    Staff Eligibility

    ·         Full-time, actively employed, budgeted staff member.

    ·         Ten years of employment at East Tennessee State University as of the retirement date.

    o   TCRS Members must also be 60 years of age and have 5 years of creditable service or be any age and have 30 years of creditable service.

    o   ORP Members must also be 55 years of age.

    ·         ETSU may choose to exclude certain staff members in key positions or roles from the program.

  • Am I required to participate in the program?
    No, the program is voluntary.  If an employee believes and/or says that he/she is getting pressure to retire or not to retire, please contact the Office of Human Resources.
  • Do employees have to wait until the retirement date or can they leave earlier?
    Employees cannot leave earlier and remain eligible under the program. The staff member’s last day worked will be on October 30, 2020 with an official retirement date of October 31, 2020. Terminal leave (using your accrued annual leave to extend your employment) will not be available under this program. Your remaining annual leave balance will be paid in a lump sum in the October 2020 paycheck.
  • Will there be any change to ETSU’s retirement benefits if I take this offer?
    You will be eligible for the same retirement benefits you would have received if you made the decision to retire outside this program.
  • Will I be eligible for medical insurance after retirement?
    Staff may be eligible to elect to participate in the Partners for Health retiree medical plan or to purchase the Tennessee Plan Medicare supplement after they retire from ETSU, subject to the rules of that plan. Staff considering retirement are encouraged to contact a Retirement Specialist at the Benefits Administration regarding your eligibility to continue insurance in retirement by calling (800) 253-9981; select option 2. Additional questions may be referred to the Human Resources Benefits Department at (423) 439-6126. 
  • What is the retirement incentive?

    Staff member will receive a lump-sum payout equivalent to 40% of the October 31, 2020 base* salary or $10,000, whichever is the greater, on November 30, 2020.

    Staff members will receive $100 for each year of creditable state service as of October 31, 2020 up to a maximum payment of $3,000.  This payment will be in lieu of anticipated longevity between November 1, 2020 and October 31, 2021 and will be included on the November 30, 2020 payout.

    *Base salary is exclusive of longevity, stipends, and additional salary for temporary or additional duties.

  • What resources are available to determine if now is a good time to retire?

    Visit the Retire Ready Tennessee website for information on retirement.

    Schedule a time to meet with your Retire Ready Tennessee Counselor.

  • I have a dependent who will be a student. If I retire under the program, will the benefit for my dependent continue?
    Yes. Tuition discounts can continue as outlined in Educational Benefits policy under the Fee Discount for Spouse and/or Dependent Children section.
  • How will the accrued balance of sick leave be applied to my retirement?

    Sick Leave will be applied based upon the employee’s retirement plan.

    • TCRS – balance of sick leave will be credited to TCRS service at the rate of 20 days equals 1 month of service
    • ORP – accrued sick leave will be converted to service credit for purposes of continuing insurance in retirement. Balance of sick leave may be donated to the sick leave bank.
  • How can an employee verify if he or she is eligible for the Voluntary Staff Retirement Incentive Program?

    An email will be sent to eligible participant's ETSU email account on June 22, 2020.  A letter will also be mailed to each eligible participant's home address on June 22, 2020. Questions may be directed to the Office of Human Resources. If you feel you are eligible for this program, but did not receive an eligibility email/letter, please contact the Office of Human Resources.

  • Will I receive my upcoming longevity payment?

    If your longevity dates falls before November 1, 2020 then you will be eligible to receive your longevity payment in the normal month of payment. Additionally, retirees in this program will receive a payment of $100 per year of service in lieu of longevity payments due from November 1, 2020 to October 31, 2021 paid to you in the November 2020 incentive payment.

  • Will there be a later opportunity to participate in another retirement incentive program?

    There are currently no plans for a future retirement incentive program. 

  • Can sick leave be used to reach 30 years of TCRS service for participation in this incentive program?

    No.  TCRS participants under the age of 60 cannot use their balance of sick leave to become eligible for the incentive program.  However, these employees may still be eligible for retirement with TCRS, outside of this incentive program.

  • When will my current ETSU insurance coverage end?

    Participants in this program will be given the option to continue their ETSU health coverage through November 30, 2020.

  • How will I know if my email application was received?

    You will receive a response from hr@etsu.edu acknowledging receipt of your application.  Please allow 1 day for response.

  • How can I calculate my anticipated annual leave payout?

    Divide your current base salary by 1,950 hours to calculate your hourly rate.  You can multiply this hourly rate by the number of annual leave hours you have available.  Annual leave balances are available via Goldlink Self-Service; they do not reflect hours earned or taken in the current month.

  • Will staff be paid for the Thanksgiving and Christmas holidays?

    No.  The retirement date is October 31, 2020.  Staff will not be actively on payroll for the Thanksgiving and Christmas holidays.

  • Can staff donate their sick leave balance upon retirement?

    Yes, staff who are members of the ORP may donate their sick leave balance to the sick leave bank upon their retirement.

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