University of Illinois at Urbana-Champaign Voluntary Retirement Program For Retirement-Eligible Tenured Faculty and Other Academic Staff February 3, 2010
TABLE OF CONTENTS INTRODUCTION...1 PROGRAM DESCRIPTION...1 THE PROGRAM IS VOLUNTARY...2 ELIGIBILITY...2 INELIGIBILITY...3 VRP APPLICATION PROCEDURE...3 VRP PAYMENT...4 OTHER CONSIDERATION...4 INFORMATION REGARDING OTHER BENEFITS...4 FORFEITURE OF TENURE AND NOTICE RIGHTS...4 INFORMATION TO BE FURNISHED...5 SEPARATION AGREEMENT WITH WAIVER AND RELEASE...5 RECOMMENDATION OF ATTORNEY REVIEW...5 FUTURE EMPLOYMENT AT THE UNIVERSITY OF ILLINOIS...6 NO ASSIGNMENT OF VRP PAYMENTS...6 MAXIMUM PAYMENT...6 RECOVERY OF VRP PAYMENTS MADE BY MISTAKE...6 REPRESENTATIONS CONTRARY TO THE VRP...6 NO EMPLOYMENT RIGHTS OR CONTRACT...7 APPLICABLE LAW...7 SEVERABILITY...7 NONDISCRIMINATION STATEMENT...7 AMENDMENT OF THE VRP...7 END OF THE PROGRAM...7 QUESTIONS REGARDING THE VRP...8 DISPUTES REGARDING THE APPLICATION OF THE VRP...8 i
UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN VOLUNTARY RETIREMENT PROGRAM FOR RETIREMENT-ELIGIBLE TENURED FACULTY AND OTHER ACADEMIC STAFF INTRODUCTION The University of Illinois at Urbana-Champaign (the Urbana Campus ) is faced with unprecedented economic uncertainty created by a weak Illinois economy and serious state financial problems. As one response to this challenge, the Urbana Campus has adopted the University of Illinois at Urbana-Champaign Voluntary Retirement Program ( VRP ), effective February 3, 2010, for qualified tenured faculty and other academic staff who are retirement-eligible under the State Universities Retirement System ( SURS ). The VRP is designed to provide eligible employees who voluntarily elect to separate employment from the Urbana Campus with the separation benefits described in this program document. The VRP is intended to reduce the size of the Urbana Campus work force to save money over the long-term. The VRP is intended primarily for eligible employees in state-funded positions. However, campus units may also consider eligible employees in positions funded from other sources if doing so meets the Urbana Campus goals. PROGRAM DESCRIPTION The opportunity for employees to apply for the VRP is limited. The application period begins on February 3, 2010, and ends on April 2, 2010. Approved employees will have to separate from the Urbana Campus no later than August 15, 2011. Approved employees will be required to sign a Separation Agreement with a release of claims, described later in this document. Additional information, including a template of the Separation Agreement, can be reviewed on-line at http://www.shr.illinois.edu/vrp.htm. In general, each employee who separates from the Urbana Campus in accordance with the VRP will receive a lump-sum payment equal to 50% of the employee s annual base salary as of April 2, 2010, up to a maximum amount of $75,000, less required deductions. This document shall serve as the program document governing the terms of the VRP. Eligibility and payments for the VRP are governed by the terms of this document. Please refer to this document for information concerning any rights and obligations you may have under the VRP. The VRP is not an entitlement and any approvals under the VRP must be consistent with the needs of the Urbana Campus. A fundamental requirement of the VRP is that any approvals to participate in the VRP must result in a benefit to the Urbana Campus, such as a significant cost savings as determined by departmental and campus administration; therefore, not every eligible employee s application to participate in the VRP will be approved.
THE PROGRAM IS VOLUNTARY You are encouraged to consider the program and determine if it is the right opportunity for you; however, no one can require you to apply or not apply to the VRP. Submitting an application to participate in the VRP shall be on a voluntary basis for all eligible employees. The VRP does not in any way change your current employment relationship with the Urbana Campus. You should understand that if you are eligible and decline to participate, you will not be treated any differently than any other similarly situated employee with respect to future terms and conditions of employment. ELIGIBILITY The VRP is available only to eligible Urbana Campus employees. You are an eligible employee if you are (a) SURS retirement-eligible as of your voluntary separation date; and (b) a faculty or other academic employee in one of the following groups: (i) (ii) (iii) Permanent tenured faculty at the rank of Assistant Professor, Associate Professor or (full) Professor; Permanent Assistant Professor, Associate Professor or (full) Professor whose positions include the title modifier Clinical or Research and where the appointment percentage is greater than zero; or Permanent other academic staff (non-tenured faculty) with the exception of Postdoctoral Research Associates. Eligible positions include Lecturer, Instructor, Clinical Associate, Teaching Associate, and Research Associate, where the appointment percentage is greater than zero. Under the VRP, SURS retirement-eligible means you may commence a SURS retirement benefit by satisfying one of the following age and service requirements as of your voluntary separation date: (i) (ii) (iii) Age 55 with 8 or more years of service credit; Age 62 with 5 or more years of service credit; or 30 or more years of service credit. Your years of service credit will be determined by SURS. More information regarding SURS retirement and service credit can be found at http://www.surs.com/homepage.surs. 2
INELIGIBILITY All other employees are ineligible, including but not limited to, the following groups: (i) (ii) (iii) (iv) Probationary/tenure-track faculty or faculty on Q tenure status, Medical or Veterinary Residents or Interns; Postdoctoral Research Associates; or SURS retirement annuitants. In no event will any eligible employee who participates in the VRP be eligible for more than one Urbana Campus or other University of Illinois-sponsored severance plan, policy or program. VRP APPLICATION PROCEDURE The application period for the VRP begins on February 3, 2010, and ends on April 2, 2010. Applications submitted later than midnight on April 2, 2010, will not be considered. To apply for the VRP, you must complete and submit an on-line application form at http://www.shr.illinois.edu/vrp.htm. When you complete the on-line application form, please indicate the date you wish to separate employment. An attempt will be made to honor your request; however, in limited circumstances, the date may have to be modified in order to accommodate your Unit s needs. The date you separate from employment with the Urbana Campus is your voluntary separation date. In any event, your voluntary separation date must be no later than August 15, 2011. If you complete and submit the on-line application form, you are indicating that you desire to voluntarily separate employment with the Urbana Campus in exchange for the VRP payment and other consideration described herein. While it is the intention of the Urbana Campus to allow as many eligible employees to participate in the VRP as possible, the Urbana Campus reserves the right to deny participation to eligible employees if it is determined that an application does not meet the goals of the Urbana Campus. Applications will be reviewed based on the following criteria: (i) (ii) (iii) Unit s budget; position s funding source; and Unit s operational needs. Receipt of applications will be acknowledged electronically. You may withdraw your application form at any time before you submit an executed Separation Agreement described below. To withdraw your application, you must complete the on-line withdrawal form at http://www.shr.illinois.edu/vrp.htm. A withdrawal sent by facsimile, mail, or other means will not be accepted. The timing requirements for the Separation Agreement are discussed below. 3
Following the period of review, on or about April 23, 2010, you will be notified whether or not your application has been approved. If approved, your notification will include instructions on where to pick up your Separation Agreement. VRP PAYMENT Each eligible employee who has been approved, executes and does not later revoke a Separation Agreement will receive a lump-sum payment equal to 50% of his/her annual base salary as of April 2, 2010, up to a maximum amount of $75,000, less required deductions. It is anticipated that payments will be made within forty-five (45) days of the employee s voluntary separation date. However, no VRP payment will be made before the seven (7) day revocation period for the signed Separation Agreement described below has passed. All legally required taxes, other withholding, and any sums owed to the Urbana Campus will be deducted. The VRP payment does not count as earnings for SURS purposes and is, therefore, not eligible for SURS contributions. OTHER CONSIDERATION A. Potential Post-Retirement Activities The Urbana Campus may agree to additional provisions such as potential involvement in postretirement research or instructional activities or access to lab, office or studio space. Such provisions, if any, may be set forth in an addendum to the Separation Agreement and approved accordingly. B. Restoration of Furlough/Voluntary Pay Reduction Additionally, each employee who has been approved, executes and does not later revoke a Separation Agreement and who is also subject to the interim furlough policy or voluntary pay reduction program announced in January 2010, will have the reductions in his/her pay related to those actions restored. INFORMATION REGARDING OTHER BENEFITS Accrued and unused vacation and compensable sick leave payments due to an employee at the time of separation from the Urbana Campus shall be paid in accordance with those established policies, plans and procedures. Any other pay and benefits (health, dental, etc.) will terminate or cease upon separation in accordance with the terms of those established laws, policies, plans and procedures. For more information, please refer to: https://nessie.uihr.uillinois.edu/cf/index.cfm FORFEITURE OF TENURE AND NOTICE RIGHTS Tenured faculty relinquish their indefinite tenure status upon their voluntary separation date. Other academic staff with notice of non-reappointment rights will relinquish said rights upon their voluntary separation date. 4
INFORMATION TO BE FURNISHED Employees who apply, upon request, shall furnish to the Urbana Campus such documents, data or other information as the Urbana Campus considers necessary for the purpose of administering the VRP. SEPARATION AGREEMENT WITH WAIVER AND RELEASE If your application is approved, you will receive an individual Separation Agreement for your review and signature. You must hand deliver or mail via US Postal Service your signed Separation Agreement to the Campus Human Resources Office on or within forty-five (45) calendar days of the receipt of your Separation Agreement. Separation Agreements that are mailed must be postmarked no later than forty-five (45) days from the date you received your agreement. Separation Agreements must be hand-delivered or mailed via US Postal Service to: Academic Human Resources Voluntary Retirement Program 807 S. Wright Street, Suite 420 Champaign, IL 61820 You must return your signed Separation Agreement on or within forty-five (45) calendar days of receipt of your Separation Agreement or your application will be automatically withdrawn. An approved employee may revoke a submitted Separation Agreement on or within seven (7) calendar days of the date the agreement is executed. Revocations must be hand-delivered or mailed via US Postal Service to: Academic Human Resources Voluntary Retirement Program 807 S. Wright Street, Suite 420 Champaign, IL 61820 Revocations sent by any other delivery method will not be accepted. All revocations must be received or postmarked as outlined above in order to be accepted. If you do not revoke your submitted Separation Agreement on or within seven (7) calendar days of the date the agreement is executed, your employment will end on your voluntary separation date and payment will be made in accordance with the VRP and the Separation Agreement. RECOMMENDATION OF ATTORNEY REVIEW Eligible employees are advised to contact an attorney at their own expense to discuss the VRP and to review the Separation Agreement if they so desire. 5
FUTURE EMPLOYMENT AT THE UNIVERSITY OF ILLINOIS The University of Illinois shall not be under any obligation to consider future employment for any employee who separates employment under the VRP. Eligibility to return to employment with any unit of the University of Illinois will be in accordance with current guidelines on employment of retirees. Employees approved for VRP who subsequently accept a different position within the University of Illinois prior to their voluntary separation date will have their agreement rendered null and void. NO ASSIGNMENT OF VRP PAYMENTS Under no circumstances may a VRP payment be subject to assignment, garnishment, lien or other encumbrances, and any attempt to cause any such payments to be so subjected shall not be recognized, except to such extent as may be required by law. MAXIMUM PAYMENT The lump sum payment described above is the maximum VRP Payment made available by the Urbana Campus in the event an eligible employee s application for voluntary separation from employment is approved. The VRP payment available may be coordinated with and reduced by the amount of any benefits related to the employee s disability benefits or any temporary total, temporary partial, or similar benefits based on a worker's compensation claim to the fullest extent permitted by law. The Urbana Campus in its absolute discretion reserves the right to offset any benefit described above, but in no event will VRP payment be equal to or less than five hundred dollars ($500.00) which shall be deemed pay in consideration for the Separation Agreement. RECOVERY OF VRP PAYMENTS MADE BY MISTAKE An eligible employee shall return to the Urbana Campus the VRP payment or other consideration, or portion thereof, made by a mistake of fact or law or paid contrary to terms of the VRP. REPRESENTATIONS CONTRARY TO THE VRP No employee, officer, director or agent of the Urbana Campus has the authority to alter, vary or modify the terms of the VRP, except by means of an authorized written amendment to the VRP approved by the Associate Provost for Human Resources. No verbal or written representations contrary to the terms of the VRP and its written amendments shall be binding upon the Urbana Campus. 6
NO EMPLOYMENT RIGHTS OR CONTRACT The VRP shall not confer employment rights upon any person. Nothing contained in the VRP will be construed as a contract of any kind between the Urbana Campus or any related entity and any person. No person shall be entitled by virtue of the VRP to remain employed by the Urbana Campus and nothing in the VRP shall restrict the right of the Urbana Campus to terminate the employment of any eligible employee. Approved employees who are subsequently terminated by reason of unacceptable performance or because of a violation of one of the University or Illinois laws, rules, or policies will not be entitled to any payment or other consideration under the VRP. APPLICABLE LAW The VRP shall be governed and construed in accordance with the laws of the State of Illinois, without reference to its conflicts of law provisions. SEVERABILITY If any provision of the VRP is found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or other controlling law, all of provisions of the VRP shall continue in full force and effect. NONDISCRIMINATION STATEMENT The Urbana Campus will not engage in discrimination or harassment against any person because of race, color, religion, sex, national origin, ancestry, age, marital status, disability, sexual orientation including gender identity, unfavorable discharge from the military or status as a protected veteran and will comply with all federal and state nondiscrimination, equal opportunity and affirmative action laws, orders and regulations. This nondiscrimination policy applies to admissions, employment, access to and treatment in the Urbana Campus programs and activities. AMENDMENT OF THE VRP The VRP may be terminated or amended in any respect at any time at the discretion of the Associate Provost for Human Resources. Notwithstanding the foregoing, no amendment of the VRP may reduce the VRP payment or other consideration previously provided under the VRP. END OF THE PROGRAM The VRP will terminate when all payments described herein have been provided. 7
QUESTIONS REGARDING THE VRP This program is being administered by the Associate Provost for Human Resources, 601 East John Street, 217 Swanlund Administration Building, Champaign, Illinois 61820. The Associate Provost for Human Resources shall have the discretionary authority to determine eligibility for the VRP payment and other consideration and to construe the terms of the VRP, including the making of factual determinations. The decisions of the Associate Provost for Human Resources shall be final and conclusive with respect to all questions concerning the administration of the VRP. Questions or concerns regarding this program should be directed to Sandy Jones, sjjones@illinois.edu, 217.333.6747. DISPUTES REGARDING THE APPLICATION OF THE VRP If for any reason you dispute or disagree with the application of the VRP to your situation, please contact the Associate Provost for Human Resources in writing by hand-delivery or US Postal Service at the address set forth above. The Associate Provost for Human Resources will attempt to resolve any disputes. In order to be considered, any dispute or disagreement you may have must be hand delivered or postmarked not later than thirty (30) calendar days from the date of the occurrence of the matter giving rise to dispute or disagreement or within thirty (30) calendar days after you, through the use of reasonable diligence, could have obtained knowledge of the occurrence of the matter giving rise to the dispute or disagreement. Written disputes or disagreements sent by facsimile, electronic mail, or campus mail will not be accepted. 8