On Friday January 28 your UFE negotiating team reached an agreement with the College on a Memorandum of Understanding (MOU) for the Voluntary Retirement Incentive Program for Faculty. On Tuesday February 1, your UFE Stewards Council considered the MOU and ratified it unanimously.
Central features of the Voluntary Retirement Incentive Program include a lump sum payment in the amount of $30,000 for eligible faculty members (permanent status) and the option of using the lump sum to pay for continuing health care premiums through the Health Care Authority. See excerpts below:
Eligibility and Strategic Targeting
This program is offered to employees who are members of retirement plans administered by the TIAA-CREF. An eligible employee:
1. must be a current member of The Evergreen State College TIAA-CREF plan;
2. must have been a member of The Evergreen State College TIAA-CREF plan for at least ten (10) years;
3. must be 55 years of age or older before the effective date of retirement; and
4. begin receiving a retirement payment as a result of your retirement if under 62 years of age; and
5. separate from The Evergreen State College employment no later than June 30, 2011.
Incentive Amount and Method of Payment: The retirement incentive is a lump sum payment in the amount of $30,000. The retirement incentive payment is subject to income tax and social security tax but not considered income for purposes of calculating retirement benefits.
Participating employees are encouraged to consult with TIAA-CREF for information regarding their retirement account; a tax advisor to determine their individual after tax benefit and effect; a financial planner; and/or their attorney,
Health Care Payment as Incentive: The retiring faculty employee can elect to use the lump sum payment to pay for continuing health care coverage. The employee can send the full amount of the incentive payment to the Health Care Authority (HCA), or the employee could elect to split the incentive payment, receiving a portion of the incentive as cash payment with the remainder deposited into an account at the Health Care Authority. The HCA would credit the cost of the employees health care premium against that account. The number of months of coverage would depend on the amount deposited, and the cost of the health care premium.