Voluntary Separation Incentive Program (VSIP)

No. Non-faculty employees in their introductory period or non-benefited (wage/hourly) employees are not eligible for this program. Additionally, at-will employees as defined in USU Policy 3305: Employment-at-Will and employees who have received notice of involuntary separation for misconduct or poor performance are not eligible to apply.

No.

No. During the VSIP window the only options available for employees to apply for are those approved by the Interim President (listed above).

Participation in this program is not an entitlement and is subject to approval by the employee's respective Dean/VP. To be considered and approved for the VSIP, the employee's separation must either financially support the University's budget reduction requirements or create strategic opportunities for the University. Factors impacting approval may also include, but are not limited to, workload, department budget, operational needs, ability to fill position, and future plans within the college.

Applications will be considered based on the date the application is received and are subject to the respective Dean/VP's approval. As colleges may not be able to accommodate all VSIP requests due to funding availability or the potential impact on productivity, eligible employees are encouraged to apply as soon as they determine they would like to apply for a VSIP option (e.g., It is possible an employee who applies earlier may be approved, but an employee who applies later may not due to budgetary or service impact standpoint). Once an employee is approved for a VSIP option, Human Resources will work with the college to develop the voluntary separation agreement for the employee and Dean/VP to sign.

No. Applying for separation under this program is strictly a voluntary action on the part of an employee.

Questions regarding unemployment compensation should be directed to the Utah Department of Workforce Services which makes decisions regarding eligibility for unemployment. It is not the intent of this program to automatically disqualify an employee for applying for or being awarded unemployment benefits.

One-time cash incentive amounts will be based on the annual budgeted base salary (or weekly in Option F) in effect at the time the employee signs the agreement. Annual salary does not include other forms of compensation such as Extra Service Compensation (ESC) or summer months.

For options that include Early Retirement, the early retirement incentive annual salary will be the definition used in USU Policy 3113: Early Retirement Incentive Program which is "calendar year gross earnings for the most recently completed calendar year (i.e., as of December 31 of the prior calendar year)."

One-time cash incentives will be paid within 60 days of separation (with the exception of a Phased Retirement incentive which must be paid at the end of the phased retirement period). Cash incentives will be taxable and subject to applicable withholdings.

Cash incentives granted as part of a separation agreement are not considered compensation under retirement plan definitions. Therefore, cash incentive payments will not receive a retirement contribution under an approved VSIP.

Any service that an employee earns as a benefited-employee and that is reflected in their Adjusted Hire Date in Banner will be used to determine years of service. Time in non-benefited-positions does not count toward years of service (e.g., Adjunct time or wage/hourly) for benefit eligibility purposes. Years of service will be calculated as of the effective of separation for purposes of eligibility. Fractional years will be used for purposes of determining eligibility under Early or Phased retirement (but no rounding to whole years). Only full years will be used for Option F (i.e., no fractional years, only whole).

Your age as of July 1, 2025 will be used for purposes of eligibility. Fractional years will be used for purposes of determining eligibility under Early or Phased retirement (but no rounding to whole years).

Once a VSIP agreement is signed, USU Finance and Administrative Services will work with the respective Financial Officer to transfer funds immediately to central. This will include a 4% inflationary amount for each year of medical "bridge" approved beyond FY26.

The intent of the medical insurance "bridge" (which may include medical and/or dental coverage) is to provide coverage until the employee becomes Medicare eligible. The employee's separation agreement will specify when "bridge" coverage will end which will typically be the end of the month prior to the month in which the employee turns age 65.

Additionally, employees may want to review USU Policy 3106: Continuation of Coverage for additional options related to insurance (at COBRA rates) to see how it compares to the cash incentive.

The intent of the medical insurance "bridge" (which may include medical and/or dental coverage) is to provide coverage until the employee becomes Medicare eligible. Colleges have discretion to permit the employee's spouse and/or dependents on coverage at the time of separation to be covered under the medical insurance "bridge" if it helps them achieve the goals of the VSIP.

Employees with approved VSIPs will separate from USU effective June 30, 2025 and begin their approved, applicable separation and any corresponding incentive payments with the exception of those who elect a phased retirement option. Employees approved for a phased retirement option can work with their respective Dean/VP regarding the effective date of their agreement which must end no later than June 30, 2028. All VSIP agreements must be in effect no later than July 1, 2025 to meet budget requirements.

No.

Employees who have signed separation agreements prior to March 17, 2025 are not eligible for this VSIP, but their separation agreements will be honored as signed. Employees who were contemplating full, early, or phased retirement, but who have not yet signed an agreement may apply for this VSIP.

Employees who submitted their resignation prior to the VSIP announcement from Interim President Smith on March 7, 2025 are not eligible for the VSIP regardless of when their resignation is effective.

You must still submit an application for the VSIP; however, voluntary FTE reductions can be approved by the Dean/VP with existing Employee Personnel Action Forms (EPAFs) processes in Banner. Employees who are approved for a voluntary FTE reduction need to remember that changing FTE may affect eligibility for USU benefits and/or premiums.

While signing a VSIP does not automatically bar an employee from being considered for rehire at some point in the future, the intent of the program is to meet budget reduction requirements so there is no expectation of re-employment in the same department for a period of at least two years upon approval of a VSIP. It is possible that an employee may be re-employed in another department if a position becomes available and the employee is otherwise qualified and eligible for re-employment. There are various rules that apply depending on an employee’s circumstance, so such questions should be directed to Human Resources for handling before an employee who has signed a VSIP can be considered for rehire.

Nothing in the VSIP is intended to limit any status or access otherwise accessible under early or full retirement. The policy and approval process for Emeritus Faculty can be found in USU Policy 4000.6: "At the time of retirement and upon recommendation of the president and the approval of the Board of Trustees, faculty members may be awarded the honorary rank of Emeritus preceding their final academic rank." Membership to USU Emeriti Association is available to retired USU faculty and staff.

It is unclear what the future holds, but we know that with forthcoming state budget cuts and uncertainty around federal research grants (which fund graduate research assistantships), USU's budget will likely become even tighter in the next few years. There is no guarantee regarding future voluntary or involuntary separations. If employees are contemplating a voluntary separation, they are encouraged to consider doing so during this approved program. If budget reduction targets are not met through the VSIP program, then USU will consider additional actions which may include reductions in force.

After this limited, one-time opportunity, access to existing early and phased retirement programs may be severely restricted. The future of early or phased retirement programs is uncertain once this window closes. If employees are contemplating a voluntary separation, they are encouraged to consider doing so during this approved program.

Approval for VSIPs are at the discretion of the respective Dean. The Dean and Provost may waive or alter the service requirement for a faculty returning from sabbatical if it meets the strategic interests of the University.

Once a VSIP agreement is signed, the position and associated salary dollars will be transferred to central administration. Backfilling these positions is generally not allowed. Any request for backfill will only be considered in exceptional circumstances and must be recommended by the respective Dean or VP to the Office of the Provost and the Office of the President for review and approval.

Deans/VPs may choose to approve soft-funded VSIPs, but those salary dollars will not count toward the required budget cuts. For partially soft-funded positions approved for VSIP, the appropriated salary dollars and proportional FTE will be pulled to central on 7/1/25. Departments will be responsible to fund any one-time cash incentives. Departments may backfill soft funded positions without any special approval.

Call the HR Solutions Center at (435) 797-0122

Email hr@usu.edu or hrbenefits@aggies.usu.edu