Voluntary Early Retirement Incentive

1. What is the Voluntary Early Retirement Incentive (VERI) and the eligibility criterion for the benefit?

WSU will make a one-time payment cash payment to eligible WSURP retiring employees. 

To be eligible for the VERI payment, you must:

• Be a current member of the WSURP, with the plan vendor being TIAA
• Be at least 55
• Have at least 10 years of services with WSURP.  A year of service equates to at least a 9 month appointment during a calendar year.
• Must be on at least a 50% FTE 
• Be on a permanent appointment.  Individuals on fixed term appointments or contract appointments will be reviewed/considered for possible eligibility.

2. I do not meet the VERI eligibility criterion.  Is there another option that may be something I could pursue?

For WSURP participants, no, nothing else is currently being considered as an incentive. You are still able to see if you are eligible to retire without an incentive. For example, WSURP participants who are 62 or older, are eligible to retire regardless of their years of service.

For DRS participants, WSU is investigating an offer, that will need to be approved by the Office of Financial Management (OFM), if pursued.

3. What retirement plan is the WSURP?

The Washington State University Retirement Plan (WSURP) is the defined contribution 403b plan offered primarily to faculty and administrative professional employees, with some civil service being grandfathered into the plan.  Historically this plan may have been referred to as the TIAA plan.  However, TIAA is the current vendor WSU uses to administer the plan, not the plan itself.  

4. Will participants of one of the Department of Retirement Systems (DRS) plans be offered an early retirement incentive? 

WSU is investigating if we can offer an early retirement incentive to DRS participants.  That option must be approved by the Office of Financial Management (OFM), who is not reviewing such requests until the current state budget is finalized. 

DRS plans offered at WSU include PERS, TRS and LEOFF.

5. What is the value of the retirement incentive? 

The VERI payment equates to the value of one week of the employee’s annual base salary multiplied by the number of years of WSURP service, not to exceed 20 years total (less deductions required by law)

                9-month position salary is calculated as of May 15, 2025         

                12-month position salary is calculated as of July 15, 2025

Example 1:  9-month position, 100% FTE, $137,500 base salary as of May 15, 2025, with 15 years of service:

$137,500/39 weeks of service in a 9-month academic year  = $3,526

$3,526 x 15 = $52,890

Example 2:  12-month position, 100% FTE, $165,000 base salary as of July 15, 2025, with 18 years of service:

$165,000/52 weeks in a 12-month year = $3,173

$3,173 x 18 = $57,114

Example 3:  12-month position, 50% FTE, $82,500 (50% of 165,000 FT base salary) as of July 15, 2025, with 30 years of service:

$82,500/52 weeks in a 12-month year  = $1,586.54

$1,586.54 x 20 = $31,731

6. How will the incentive payment be dispersed?

The incentive payment will be dispersed as a lump-sum payment and is subject to all applicable taxes and deductions. 

WSU cannot provide tax advice on this payment.  You will need to seek the advice of a professional tax advisor to address any questions you have in this regard.

This payment will not be eligible for contributions to the WSURP, nor can payments be deposited into the voluntary retirement plans since these funds are not identified as eligible compensation under the WSURP, DCP and VIP plans. 

If you are eligible for annual leave payout however, those funds could be processed as DCP or VIP contributions.

7. When do I need to let the university know I wish to pursue the retirement incentive, and when do I need to retire by?

Eligible employees who wish to retire and receive the retirement incentive payment must request a personalized application from WSU Human Resource Services Benefit Services unit as soon as June 9, 2025 and no later than July 3, 2025 (the application must be submitted to HRS no later than July 3, 2025).  The retirement date must be effective no later than August 31, 2025.

8. If I already submitted a letter of retirement or am participating in a Phased Retirement Agreement, can I still participate in VERI?

No.  Employees who prior to the adoption of VERI had already submitted their notice of retirement or who have an agreement (such as a Phased Retirement Agreement) that identifies a retirement date, are not eligible for the incentive.

An exception would only be considered if the cost savings to WSU of accelerating the retirement date exceed the amount of the incentive.  These exceptions would be reviewed for possible approval by the Provost and Executive Vice President and facilitated by HRS Benefits.

9. If I retire under VERI, will I be able to return to work with WSU in the future?

Employees who receive this incentive are not able to return to work (RTW) at WSU within 5 years, at any capacity, unless under exceptional circumstances which will be reviewed by the President or Provost.  Such requests should be submitted to HRS Benefits who will facilitate the review.

The most a retired WSURP participant is allowed to work, if after the 5-year period or an exception to return early is granted, is limited to 40% and must go through the retire-rehire review process identified in the Retire-Rehire Guidelines.

10. Am I limited in seeking employment with an employer other than WSU?

No.  You are not restricted from seeking employment with any employer other than WSU.

11. Will I be eligible for unemployment compensation if I retire under VERI?

No. Your status with the university will be retirement, which makes you ineligible for unemployment compensation. 

12. Will Central Administration be responsible for paying the incentive?

The area will pay the incentive amount and then use accruals to recoup the funds before the position is abolished. This gives the area maximum flexibility to abolish several positions and then reallocate internally.

All questions associated with the funding of the incentive should be directed to the WSU Budget Office, 509-335-9681.

13. Do I have the ability to tax-defer any of the incentive payout?

No.  The gross amount will be paid as taxable income and will not able to be processed into a tax-deferred program. 

However, if you are eligible for annual leave payout (ALP), you could contribute those funds, up to the IRS maximum level, into the DCP and/or VIP accounts, on a pre- or post-tax basis.  ALP is subject to FICA taxes; it is the federal income taxes that could be deferred. For more information about voluntary investment plans, visit hrs.wsu.edu/employees/benefits/retirement-information/vips/  

14. Why is the incentive be offered during the summer, when most faculty may not be on a paid appointment and may not be monitoring their WSU email or WSU Communications?

In order to address Fall semester course coverage and student needs, WSU needs to know and be able to plan for faculty vacancies that may occur under VERI participation.

Also, as part of the budget process, knowing how many people may participate in VERI will be of value to colleges and areas as they review their budgets and make their final budget decisions.

15. Will there be VERI presentations reviewing eligibility criteria, the incentive payout, the application process as well as general retirement information?

Group retirement sessions are scheduled for the following dates, via Zoom – Meeting ID: 812 058 2016. A recorded session is also available.  

June 9, Monday, 1:00 – 2:30 p.m.

June 17, Tuesday, 1:00 – 2:30 p.m.

June 23, Monday, 9:30 – 11:00 a.m.

July 2, Wednesday, 1:00 – 2:30 p.m.

HRS strongly recommends attendance at one of the informational sessions prior to making individual inquiries to HRS Benefits.

16. If after attending an informational session, I still have questions, who should I contact?

If after attending a session, scheduled identified in No. 15, you still have questions, call HRS Benefit Services at (509) 335-4589 or email hrs.benefits@wsu.edu.

Due to the volume of possible inquiries about VERI, HRS may not be able to accommodate unscheduled walk-ins. HRS strongly recommends attendance at one of the informational sessions first, or watching the on-demand option. 

17. If I want to retire under VERI, what are my next steps?

Personalized applications for VERI will be available beginning June 9, 2025 and must be returned by July 3, 2025. To request an application call Human Resource Services at (509)335-4589 or email hrs.benefits@wsu.edu. Please provide your possible retirement date in the email, which will be used to run the projected VERI payment. This request is not consider your actually application — it is being provided to help you determine if you wish to proceed.

Note: If you wait until July 3, 2025, to request an application, you will need to fill out and submit the application that same day since this is the deadline for applying.

18. Is there a resource that helps me know what I need to be addressing if I request and am approved for VERI?

The VERI Retirement To-Do List. is a checklist that will provide you with additional information on contacting TIAA regarding how you can draw your retirement funds, information on retiree Medical/Dental/Vision care options through the State of Washington, the sick leave VEBA benefits (for eligible employees), and how to pursue Medicare benefits, if applicable.

These benefits will also be discussed during the presentations, and you are strongly encouraged to attend or view on-demand.

19. Will another incentive be offered after Summer 2025?

To be determined.

20. Will my department/college/area be contacted about my request and be part of the VERI process?

Yes. Upon receipt of a VERI application, HRS Benefits will inform your management, requesting their approval/denial of your application. If approved, they will be responsible for addressing the funding of the incentive, and also entering your retirement separation in Workday as part of the normal Workday processes.