The Office of Human Resources is sponsoring informational sessions for the participants of the university's Voluntary Buyout Plan.  The topics of discussion at both sessions will be:

• The retirement process and other related information that will be discussed at your individual meeting with Human Resources. Presented by Tammy Hamm, Office of Human Resources
  
• How Social Security benefits are calculated, earnings limitations after retirement and the online filing process. Presented by Tony Thompson, Social Security Administration

We have arranged two dates and times for the sessions.  This is not mandatory and no pre-registration is required.  We are holding these sessions for informational purposes only.

• May 5, 2009, 2:00 p.m. - 3:00 p.m.,
  Meeting Room 6, D.P. Culp Center
  
• May 13, 2009, 9:00 a.m. - 10:00 a.m.,
  Forum Room, D.P. Culp Center

What do you mean by severance payment equivalent to 6 months of the University's portion of health insurance?
This payment does not pay for insurance continuation or guarantee continuation of heath insurance.  This severance payment is designed to help offset health insurance cost after the Voluntary Separation Date.  This part of the severance payment is paid directly to the participant. 

When will I receive payment for my accrued annual leave and severance payment?
The payments for any (a) accrued but unused annual leave, compensatory time, or worked holidays or (b) accrued salary will be made in a lump sum payment on the Participants’ last regular payroll.  Severance Payment will be made within 31 days from the receipt by the University of the Waiver and Release Agreement. 

Will the severance payment be taxed?
Yes, as required by federal law.  The severance payment is subject to federal taxes withheld at current withholding, as well as Social Security of 7.65%.

Will the annual leave payout be taxed?
Yes, as required by federal law.  The annual leave payout is subject to federal taxes withheld at current withholding, as well as Social Security of 7.65%.

Is the $500 service credit payment of the VBP based on my University years of service or State service?
The service credit payment will be based on years of service at the University.

I am a nine-month faculty member.  When will I receive payment for accrued salary?
Accrued salary for a 9-month faculty will be paid as a lump sum in the final payroll if not paid as regular summer salary.

How is the three-month salary payment calculated?
For hourly paid employees: ((Hourly rate x 1950 hours) / 12) x 3.
For administrative employees: Monthly base salary x 3.
For nine-month faculty: (Annual base salary / 9) x 3.

Can I use the tuition assistance benefit for classes that begin anytime between July 1, 2009 and June 30, 2011 as long as I don't exceed the $10,800?
The tuition assistance benefit is available for eligible classes that begin between July 1, 2009 and June 30, 2011 inclusive.  The tuition assistance may not exceed $5,400 in a fiscal year.

Can I use the tuition assistance benefit to take online courses?
Yes.  Tuition assistance can be used for on-line courses taken through an eligible institution, including RODP.

Can I get the tuition assistance benefit as a cash payout?
No.  There is no cash payout option for tuition.

Can I use the tuition benefit to pay for spouse or children to go to school?
No.  The tuition assistance benefit is non-transferable and therefore can be used only by the VBP Participant.

Can I use the tuition benefit to pay for books?
No.  The tuition assistance benefit will provide funds to be used toward payment of tuition and mandatory fees only.  Books and other fees are not covered.

If I am accepted in the VBP, can I be re-hired by the University?
You may not be rehired in a benefits eligible position, including work as a regular employee, independent contractor, or consultant, with any State of Tennessee public postsecondary institution for a period of five years from the Voluntary Separation Date or participate in the Post Retirement Service Program.

E. Application Process and Revocation

When are applications due, and how do I submit?
Applications must be submitted to the VBP Administrator no later than 4:30 pm on or before May 15, 2009.  You may use either method below to submit the application. 

Personal Hand Delivery to:  Tammy S. Hamm, Associate Director of the Office of Human Resources, and VBP Administrator, Room 307 Dossett Hall, East Tennessee State University, Johnson City, TN 37614,

or

FedEx or UPS addressed to: East Tennessee State University, Attn: Tammy S. Hamm, Office of Human Resources, 100 C.R. Drive, Johnson City, TN  37614.

How can I confirm that my application was received?
If you hand deliver your application, you will receive a date/time stamped copy.  If you mail your application, you may confirm receipt by calling 439-4457.

If there are larger numbers of applications than the plan document outlines, how will they be selected for acceptance?
If more Eligible Employees in an employee type elect to participate in the VBP than the maximum available, applications for Eligible Employees in that classification will be considered by earliest date/time of application received by the VBP Administrator.  The University, however, reserves the right, in its sole discretion, to accept and approve more applications than the maximum available under the VBP.

When will applicants be notified of acceptance for the VBP?
Applicants approved for participation in the program will be postmarked no later than June 1, 2009. 

When will employees who are accepted for the VBP leave University employment?
Unless approved otherwise in writing by June 1, 2009, a Participant’s employment with the University shall terminate on June 30, 2009, or at the conclusion of summer school contract for academic year faculty appointments, or at a time specific as determined by the employee and the employee’s supervisor, but no later than September 1, 2009.  Approved participants who are also eligible for retirement may choose an earlier voluntary separation date. 

What other requirements do I need to attend to for clearing the University? 
All University property (i.e., keys, documents and records, uniforms, identification cards, etc.) shall be returned by a Participant to the University on or before his or her Voluntary Separation Date, along with a check-out form completed by the department and the final completed timecard signed by the employee and supervisor, in order for such Participant to commence receiving severance pay and severance benefits under the VBP.

What is a Waiver & Release Agreement?
By signing the Waiver & Release Agreement, the participant agrees that this separation is voluntary, and he/she will not make claims against the University nor apply for unemployment.

Can I sign and send in my Waiver and Release Agreement early?
No. The Waiver and Release Agreement must be signed and turned in to the VBP Administrator on your voluntary separation date.

What is the process for revoking a signed Waiver & Release Agreement?
A participant may revoke the signed Waiver & Release within 7 days of the date he/she submits the signed Waiver & Release to the VBP Administrator.  It must be submitted in writing and received by one of the methods set forth previously.  A Participant who timely revokes his or her Waiver and Release Agreement shall be deemed to have voluntarily resigned from employment as of the Voluntary Separation Date and will not be eligible to receive any severance pay or benefits under the VBP.

Can I be accepted into the VBP and also retire?
Yes.  If you are eligible for retirement, you may also file for retirement. 

If am accepted for the VBP and retire on June 30, 2009, may I remain on the payroll to exhaust my annual leave?
No.  Participants, including retirees, will receive the payments for any (a) accrued but unused annual leave, compensatory time, or worked holidays or (b) accrued salary will be made in a lump sum payment on the Participants’ last regular payroll. 

I am eligible for retirement, but I don't want to retire unless I am certain I am accepted into the VBP.  Can I wait to file retirement papers until I know for sure if I am accepted into the VBP?
Yes.  You can wait to file for retirement after acceptance into the VBP.  Keep in mind this may delay your retirement benefit from the vendor. 

If I retire and accept the VBP, may I participate in the Post-Retirement Service Program Incentive?
No.  Eligible retiring faculty members may apply to participate in the Post-Retirement Service Program Incentive OR the VBP, but not both.  

Will my sick leave still count toward retirement if I participate in the VBP?
Yes and no, depending upon your retirement vendor.  If you are a TCRS retiree, you will receive service credit for your sick leave.  If you are an ORP retiree, you do not receive service credit for sick leave; however, your sick leave will count towards your service for the purposes of calculating your health insurance continuation premiums.

What if I am not eligible to file for retirement now but will be at a future date?
You may file for retirement at the time once you become eligibility.  TCRS full retirement is 30 years of service or age 60, after a vestment period of 5 years.  ORP retirement is age 59½.  Speak with your retirement vendor for further details.

Will the severance payment and other payouts count towards my TCRS retirement salary credit?
No.  

Will ORP retirement contributions be paid on the severance payment or other payouts?
No.  

I. Insurance Continuation

If I participate in the VBP, how do I continue medical insurance?
Non-retirees: You will have the option to continue insurance through COBRA.  The State of TN Benefits Administration will mail your COBRA enrollment information to your home address.
Retirees under age 65: You will have the opportunity to continue your same coverage at a premium based on your years of service.
For retirees age 65 and over: Your University coverage will end with your employment.  Medicare will become primary coverage.  The State of TN will offer you a Medicare Supplement called the TN Plan.  

If I participate in the VBP, how do I continue dental insurance?
You will have the option to continue insurance through COBRA.  The State of TN Benefits Administration will mail your COBRA enrollment information to your home address.  

If I participant in the VBP, how do I continue life insurance?
For the basic life that is included with the health insurance program, you will be offered a conversion option from the underwriter, Ft. Dearborn.  For optional term and universal life coverage’s, UNUM Provident will offer either conversion options or direct billing options.  You will receive letters from the appropriate companies after your coverage ends with the University.  

If I participate in the VBP, how do I continue long-term care insurance or AFLAC?
You will have the option to continue coverage by direct bill through that company.

If I participate in the VBP, what happens to my Roth, 401(k), 457 or 403(b) account(s)?
After your Voluntary Separation Date, you will have the option to maintain the account(s) with the vendor, roll it over to another qualified account, or take a withdrawal.  Tax penalties may apply.  Please contact the vendor with further questions. 

When will my insurance (health, life, dental) coverage end if I am accepted into the VBP?
Insurance is paid one month in advance and thus extends your coverage until the month after your last payroll from the University.

*Please note: Unless approved otherwise in writing by June 1, 2009, a Participant’s employment with the University shall terminate on June 30, 2009, or at the conclusion of summer school contract for academic year faculty appointments, or at a time specific as determined by the employee and the employee’s supervisor, but no later than September 1, 2009.  Notwithstanding the above, a Participant who is also eligible for retirement benefits under the University’s retirement plan may voluntarily elect to terminate employment with the University before June 30, 2009.