Note: This website describes the details for the ETSU faculty retirement incentive program. Information for ETSU staff is available on the Staff Voluntary Retirement website.
Voluntary Faculty Retirement Incentive Program
East Tennessee State University
Overview
As part of the university’s initiatives to reduce budgets for fiscal year 2020-2021, the Strategic Options Workgroup has recommended that a Voluntary Retirement Incentive Program be offered to faculty and staff. The program below outlines the incentive for faculty at ETSU.
This opportunity reflects the current needs and resources of the university and may be withdrawn or altered at any time in the future. This one-time, special incentive is offered to eligible faculty who (1) submit an application for participation in the Program no later than September 30, 2020 and (2) will retire no later than December 31, 2020. Faculty members in the Phil and Martha Bachman College of Arts and Sciences who have previously elected to participate in a voluntary retirement incentive program are excluded from participation in this program. Faculty who have submitted their intent to retire before the announcement of the program are not eligible for this incentive.
ETSU may limit the number of participants in this Program and may deny participation of any applicant based on business continuity and campus needs. Approved participants may also be required to delay effective date of retirement based on campus needs. When the number of participants will be limited, approval for participation may be based on years of creditable service, order of applications received, or a phased approach may be utilized as a means to ensure continuity of service.
Whether this, or any other, Voluntary Faculty Retirement Incentive Program will be offered at any time thereafter is entirely at the discretion of East Tennessee State University. However, faculty members should not anticipate that this, or any other, retirement incentive will be available to them after December 31, 2020. Moreover, ETSU reserves the right to discontinue this program at any time before December 31, 2020 at its sole discretion, although it will honor commitments to faculty who have applied and been approved as defined below:
Eligibility
- Full-time, actively employed, state budgeted, tenured/tenure-track faculty member.
- Ten years of employment at East Tennessee State University as of the retirement date.
- TCRS Members must also be 60 years of age and have 5 years of creditable service or be any age and have 30 years of creditable service.
- ORP Members must also be 55 years of age.
- ETSU may choose to exclude or delay the retirement date for certain faculty in key positions or roles from the program.
Program
- Applications must be received no earlier than 8:00 AM on August 15, 2020 and no later than 4:30 PM on September 30, 2020 .
- Academic year (F9) faculty member’s last day worked and relinquishment of tenure will be on December 15, 2020.
- Fiscal year (FA) faculty member’s last day worked and relinquishment of tenure will be on December 23, 2020.
- All faculty members’ official retirement date will be December 31, 2020. Fiscal year (FA) faculty will receive a lump-sum payout of accrued annual leave on January 31, 2021; terminal leave will not be available under this program.
- Faculty member will receive a lump-sum payout equivalent to 40% of the December 31, 2020 base[1] salary on January 31, 2021.
- Faculty members will receive $100 for each year of creditable state service as of December 31, 2020 up to a maximum payment of $3,000. This payment will be in lieu of anticipated longevity payments in 2021, and will be included on the January 31, 2021 payout.
- Participants in this program are not eligible for the Post-Retirement Service Program.
- Participants in this program are eligible for future part-time or adjunct employment[2] up to retirement limits[3].
- Participants in this program may not return to full-time employment at the university
for a period of five (5) years from the date of retirement. Limited exceptions may
be granted by the President.
Application Process
- A faculty member may apply to participate in the program by completing the application form and delivering it to the Office of Human Resources, East Tennessee State University, 1276 Gilbreath Dr., Burgin Dossett Hall, Room 307, Johnson City, Tennessee 37614 no later than 4:30 P.M. on September 30, 2020. Applications may also be scanned and emailed to hr@etsu.edu; the email must contain an image of the application form with the applicant’s signature, and must be sent from the applicant’s ETSU email address. Emails from personal email addresses will not be accepted. Applications sent via email must be time-stamped by the application deadline, 4:30 P.M. September 30, 2020.
- If approved to participate, the faculty member must also sign, return, and not revoke a Voluntary Faculty Retirement Incentive Agreement and a Voluntary Faculty Retirement Incentive Program Waiver and Release form (provided by the Office of Human Resources) within 10 business days of his or her notice of acceptance in the program.
- Once the Voluntary Faculty Retirement Incentive Agreement and a Voluntary Faculty Retirement Incentive Program Waiver and Release form are received in Human Resources, the faculty member will have 7 days to revoke the agreement.
Timeline
- June 19, 2020 – Announcement of Program
- August 1, 2020 - Emails will be sent to eligible faculty from Human Resources
- August 15, 2020 at 8:00 AM - Program opens for applications
- August 15, 2020 – September 30, 2020 – Applications from faculty are accepted
- September 30, 2020 at 4:30 PM - Program closes; no additional applications will be accepted
- October 1, 2020 – October 7, 2020 – Human Resources will meet with Vice Presidents to discuss acceptance of faculty into program
- October 9, 2020 – HR will send notification of acceptance into the program to employees, along with the Agreement and Waiver/Release forms
- October 23, 2020 – All Agreement and Waiver/Release forms must be returned to HR. Faculty will have 7 calendar days from the date the Agreement and Waiver/Release form is signed to revoke their intent to retire
[1] Base salary is exclusive of longevity, stipends, and additional salary for temporary
or additional duties.
[2] Part-time or adjunct employment is not guaranteed.
[3] Pursuant to Tennessee Code Annotated, retirees who are receiving benefits from
the state retirement plans are limited to working 120 days or 900 hours per year.
Forms
Application for Faculty Voluntary Retirement Program (applications will not be accepted before August 15, 2020 at 8:00 AM)
Sample Faculty Retirement Letter
Informational Sessions
Faculty informational sessions: Join Lori Erickson, Assistant Vice President for Human Resources, and Shannon Jarrett, Benefits Manager, for an information session on the Voluntary Retirement Incentive Program.
Wednesday, August 5, 2020 at 9:00am - Register.
Thursday, August 13, 2020 at 10:00am - Register.
Tuesday, August 18, 2020 at 2:00pm - Register.
Wednesday, August 26, 2020 at 3:00pm - Register.
All sessions will be held via Zoom meeting.
Frequently Asked Questions
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Why is this retirement incentive being offered?
The Voluntary Retirement Incentive Program is being offered as part of the University’s strategic plan to reduce budget dollars for fiscal year 2021. -
Who is eligible?
The Voluntary Faculty Retirement Incentive Program eligibility is identified below.
Eligibility
· Full-time, actively employed, state budgeted, tenured/tenure-track faculty member.
· Ten years of employment at East Tennessee State University as of the retirement date.
o TCRS Members must also be 60 years of age and have 5 years of creditable service or be any age and have 30 years of creditable service.
o ORP Members must also be 55 years of age.
· ETSU may choose to exclude certain faculty members in key positions or roles from the program.
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Am I required to participate in the program?
No, the program is voluntary. If an employee believes and/or says that he/she is getting pressure to retire or not to retire, please contact the Office of Human Resources. -
Do employees have to wait until the retirement date or can they leave earlier?
Employees cannot leave earlier and remain eligible under the program. The faculty member’s last day worked will be on December 15, 2020 (F9) or December 23, 2020 (FA) with an official retirement date of December 31, 2020. Fiscal year (FA) faculty will receive a lump-sum payout of accrued annual leave on January 31, 2021; terminal leave will not be available under this program. -
Will there be any change to ETSU’s retirement benefits if I take this offer?
You will be eligible for the same retirement benefits you would have received if you made the decision to retire outside this program. -
Will I be eligible for medical insurance after retirement?
Faculty may be eligible to elect to participate in the Partners for Health retiree medical plan or to purchase the Tennessee Plan Medicare supplement after they retire from ETSU, subject to the rules of that plan. Faculty considering retirement are encouraged to contact a Retirement Specialist at the Benefits Administration regarding your eligibility to continue insurance in retirement by calling (800) 253-9981; select option 2. Additional questions may be referred to the Human Resources Benefits Department at (423) 439-6126. -
What is the retirement incentive?
Faculty member will receive a lump-sum payout equivalent to 40% of the December 31, 2020 base* salary .
Faculty members will receive $100 for each year of creditable state service as of December 31, 2020 up to a maximum payment of $3,000. This payment will be in lieu of anticipated longevity payments in 2021, and will be included on the January 31, 2021 payout.
*Base salary is exclusive of longevity, stipends, and additional salary for temporary or additional duties.
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What resources are available to determine if now is a good time to retire?
Visit the Retire Ready Tennessee website for information on retirement.
Schedule a time to meet with your Retire Ready Tennessee Counselor.
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I have a dependent who will be a student. If I retire under the program, will the benefit for my dependent continue?
Yes. Tuition discounts can continue as outlined in Educational Benefits policy under the Fee Discount for Spouse and/or Dependent Children section. -
How will the accrued balance of sick leave be applied to my retirement?
Sick Leave will be applied based upon the employee’s retirement plan.
- TCRS – balance of sick leave will be credited to TCRS service at the rate of 20 days equals 1 month of service
- ORP – accrued sick leave will be converted to service credit for purposes of continuing insurance in retirement. Balance of sick leave may be donated to the sick leave bank.
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How can an employee verify if he or she is eligible for the Voluntary Retirement Incentive Program?
An email will be sent to eligible participant's ETSU email account on August 1, 2020. A letter will also be mailed to each eligible participant's home address on August 1, 2020. Questions may be directed to the Office of Human Resources. If you feel you are eligible for this program, but did not receive an eligibility email/letter, please contact the Office of Human Resources.
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Will I receive my upcoming longevity payment?
If your longevity dates falls before January 1, 2021 then you will be eligible to receive your longevity payment in the normal month of payment. Additionally, retirees in this program will receive a payment of $100 per year of service in lieu of longevity payments due from January 1, 2021 - December 31, 2021 paid to you in the January 2021 incentive payment.
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Will there be a later opportunity to participate in another retirement incentive program?
There are currently no plans for a future retirement incentive program.
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Can I still receive Emeritus status?
Faculty members will receive Emeritus status if eligible under the Provost’s guidelines. The College will pursue Emeritus status as supported by the faculty member’s department.
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Can sick leave be used to reach 30 years of TCRS service for participation in this incentive program?
No. TCRS participants under the age of 60 cannot use their balance of sick leave to become eligible for the incentive program. However, these employees may still be eligible for retirement with TCRS, outside of this incentive program.
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When will my current ETSU insurance coverage end?
Faculty participants in this program will be given the option to continue their ETSU health coverage through January 31, 2021.
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How will I know if my email application was received?
You will receive a response from hr@etsu.edu acknowledging receipt of your application. Please allow 1 day for response.
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Can faculty donate their sick leave balance upon retirement?
Yes, faculty who are members of the ORP may donate their sick leave balance to the sick leave bank upon their retirement.