Voluntary Retirement Incentive Program
Austin Peay State University is offering a one-time voluntary retirement incentive program (VRIP) targeted at retirement eligible employees who meet program criteria. The program was identified as a Level 2 Savings option by the University's 2020-21 Financial Planning Taskforce and announced to the campus on October 29, 2020. A summary of the program is below or you can review the VRIP Plan Document for additional details.
Employee Eligibility
The Voluntary Retirement Incentive Program (VRIP) is applicable only to an Eligible Employee. An “Eligible Employee” is a staff employee who meets the criteria defined below as of March 31, 2021 or a faculty employee who meets the criteria defined below as of May 31, 2021:
Eligibility Criteria
- Actively employed with at least ten (10) years of service in a regular, full-time or regular part-time position at the University and
- in an appointment that is associated with the expectation of continuous employment at the institution.
- TCRS Members must 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 be 55 years of age.
And not….
- in a grant-funded position that prohibits participation
- employed in an excluded function
- covered under any of the conditions of ineligibility outlined in the program document.
Program Timeline
| Program Step | Date |
| Review and Application Submission Period | 11/2/20 – 11/20/20 |
| Application Deadline | 11/20/20 |
| Application Revocation | 11/30/20 |
| VRIP Participants notified of acceptance | 12/4/20 |
| Notification to Dept./Unit Head | 12/4/20 |
| Waiver/General Release Agreement deadline |
1/20/21 |
| Revocation of Waiver/General Release Agreement | 1/27/21 |
| Voluntary Separation Date for Staff VRIP Participants | 3/31/21 |
| Voluntary Separation Date for Faculty VRIP Participants | 5/31/21 |
| VRIP Payment to Staff Participants | 4/30/21 |
| VRIP Payment to Faculty Participants | 6/30/21 |
Severance Pay
Each participant who executes and does not revoke a Waiver and Release Agreement will receive the following for severance pay:
Amount Equivalent to 40% of Annual Salary
- A service payment of 40% of the current annual salary of the employee as of the Voluntary Separation Date.
Amount Equivalent to 2020-21 Longevity Payment
- If a participant has not received their annual longevity payment for this fiscal year, they will also receive an amount equivalent to his/her 2020-21 longevity payment based on their years of creditable State of Tennessee service as of his/her 2020-21 longevity date. This amount will be calculated according to APSU Policy 5:037 Longevity Pay.
For those eligible to receive severance pay, the University shall pay severance pay in a lump sum by April 30, 2021 for Staff and by June 30, 2021 for Faculty. The University shall deduct from severance pay all legally required taxes, other withholding, and any sums owing to the University.
If a Participant who has signed the Waiver and Release Agreement dies before receiving all of the severance pay, the University shall pay the remainder to the deceased employee’s beneficiary or estate.
Application Submission
If an employee is an eligible employee, he/she may apply to participate in the VRIP by (i) signing the VRIP application form indicating that he/she elects to voluntarily separate from employment with the University and obtain severance pay, and (ii) submitting the signed application form to the VRIP Administrator on or before November 20, 2020. The application will be sent to the employee via DocuSign after the employee submits the web form located on the "Request an Application" tab.
Properly completed application forms must be completed via DocuSign no later than 4:30 p.m. Central time, on November 20, 2020. Any application received after 4:30 p.m. on November 20, 2020 will not be considered. All VRIP applications are subject to the University’s approval.
Revoke an Application
An employee may revoke his/her application form on or before November 30, 2020. The revocation letter must be either delivered to the VRIP Administrator, Office of Human Resources, Austin Peay State University, 601 College Street, PO Box 4507, Clarksville, TN 37044, or e-mailed to benefits@apsu.edu. Revocation letters must be received by the VRIP Administrator no later than 4:30 p.m. Central time on November 30, 2020. If the application form is not revoked by such date and the employee is accepted into the VRIP, then the employee’s employment with the University will terminate as of the Voluntary Separation Date (as defined below).
Revocations sent by facsimile or campus mail will not be accepted. The University will not be responsible for lost mail.
Application Approval
The VRIP Administrator will notify in writing the applicants who meet the conditions of the VRIP and are approved as Participants. An Eligible Employee whose VRIP application is approved shall be considered a “Participant” under the VRIP. The date a Participant terminates employment with the University in accordance with the VRIP will be the “Voluntary Separation Date.” The notification of approval of applications will be postmarked no later than December 4, 2020. The VRIP Administrator will notify in writing each Participants’ department or unit head within seven (7) calendar days after the notification to the appropriate Participant no later than December 4, 2020.
Unless approved otherwise in writing by January 27, 2021, a Participant’s employment with the University shall terminate on March 31, 2021 for Staff and May 31, 2021 for Faculty.
A Participant shall abide by the University’s standards of conduct and satisfactorily perform his/her job responsibilities up to and including his/her Voluntary Separation Date. A Participant whose employment with the University terminates before his/her Voluntary Separation Date for any reason other than in accordance with the terms of the VRIP shall not be eligible to receive severance pay under the VRIP.
Waiver and Release
In order to be eligible to receive the severance pay, the employee must submit a signed Waiver and Release Agreement to the VRIP Administrator no later than 4:30 p.m. Central time, on January 20, 2021. The Waiver and Release Agreement will be sent to the employee via DocuSign simultaneously with the notification of approval of application.
A Participant may revoke the signed Waiver and Release Agreement within seven (7) calendar days of the date he/she submits the signed Waiver and Release Agreement to the VRIP Administrator. Any such revocation must be in writing and received by hand-delivery to the VRIP Administrator, or by e-mail to benefits@apsu.edu. Any revocation received after the seven (7) calendar day period will not be effective. Revocations sent by facsimile or campus mail will not be accepted.The University will not be responsible for lost mail.
A Participant who timely revokes his/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 VRIP. A Participant who submits a signed Waiver and Release Agreement and who does not exercise his/her right of revocation shall be eligible to receive severance pay.
The application period has closed.
CONDITIONS OF INELIGIBILITY
An employee shall not be eligible for severance pay under the VRIP if the VRIP Administrator determines that any of the following shall apply:
- an employee’s position is in one of the Excluded Functions as outlined below;
- an employee is not or ceases to be an “Eligible Employee” as defined above;
- an employee submitted a retirement notice before October 1, 2020;
- an employee is terminated by reason of unacceptable performance or because of a violation of law, rule, or policy;
- an employee accepts a position in one of the Excluded Functions at the University before their voluntary separation date;
- an employee leaves employment with the University before his/her Voluntary Separation Date or
- the employee has previously participated in a voluntary buy-out at the University or any other State of Tennessee-funded postsecondary institution; or
- the VRIP is terminated prior to its completion.
EXCLUDED FUNCTIONS
The University reserves the right to either decline an application from an employee or extend the Voluntary Separation Date where the employee: 1) performs a critical function for the University; 2) is the only employee performing that function such that the person’s job responsibilities cannot be shifted or replaced; or 3) because of the critical nature of the function that the employee fulfills, there is insufficient time to hire a replacement for the employee without severe damage to the operation of the University; or 4) a method of replenishing the university reserves for the cost of the individual’s buyout cannot be identified. This right to deny an application may only be exercised at the discretion of the President of the University.
RE-EMPLOYMENT RESTRICTIONS
A Participant, for a period of five (5) years from his/her Voluntary Separation Date, may not seek or accept employment in a benefits-eligible position at the University. Any Participant who accepts employment in a benefits-eligible position within five (5) years from his/her Voluntary Separation Date at the University shall immediately be obligated to refund to the University all compensation received as a part of the VRIP.
Frequently Asked Questions
Employees who have documented their intent to retire prior to October 1, 2020 are not eligible to participate.
You can revoke your application until November 30, 2020. If the application form is not revoked by such date and you are accepted into the
VRIP, then your employment with the University will terminate as of the Voluntary
Separation Date.
Please note this is different than the Waiver and Release Agreement. Once you are approved to participate in the program, you will have 45 days to review the Waiver and Release Agreement. You may revoke the signed Waiver and Release Agreement within seven (7) calendar days of the date you submit the signed Waiver and Release Agreement to the VRIP Administrator.
An employee may revoke his/her application form on or before November 30, 2020. The revocation letter must be either delivered to the VRIP Administrator or e-mailed to benefits@apsu.edu. Revocation letters must be received by the VRIP Administrator no later than 4:30 p.m. Central time on November 30, 2020. If the application form is not revoked by such date and the employee is accepted into the VRIP, then the employee’s employment with the University will terminate as of the Voluntary Separation Date.
A Participant may revoke the signed Waiver and Release Agreement within seven (7)
calendar days of the date he/she submits the signed Waiver and Release Agreement to
the VRIP Administrator. Any such revocation must be in writing and received by hand-delivery
to the VRIP Administrator, or by e-mail to benefits@apsu.edu. Any revocation received after the seven (7) calendar day period will not be effective. Revocations sent by facsimile or campus mail will not be accepted.The University
will not be responsible for lost mail.
A Participant who timely revokes his/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 VRIP. A Participant who submits a signed Waiver and Release Agreement and who does not exercise his/her right of revocation shall be eligible to receive severance pay.
Participation in the VRIP shall be on a strictly voluntary basis for all employees
deemed eligible for participation. The choice to apply is entirely up to the employee.
No one at the University may require an employee to apply for or accept or reject
participation in the VRIP. Employees are encouraged to consider the program and determine
whether it is the right opportunity for them.
The existence of the VRIP does not in any way change the employee’s relationship with the University. Employees are free to choose to participate or not to participate. The employee should understand that if s/he is eligible and declines to participate, s/he will not be treated any differently with respect to future terms and conditions of employment from any other similarly situated employee
The University reserves the right to either decline an application from an employee or extend the Voluntary Separation Date where the employee: 1) performs a critical function for the University; 2) is the only employee performing that function such that the person’s job responsibilities cannot be shifted or replaced; or 3) because of the critical nature of the function that the employee fulfills, there is insufficient time to hire a replacement for the employee without severe damage to the operation of the University; or 4) a method of replenishing the university reserves for the cost of the individual’s buyout cannot be identified. This right to deny an application may only be exercised at the discretion of the President of the University.
Staff employees will receive the severance pay (40% of annual salary and longevity pay) on April 30, 2021. If you have any annual leave, it will be paid in accordance with the pay period that contains your voluntary separation date. For example, exempt employee with a voluntary separation date of 3/31/21 will receive their annual leave payout on 3/31/21. Non-exempt employees with a voluntary separation date of 3/31/21 would receive their annual leave payout on 4/23/21.
Faculty employees will receive the severance pay (40% of annual salary and longevity pay) on June 30, 2021. Faculty will receive all deferred pay on their May paycheck.
No. All deferred pay will be paid to faculty members on their May paycheck.
If you are due your longevity payment on or prior to June 30, 2021, you will still receive this payment. Faculty whose anniversary date is the beginning of the academic year and who are otherwise eligible, shall receive their longevity payment in June for the years’ service provided that the entire academic year was served.
If you are staff member and enrolled in APSU’s benefit program, your benefits will
end April 30, 2021.
If you are a faculty member and enrolled in APSU’s benefit program, your benefits will end June 30, 2021.
The form that is needed for continuing the insurance coverage at retirement is available at https://www.tn.gov/content/dam/tn/finance/fa-benefits/documents/1045_2020.pdf. Please send the completed form via email to benefits@apsu.edu.
The lump sum payments (service pay and longevity equivalent pay) received by the participants in the VRIP will not impact the calculation of retirement benefits for those participants who are members of TCRS.
Yes, employees may participate in both programs.
This form is available at www.retirereeadytn.gov under self-service. Please remember that TCRS requests your application to be submitted at least 90 days prior to your last day of work.
Please contact the representative for the company through which your funds are administered to discuss your account and payout options.
Yes, please send a request for a meeting to the Benefits email box at benefits@apsu.edu. You will be contacted to set up a virtual meeting.
For TCRS participants, the sick leave balance will be reported in the employer certification
section of the application, and for every twenty days of sick leave remaining in the
sick balance, one month of retirement service credit will be add for calculation of
your retirement benefit.
Optional Retirement Program participants do not have the service credit benefit based on the remaining sick leave bank balance. These sick leave balances remain on file or may be donated to the sick leave bank.
Spouses of employees having 10 or more years of continuous full-time service within the State system immediately preceding retirement or death are eligible for the fee discount for 5 years from the date of death or retirement of the employee whichever shall occur first.
Dependent children of employees having 10 or more years of continuous full-time service within the State system immediately preceding retirement or death that are age 26 and under are eligible for the fee discount.
Retirees will be eligible to take courses under the Faculty and Staff Tuition Reimbursement Program. A section of APSU Policy 5:001 is below:
- APSU employees who retire with at least 10 years of state service maintain eligibility under this program.
Retirees Below Age 65
https://www.tn.gov/content/dam/tn/finance/fa-benefits/documents/premium_st_ret_21.pdf
Retirees Age 65 or Older/Medicare Eligible https://www.tn.gov/content/dam/tn/finance/fa-benefits/documents/21_tennplan_premium.pdf
Yes, any covered spouse and dependents at retirement are eligible to continue coverage. If the spouse is Medicare eligible, he or she can only continue coverage if the retiree is Medicare eligible.
These documents can be viewed via the VRIP Plan Document. The application is Attachment 1 and the Waiver and General Release is Attachment 2. Both documents will be sent to you via DocuSign at the appropriate time in the process.
Yes, as long as it is approved by the department head and it is not a benefits-eligible position.
Call Retire Ready TN at 1-800-922-7772.
Call Retire Ready TN at 1-800-922-7772.