Voluntary Separation Program FAQs

Return to the Voluntary Separation Program II (June, 2020) Details page

Why is this Voluntary Separation Program (VSP) being offered?

Like the April 2020 VSP, the June 2020 VSP is being offered to free resources for reallocation in support of the university’s strategic goals.  The June 2020 program is in response to faculty members who were eligible for and who wished to participate in the earlier program, but were concerned about tax implications of receiving payment in 2020. Like the earlier program this VSP offers eligible faculty members a lump sum payment equal

Who is eligible to request participation in the program?

The VSP is available only to individuals who have completed at least fifteen (15) years of continuous service at UNT on or before August 31, 2020 and who (a) are tenured faculty or (b) are administrators with a tenured faculty appointment.

Why is 15 years of service to UNT required?

UNT wants to recognize tenured faculty, who joined the university in or before 2005, for their extensive service.

Who is not eligible to request participation in the program?

Even if a faculty member is eligible, she or he may not participate in the VSP if she or he:

  • was on faculty development leave between September 1, 2019 and May 31, 2020;
  • is a Principal Investigator (PI) on an external grant or contract that extends beyond September 1, 2020; and, is unwilling to transfer the grant to another qualified individual within UNT or execute the sponsored project as a retired PI (if retirement is applicable) with carrying approval from the department chair and dean to allow continuation of the project;
  • is currently on an approved modified service agreement; or
  • has submitted a notice of resignation or retirement before June 19, 2020

If I am currently on modified service, may I participate in the VSP?

No.

 If I applied for modified service, may I participate in the VSP?

No. If you have applied for modified service and received approval of your request as of June 19, 2020, you are not eligible for this program.

When may I submit my request to participate in the VSP?

If eligible, you may submit your request between Friday, June 19, at 8:00 a.m. and 5:00 p.m. Thursday, August 20, 2020.  Requests received in the Provost’s Office after 5:00 p.m. on August 20, 2020 will not be considered.

How do I request to participate in the program?

If eligible, you must complete two documents:  a UNT Request to Participate in the Voluntary Separation Program form; and a Voluntary Separation Program Agreement and Release of Claims.  You will have to complete both documents in their entirety, and sign and date them, before sending both documents to the Provost’s Office during the application period.  These documents have been included in the announcement packet and also can be found on the Provost Office website at http://vpaa.unt.edu/vsp.htm.

Do I have to be eligible to retire in order to participate?

No. The VSP is not a retirement program.  You do not have to retire in order to participate, but, you may do so if you are eligible.  The last day of employment must be August 31, 2020.

Will participation in the VSP help me retire early?

No. This program does not change retirement eligibility criteria.

Will the payment count toward my retirement?

No. The VPS payment is not considered “earnings.” Therefore, retirement will not be deducted from the payment and the university will not make an employer contribution toward your retirement.

When will I be notified if I am accepted in the program?

If your request is accepted, you will be notified no later than August 24, 2020.

How much is the incentive payment under the program?

The lump sum payment is equal to one (1) year’s annual base pay as stated in your UNT faculty salary notice for fiscal year 2020.

How much of the incentive payment will I receive?

All federal and state taxes will be withheld as required by law.  The VSP payment does not qualify as “earnings” for retirement purposes.  Therefore, no employee retirement, insurance or voluntary deductions will be withheld from the payment.

When and how will I receive payment?

The payment will be made between January 1 and March 15, 2021. It will be paid in the same manner as the last regular paycheck you received, e.g. via electronic funds transfer/direct deposit.

 How will faculty members be selected once the requests are submitted?

The university will consider the applicant’s desire to separate as well as the needs of the university.  Selection must result in a net benefit to the university as determined by UNT and funds must be available. For instance, requests will not be approved if doing so would hamper a department or college’s/school’s ability to offer a program, or, the expense incurred to deliver the program is greater than the lump sum payment. Or, if multiple faculty members from a single program apply and approving both request would negatively affect the department’s ability to offer the program, the faculty member whose request was received first would be selected.

What should I do if I change my mind about participating in the VSP after submitting an application?

If you change your mind about participating in the VSP, you must send a written statement of revocation to the Provost Office no later than seven (7) calendar days from the date you submitted your request and Voluntary Separation Program Agreement and Release of Claims.   The statement must express your desire to revoke the separation agreement and you must sign and date the statement.  Electronic signature is permissible.  The statement must be sent via e-mail to Bertina.Combes@unt.edu by the deadline.  The Provost Office will confirm receipt of revocation via email to address you noted on the request form.

When may I end my employment?

If your request is approved, you must separate employment with UNT on August 31, 2020.  The program has been designed to comply with federal tax laws regarding deferred payments employers make to former employees, so the separation date cannot be changed.

 If I have opted to spread my nine-month salary over 12 months, what will my effective separation date be?

Your separation date must be August 31, 2020.  Benefits coverage will remain in effect through August 31, 2020.  Amounts reserved for summer payments will continue as normal, and include deductions for insurance premiums.  

May I delay receipt of all or a portion of the voluntary separation lump sum payment until the next tax (calendar) year?

No.  The funds will be paid in one lump sum between January 1, 2021 and March 15, 2021.

Will I have to pay taxes on the VSP payment?

Yes. The payment made under this program is subject to federal income tax withholding and other appropriate federal taxes.

May I tax shelter the VSP lump sum amount?

No. The VSP payment is not considered earnings, so contributions cannot be sheltered.

What will happen to my unused vacation leave?

You will be paid for your unused vacation leave in accordance with state law.  These monies will be in addition to the VSP payment.

May I tax shelter the vacation pay-out?

Yes.  A lump sum payment for any unused vacation leave that you receive upon separation is eligible to be tax sheltered. If you wish to make a contribution to a tax shelter plan, please contact a benefits representative in the UNT System Human Resources Department toll free at 855-878-7650. You may wish to consult with a tax attorney or other tax professional to learn if these programs will be beneficial for you.

How does the VSP affect my health insurance coverage?

Your insurance (e.g. health, dental, etc.) will continue through August 2020.  For questions regarding your insurance coverage, please contact a benefits representative in the UNT System Human Resources Department toll free at 855-878-7650.

Will I be eligible for COBRA insurance?

Yes.  Faculty members separating under this program are eligible for COBRA benefits. If an individual elects to retire (which is not required under this program) she or he will be eligible for retiree health insurance or other health insurance coverage. For questions regarding COBRA benefits, please contact a benefits representative in the UNT System Human Resources Department toll free at 855-878-7650.

May I be reemployed at the university?

Faculty members who receive the VSP payment are not eligible to be rehired in any full-time position by UNT for five (5) years.  These individuals may be hired as part-time adjunct faculty members as permitted under UNT policy and practices. 

May I dispute a decision not to approve my request to participate in the VSP?

Yes.  Any dispute concerning the participation in the program must be sent to the Provost and Vice President for Academic Affairs. Disputes must be in writing and received within ten (10) days of receipt of the denial notice to participate in the program. The Provost’s decision is final.

Will this program be offered annually?

No.

Who should I talk to if I have questions about the VSP or the Separation Agreement?

This program is administered by the Provost’s Office.  If you are uncertain whether you are eligible to participate in the program or if you have questions about the VSP, you may contact Dr. Bertina Combes at Bertina.Combes@unt.edu. You should speak to your personal attorney if you have questions about how the VSP and separation agreement affect you.