Voluntary Retirement Incentive Plan 2024
The election window for the 2024 Voluntary Retirement Incentive Plan (VRIP) closed on November 15, 2024. This page is designed to assist those who chose to participate through the transition into retirement.
Professional staff who elected to participate in the VRIP will retire on January 31, 2025, and faculty members who elected to participate will retire on June 30, 2025.
The VRIP package consists of a lump-sum payout of a percentage of your salary that varies depending on your points group, a Health Reimbursement Arrangement (HRA) that will have a $25,000 tax-free employer contribution, and one or two Tuition Benefit Scholarships (depending on your points group).
Your base salary as of June 30, 2024, is used to determine your salary payout. Benefits escalate as points increase. Your years of service and age as of December 31, 2024, are used to determine your eligibility and points.
Next Steps for VRIP Participants
- Health Reimbursement Arrangement (HRA) webinars will be provided by TIAA. See the link below to register for the January 15, 2025, session.
- Professional staff: Jan. 15, 2025, 12 p.m. Register
- Faculty: May 20, 2025, 12 p.m. – Register
- Retiree Benefit Enrollment forms returned to HR for processing, based on your retirement date. To avoid any delays in the benefit transition, if enrolling in Drexel sponsored health plans, the suggested return dates for the enrollment forms are:
- Professional staff: As soon as possible in Jan. 2025
- Faculty: June 7, 2025
- Reaffirmation of Agreement and Supplemental Release of Claims Form must be signed and returned to vrip@drexel.edu on your final day of employment, or within 10 days after that date. This is to ensure that your VRIP one-time lump-sum payment can be processed.
- One-time lump-sum payment will be delivered in the same manner as your Drexel paycheck, either direct deposit or USPS to your home address on file. Federal withholdings will be deducted at a supplemental rate of 22 percent along with Social Security, state and local taxes at normal rates. If you receive a check to your home, be sure that HR has your current mailing address.
- An entitlement letter will be mailed to your address on file within two business days of the deposit of the funds. This letter advises you of your eligibility to access benefits from your HRA account and provides you with the next steps. Please see the HRA section below for more information.
- HRA funds will be deposited and available as listed below:
- Professional staff: Feb. 21, 2025
- Faculty: July 18, 2025
Health Reimbursement Arrangement (HRA)
An HRA is a tax-advantaged retiree health care savings account where money is set aside for you and is available to help pay for health care costs in retirement. For the 2024 VRIP, it is funded with $25,000 in contributions from the University. You are not taxed on the University’s contribution. The funds are immediately credited on your retirement date and will be available in your HRA on or around February 21, 2025, for professional staff and July 18, 2025, for faculty and can be invested using a variety of investment choices.
The funds will be in an individual account with TIAA that is set up for you under a trust that will hold the funds. Initially the funds will be invested in a target date mutual fund. However, there will be a variety of investment choices and you will have the ability to change where the funds are invested.
When you retire, money in the account can be accessed tax-free and used for a variety of qualified medical expenses for you and your spouse for expenses such as:
- Retiree health insurance premiums
- COBRA premiums
- Medicare premiums
- Long-term care insurance premiums
- Copayments and deductibles
- Prescription drugs
- Over the counter drugs and medicine (not for general health or cosmetic purposes)
- Other out-of-pocket health expenses
The HRA can be used to pay qualified medical expenses incurred by you, your spouse or domestic partner and any child who has not attained age 26. To be eligible, a domestic partner or their child must be your dependent under Code section 152.
View the HRA Webinar for Professional Staff
HRA Frequently Asked Questions [PDF]
Money is set aside now to help you pay your health care costs in retirement. Funding from retirees is not permissible in the plan. When you retire, money in your account can be used for a variety of qualified medical expenses such as:
- Health insurance premiums
- Copayments and deductibles
- Prescription drugs
- Other expenses as defined by the IRS publication 502.
TIAA and Optum Financial
The TIAA Health Reimbursement Arrangement account utilizes Optum Financial as the claims administrator that processes HRA reimbursement claims on behalf of TIAA. The Optum Financial website is integrated with the TIAA website, so you only need to log in once to view your accumulation data and claims data.
Eligibility
A retiree (and their eligible dependents) of the University eligible for and elected to participate in the Drexel University 2024 Voluntary Retirement Incentive Plan is eligible for the HRA.
The definition of eligible dependent under the Drexel plan includes your spouse, domestic partner and any child who is under age 26. To be eligible, a domestic partner must be your dependent under Code section 152. For this purpose, a “child” includes your natural child, adopted child or a child placed with you for adoption.
Contribution and Account Management
Drexel University will make a one-time contribution to your HRA account in the amount of $25,000 on February 21, 2025, for staff and July 18, 2025, for faculty.
Your HRA account will be viewable and managed on the TIAA.org portal. After the contribution is posted to your account, you will receive a letter confirming that you, as the account holder, along with your eligible dependents, will be entitled to receive benefits from the account.
Investments
Initial contributions will be invested at TIAA in a Nuveen Lifecycle Fund that has a date closest to the year you will turn age 65. Keep in mind that, as with all mutual funds, the principal value is not guaranteed at that target retirement date or any other time. Once your account is established, you will have the opportunity to change your investment option(s) if you choose on the TIAA.org portal.
Shortly after your contribution date, TIAA will automatically make your account “Claims Active,” and you will receive an envelope marked “Important Benefits Enclosed” within 7-10 business days. This is your “Welcome Packet”; inside you will find your health care payment card or debit card, which can be used for qualified medical expenses (QME). The envelope will also include instructions on how to file claims for reimbursement of QMEs.
Professional Staff:
- January 15, 2025, 12 p.m. EST – Webinar given by TIAA Register
- February 21, 2025 – Funds will be deposited and available to view in your account.
- Entitlement letter will be mailed within two business days of the deposit of the funds. This letter advises you of your eligibility to access benefits from your Health Reimbursement Arrangement account.
- Claims Activation – Shortly after your contribution date, TIAA will automatically make your account “Claims Active.”
- Welcome Packet – You will receive a “Welcome Packet” that contains your debit card from Optum Financial within 7 to 10 business days after your account becomes “Claims Active.”
Faculty:
- May 20, 2025, 12 p.m. EST – Webinar given by TIAA Register
- July 18, 2025 – Funds will be deposited and available to view in your account.
- Entitlement letter will be mailed within two business days of the deposit of the funds. This letter advises you of your eligibility to access benefits from your Health Reimbursement Arrangement account.
- Claims Activation – Shortly after your contribution date, TIAA will automatically make your account “Claims Active.”
- Welcome Packet – You will receive a “Welcome Packet” that contains your debit card from Optum Financial within 7 to 10 business days after your account becomes “Claims Active.”
Tuition Scholarship Benefit
The 2024 VRIP includes a Tuition Scholarship Benefit.
To select your tuition scholarship designee, you can complete the Tuition Scholarship Benefit Form [PDF] and email it to Gabby Maddaloni, Benefits and Budget Analyst, at gm664@drexel.edu.
Additional details about the tuition scholarship are provided in the VRIP Frequently Asked Questions document, question No. 45.
Resources
For 2024 retiree medical rates and plans offered, refer to the Retiree Benefits webpage or consult the VRIP Retiree Benefits Guide (flipbook or PDF).
Schedule a free, virtual financial consultation with TIAA to discuss your retirement savings plans by visiting TIAA.org/schedulenow or calling 1.800.732.8353, Monday-Friday, 8 a.m. to 8 p.m. (ET). For general customer service, call TIAA at 1.800.842.2252, Monday-Friday, 8 a.m. to 10 p.m. and Saturday from 9 a.m. to 6 p.m. (ET).
General Program and Process Questions
Please email all questions about the program to vrip@drexel.edu.