Voluntary Retirement Incentive Plan 2024
VRIP Overview
This page is intended to provide both professional staff who elected to participate in the 2024 VRIP and retired on January 31, 2025, and Ffculty members who retired on June 30, 2025, with resources about the program.
The VRIP package consisted of a lump-sum payout of a percentage of your salary that varies depending on your points group, a Health Reimbursement Arrangement (HRA) that was funded in the amount of $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, was used to determine your salary payout. Benefits escalated as points increased. Your years of service and age as of December 31, 2024, were used to determine your eligibility and points.
Health Reimbursement Arrangement (HRA)
An HRA is a tax-advantaged retiree health care savings account for which money is set aside for you and is available to help pay for health care costs in retirement. For the 2024 VRIP, the HRA was funded with $25,000 in contributions from the University. You were not taxed on the University’s contribution. The funds were deposited in a target date mutual fund and available to access on or around February 21, 2025, for professional staff and July 18, 2025, for faculty. The funds can be invested in a variety of investment choices.
Money in the HRA 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), and other out-of-pocket health expenses.
Eligibility
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.
Resources
- HRA Highlights [PDF]
- HRA Account Guide [PDF]
- Qualified Medical Expenses List [PDF]
- How to Submit an HRA Claim Form [PDF]
Returning to Work
HRA Access
If you return to work for Drexel University and receive income, your access to the HRA will be frozen until you no longer have income. As a working retiree, you are considered an active employee; you cannot use your HRA to pay for or be reimbursed for qualified healthcare expenses until you permanently separate from Drexel. While you are working, you may move your funds to other available investments in the HRA lineup, but your ability to use the funds for qualified healthcare expenses will be suspended. Upon termination of all employment with Drexel, you must notify HR Benefits to have your HRA access reinstated.
403(b) Funds Access
For purposes of taking distributions from the 403(b) plan, retirees receiving income from Drexel are considered active employees, meaning you are not eligible (according to the terms of the 403(b) plan) to take Required Minimum Distributions (RMDs) even if you are of RMD eligibility age. However, if you are over age 59½, you can take in-service distributions from your account until you have terminated from all service with Drexel.
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.
General Program and Process Questions
Please email all questions about the program to hr@drexel.edu.