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Voluntary Retirement Incentive Plan 2024

The 2024 Voluntary Retirement Incentive Plan (VRIP) is an optional, one-time opportunity for eligible faculty and professional staff to retire in fiscal year 2025 with financial and other incentives. The VRIP is being offered to faculty and staff whose age plus years of service with the University total at least 80. Points are calculated using the sum of the years of service plus age.

  • Professional staff who are participating in the 2024 VRIP will retire on January 31, 2025.
  • Faculty who participate in the 2024 VRIP will retire on June 30, 2025.

Participation in the plan is available on a first-come, first-served basis with a $25 million financial maximum threshold for the University. The final day to elect participation in the 2024 VRIP is November 15, 2024, or once the University’s financial threshold has been met, whichever occurs first. 

Enrollment windows will open based on the participant’s number of points, with the first enrollment window opening for the 100+ points group on Monday, Sept. 23, at 8 a.m. Please consult the VRIP Participation Timeline and Steps to Participate below for details on how to enroll.

There are three groups: 100+ points (Group One), 90+ points (Group Two) and 80+points (Group Three). The enrollment window opens two weeks early for the 100+ group (One) and then one week early for the 90+ point group (Two). Finally, the 80+ point group (Three) window will open if there are still open slots. The window remains open for all groups until the earlier of (1) when the financial threshold has been met or (2) November 15, 2024.

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.

  1. Group One/100+ Points – 100% of base salary (12 months), plus $25,000 HRA and two Tuition Scholarship Benefits
  2. Group Two/90+ Points – 75% of base salary (9 months), plus $25,000 HRA and two Tuition Scholarship Benefits
  3. Group Three/80+ Points – 50% of base salary (6 months), plus $25,000 HRA and one Tuition Scholarship Benefit

VRIP Retiree Benefits Guide [PDF]

VRIP Retiree Benefits Guide (Flipbook)

Frequently Asked Questions [PDF]

2024 VRIP Checklist and Timetable [PDF]

Schedule an individual consultation with the HR Benefits team

VRIP Participation Timeline

June 17, 2024: Personal Incentive Summary packages are sent via email to those eligible for the VRIP.

June 2024 through September 2024: Information Sessions are held, and One on One Benefit Consultations are available.

August 15, 2024: All groups eligible to participate in the VRIP will receive the Voluntary Retirement Incentive Plan Document. This will contain an Election and General Release of Claims form, Revocation form and Benefit Enrollment form released to those eligible for the VRIP.

September 23, 2024: Election window opens at 8 a.m. Eastern for those who have 100+ points, to elect participation in VRIP for a January 31, 2025 (staff) or June 30, 2025 (faculty) retirement date.

September 30, 2024: Election window opens at 8 a.m. Eastern for those who have 90+ points, to elect participation in VRIP for a January 31, 2025 (staff) or June 30, 2025 (faculty) retirement date.

October 7, 2024: Election window opens at 8 a.m. Eastern for those who have 80+ points, to elect participation in VRIP for a January 31, 2025 (staff) or June 30, 2025 (faculty) retirement date.

November 15, 2024 (or once cap has been met): Final day to elect participation in the VRIP.

Faculty Key Dates [PDF]

Professional Staff Key Dates [PDF]

All required documents must be emailed to vrip@drexel.edu from your Drexel email account and completed properly for the application to be considered received!

Steps to Participate in the VRIP

  1. During the week of August 15, 2024, all eligible employees will receive an email from vrip@drexel.edu containing the Election and General Release of Claims form, VRIP Plan and Summary Plan Description, Final Release of Claims Form, Revocation of Election form, Benefits Enrollment form and FAQ.
  2. Enrollment windows open by group starting on September 23, 2024 (see above).
    • Sign and date the Election Form and General Release of Claims form and submit it as soon as possible once your election window opens, or by November 15, 2024
    • You may print the form and physically sign and date it and then scan it to return via email, or sign the PDF with the Adobe signature.
  3. Return the signed and dated form to vrip@drexel.edu via your Drexel email account (mandatory) no earlier than 8 a.m. the day your election window opens.
    • Please note: If you submit before 8 a.m. on the day your window opens, your submission will be denied, and you will need to re-submit when your window opens. 
  4. HR will verify that your form is complete and then attach a timestamp to your submission indicating when it was received in the vrip@drexel.edu inbox. You will receive a response from HR within two (2) business days of submission stating that your form has been reviewed and either accepted or denied.
  5. You can revoke your election within seven business days after the date you return the signed Election and General Release of Claims form by submitting a signed Revocation of Election form to vrip@drexel.edu. The Revocation of Election form is available in the Voluntary Retirement Incentive Plan document noted above and will be emailed from vrip@drexel.edu. This form should only be completed if you decide to revoke your election and must be received by vrip@drexel.edu within seven days of the submission of an accepted Election and General Release of Claims form.
  6. On your final day of employment or within 10 days after this date, you must sign and return your Final General Release of Claims form to vrip@drexel.edu, to ensure that your VRIP salary payout can be processed:
    • Professional Staff: January 31, 2025
    • Faculty: June 30, 2025
  7. Refer to the checklist in the VRIP Retiree Benefits Guide (flipbook or PDF) for helpful benefit resources, as well as key dates to apply for Medicare with Social Security and for deadlines to enroll in Drexel’s retiree benefits.

It is strongly encouraged that you refer to and become familiar with the following information:

VRIP Retiree Benefits Guide [PDF]

VRIP Retiree Benefits Guide (Flipbook)

Frequently Asked Questions [PDF]

2024 VRIP Checklist and Timetable [PDF]

Eligibility

Participation in the plan is available on a first-come, first-served basis with a financial maximum threshold.

Notification of Eligibility: If you are eligible for the 2024 VRIP, a Personal Incentive Summary package has been sent to your Drexel email address from vrip@drexel.edu.

You are eligible to participate if you are a full-time, benefits-eligible professional staff member, non-tenured faculty member, or tenured faculty member (who has not already committed to take the tenure faculty buyout program effective August 31, 2024), and have met the following age and service requirements as of December 31, 2024:

  • Minimum age 55; and
  • Completed 10 years of full-time consecutive service with Drexel University, the Academy of Natural Sciences and/or Drexel University College of Medicine; and
  • Have 80+ points total based on age and years of service.

You are not eligible to participate if you are:

  • A part-time, casual, temporary or per-diem employee or an adjunct faculty member; or
  • A member of a collective bargaining unit.

Check your continuous service date by:

  • Navigating to the Employee tab in DrexelOne, go to “All BannerWeb Employee Services”, then click “Employee Dashboard.”
  • Click the ^ next to Employee Summary. The section will expand to show data relevant to your employment. The service date is labeled as “Adjusted Service.”

Benefits and Incentives

The VRIP package consists of a lump sum payout 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 from 80, 90 to 100+ points.

  1. Group One/100+ Points – 100% of base salary (12 months), plus $25,000 HRA and two Tuition Scholarship Benefits
  2. Group Two/90+ Points – 75% of base salary (9 months), plus $25,000 HRA and two Tuition Scholarship Benefits
  3. Group Three/80+ Points – 50% of base salary (6 months), plus $25,000 HRA and one Tuition Scholarship Benefit

One-time lump-sum payment

The retirement incentive payment is based on your points Group:

  1. Group One/100+ points – 100% or 12 months of base salary
  2. Group Two/90+points – 75% or 9 months of base salary
  3. Group Three/80+points – 50% or 6 months of base salary

The retirement incentive will be paid as a single, lump-sum distribution on the following timelines:

  • Professional staff: February 21, 2025
  • Faculty: July 18, 2025, or January 16, 2026, if you elect to defer the payment until the new calendar year

The 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% along with Social Security, state, and local taxes at normal rates.

For additional tax information please consult legal counsel or tax advisor.

Health Reimbursement Arrangement (HRA)

An HRA is a tax-advantaged retiree healthcare savings account where money is set aside for you and is available to help pay for healthcare 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.

Additional details about the HRA are provided in the VRIP Frequently Asked Questions document, question No. 15.

Tuition Scholarship Benefit

The 2024 VRIP includes a Tuition Scholarship Benefit. This can be one or two tuition scholarships depending on your points group. This can be designated to an individual of your choosing provided that they meet the eligibility criteria. Tuition scholarships are based on your points group:

  1. Group One/100+ two tuition scholarship benefits
  2. Group Two/90+ two tuition scholarship benefits
  3. Group Three/80+ one tuition scholarship benefit

Additional details about the tuition scholarship are provided in the VRIP Frequently Asked Questions document, question No. 45.

Information Sessions

Drexel Human Resources will be providing virtual information sessions about the plan details and processes. Details on future sessions will be posted here and sent to eligible participants as they become available.

Information sessions about the VRIP and Medicare were held in June and July; the presentation decks from these sessions are posted below.

General Program and Process Questions

Please email all questions about the program vrip@drexel.edu.

One-on-One Benefit Consultations

Schedule an individual consultation with the HR Benefits team

Members of the Drexel Human Resources Benefits team are available to meet with you individually via Microsoft Teams to answer any questions about benefits after retiring. To schedule an individual consultation:

  • Go to the Bookings website
  • Select a date and time
  • Enter your contact information
  • Select "Book"

Once registered, you will receive an Outlook meeting invitation and confirmation from the Benefits Consultant containing information you may review before the meeting.

The meeting will be conducted through Microsoft Teams, part of the Office 365 suite, so please be sure you have Microsoft Teams available on the device you plan to use for your consultation. The Benefits team member providing your consultation will call you using Teams. Simply click on the red telephone icon and accept the call to begin your consultation. Drexel IT describes how to use Microsoft Teams. Should you have trouble with Teams, please let your Benefits Consultant know before your scheduled meeting time.

Information About Medicare and Other Healthcare Options

For 2024 retiree medical rates and plans offered, refer to the Retiree Benefits webpage or consult the VRIP Retiree Benefits Guide (flipbook or PDF). Updated healthcare rates for 2025 will be available in fall 2024.

Questions About Finance and Retirement Planning?

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).