Voluntary Retirement Incentive Plans – AFAP – DCP
The application period for the voluntary retirement incentive plans (VRIP) ended on June 30, 2020. We are excited and pleased to help approved employees with the next part of their journey. The resources and forms below will help ensure a smooth transition into retirement. After you have reviewed these items, be sure to contact Human Resources to schedule a virtual counseling session with a member of the benefits team.
Eligible faculty and administrative professionals who are approved for the VRIP and retire from the University in accordance with the Plan will receive a lump-sum payment equal to one week of the employee’s annual base salary (as of June 30, 2020 for 12 month appointees and the end of the most recent academic year for 9 month appointees) for each year of retirement eligible service not to exceed 30 weeks total.
Base salary does not include temporary salary adjustments or other supplements given as part of a temporary assignment of administrative or
other duties or summer session for 9-month faculty. The incentive payment does not count as “earnings” for any benefit purposes, including Colorado PERA. These payments are not eligible for pretax deferral.
Approved employees were emailed a copy of the separation agreement and general release via email on July 6, 2020. You have 45 days to consider this Agreement and should consult with an attorney if you wish. HR is not able to give you legal advice regarding the agreement. The separation agreement and general release needs to signed and returned to HR no later than August 19, 2020. Please note that this is two days later than stated in the VRIP plan document – CSU has extended the deadline.
Approved employees who contribute to the Defined Contribution Plan (DCP) participants who have not attained age 65 are eligible to receive an enhanced medical subsidy until the lesser of 5 years or when they reach Medicare eligibility at age 65. A refund amount equal to your prorated share of the 2020 Green Plan single coverage will be deposited into your bank account each month and is determined by retirement eligible service.
For example, a retiree meeting the age 55 and 20 years of service requirement would receive the full value of up to $560 each month (certification of premium plan cost required to receive full amount). A retiree meeting the age 60 and 5 years of service would receive the plan minimum of $140 a month. The reimbursement values are fixed for the duration of eligibility (up to the lesser of 5 years or age 65). See the chart below for additional details on the proration of the enhanced incentive. When eligibility expires, the current DCP program rules and subsidy amounts ($50-$200/month) apply.
|Years of Service||Enhanced Monthly Subsidy|
A DCP retiree who is age 65 or greater should refer to the Medical Premium Refund Plan website.