Following the submission of the 2021 Retirement Incentive Election Form, you and the university will begin preparing for your retirement, which will be effective June 30, 2021.
The preparation process includes:
- Finalizing the Participant Agreement and Release and any other necessary paperwork;
- Calculating incentive payment;
- Applying for retirement benefits;
- Enrolling in healthcare plan; and
- Working with unit on transition plan.
To participate in the 2021 Retirement Incentive, employees will sign a formal Participation Agreement and Release that provides the gross lump sum payment amount, covers the terms of the program, and releases the university from legal claims.
Participant Agreement and Release
Human Resources will coordinate directly with participating employees to review and complete the Participation Agreement and Release. Sample agreements are provided below:
Important Update 1/8/2021:
Based on feedback received from eligible employees and other stakeholders, HR requested UO legal counsel revisit the option of offering split payments to program participants. After further review, legal counsel was able to identify a tax compliant way to divide the payment over tax years 2021 and 2022.
Participating employees receive a lump sum payment that includes:
- Amount equivalent to one year of base compensation, and
- A healthcare bridge payment (for those between ages 62 and 65) that can be used to purchase health insurance.
This payment will be determined using the 2021 PEBB retiree healthcare plan, employee only coverage, monthly rate of $878.61 multiplied by the number of months remaining to become Medicare eligible at age 65. Those age 65 and over at the time of retirement are not eligible for the healthcare bridge payment.
When signing their formal Participant Agreement and Release, participating employees will be asked to indicate whether they would like to receive their incentive in one lump sum payment or split into two payments by choosing one of the following three options:
Option 1: The entire payment will be issued in one lump sum in July 2021.
Option 2: 50% of the total payment will be issued in July 2021 and the remaining 50% will be issued in February 2022.
Option 3: 25% of the total payment will be issued in July 2021 and the remaining 75% will be issued in February 2022. Ppayment terms include:
- Payments will not be made by any other percentages than what is listed in the options above and dates of the payments are not negotiable.
- Once the employee’s selection has been made and the signed Participant Agreement and Release is submitted to HR, changes to the payment structure will not be allowed to be made.
- Interest will not be earned on the unpaid amount, if a split payment option is elected.
- Income taxes will be withheld from payments at the federal supplemental tax rate in effect at the time of payment (i.e. 2021 tax rates apply to the July 2021 payment, 2022 tax rates will apply to the February 2022 payment).
- It is the participant’s responsibility to notify Payroll if their address or bank account information changes before all payments are distributed. Changes can be submit through DuckWeb.
- Payments will be capped at $250,000.
- Income taxes will be withheld from the payment(s) at the federal supplemental tax rate in effect at the time of payment (currently 22% for 2021) and the Oregon supplemental rate in effect at the time of payment (currently 8% for 2021).
- Employment taxes (Social Security and Medicare taxes) apply and will be withheld from the payment(s).
- No additional contributions will be made to retirement accounts based on the lump sum payment.
- University health insurance coverage ends on July 31, 2021*.
- Employees who elect to retire under this program will be entitled to university services available to retired employees and for represented faculty per the United Academics collective bargaining agreement, Article 30.
- Faculty may also be entitled to emeritus status pursuant to UO policy.
*Law School faculty whose contract ends on May 15, 2021 will have a double insurance premium deduction taken from their May 2021 paycheck in order to continue their university health insurance through July 31, 2021.
- Review your estimate.
- Review PERS Pre-Retirement Guide for your plan: Tier One/Two or OPSRP.
- Complete retirement application and forms for your plan: Tier One/Two or OPSRP.
- Submit PERS Retirement application and forms to PERS after April 1, 2021. PERS must receive your paperwork no later than June 30, 2021 for a July 1, 2021 retirement date.
University health insurance coverage ends on July 31, 2021 based on the retirement date of June 30, 2021. You will need to enroll in retiree healthcare before July 31, 2021, for August 1, 2021 effective date.
Program participants between the ages of 62-65 will receive a payment to assist with bridging the cost of health insurance to Medicare coverage at age 65. Refer to the retirement healthcare options webpage for more information about your options.
Contact UO Benefits Office at email@example.com with questions or for assistance with completing your retirement paperwork.
Unit leadership and supervisors will be notified by Human Resources when an employee elects to participate in the 2021 Retirement Incentive Program. You are encouraged to reach out to your supervisor and begin collaborating on a transition plan for your retirement effective June 30, 2021.
Please work with your supervisor to plan your use of vacation to avoid losing accrued hours. A maximum of 180 accrued vacation hours will be paid upon separation.
Additional forms that may be required:
- IAP Direct Transfer Rollover Acceptance – Required if you want to rollover your IAP to your 403b or OSGP
- Direct Deposit
Instructional video: How to complete your application
Additional forms that may be required: