VSIP Participant Benefits

Voluntary Separation Incentive Program (VSIP) Retirement Benefits Information

Provided below is general information about retirement benefits for the Voluntary Separation Incentive Program for Retirement (VSIP) at the University of Kansas for eligible tenured and tenure-track faculty on the Lawrence or Edwards campuses. If you have questions, please contact KU Benefits by email at benefits@ku.edu, by phone at 785-864-7402, or stop by Room 150 Carruth-O’Leary.

For those who participate in the VSIP, the Benefits Office will provide an individualized retirement memo three months prior to the retirement date to ensure that the information provided is the most up-to-date available.  That memo will contain information about the retiree health insurance options, estimated sick and/or vacation leave payout, information for enrolling in Medicare, etc.

Mandatory Retirement Plan Participants

Participants in TIAA and/or Voya retirement plans should contact their retirement company representative to request income illustrations, which will show distribution options and estimated retirement dollars. Currently income you receive from your Kansas Board of Regents tax sheltered 403(b) retirement contracts will be subject to Federal income tax but will not be subject to Kansas state income tax. This State of Kansas income tax exemption is subject to change at any time by legislative action.

Voluntary Retirement Plan Participants

If you participated in the Kansas Board of Regents voluntary 403(b) plan and/or the State of Kansas Deferred Compensation 457 plan, please contact your retirement company representative to request income illustrations, which will show distribution options and estimated retirement dollars. Currently, income you receive from your Kansas Board of Regents tax sheltered 403(b) retirement contracts will be subject to Federal income tax but will not be subject to Kansas state income tax. This State of Kansas income tax exemption is subject to change at any time by legislative action.

Health Insurance

Retirees of any age (and their covered dependents) can continue coverage under the State of Kansas group health insurance plan. Active employee health insurance coverage will end on the date of retirement, and you can elect coverage under the state of Kansas retiree health plan to be effective the first day of the month following retirement. 

Retirees and/or covered dependents who are age 65 or older need to enroll in Medicare Part B to be effective the first of the month following retirement. The Benefits Office will provide the retiree with a letter to take to the Social Security Office to enroll in Part B without penalty.  Medicare-eligible retirees and/or covered dependents will have additional health plan coverage options including plans designed to coordinate specifically with Medicare Parts A and B.

In order to enroll in the retiree health plan you must have continuous coverage from active employment into retirement; you cannot drop out of the insurance plan at retirement and rejoin it at a later date. Retirees have the option to drop dental coverage; however, once dropped, dental coverage cannot be reinstated.

The latest calendar year booklet with health insurance information for retirees and covered dependents can be found on the State Employee Health Plan’s website: http://www.kdheks.gov/hcf/sehp/

Health Care Flexible Spending Account

If you are enrolled in the health care flexible spending account (“FSA”) during the calendar year in which you retire, you will be able to seek reimbursement from that account for expenses incurred through the end of the month in which you retire. Eligible expenses incurred through the last day of the month in which you retire must then be submitted to NueSynergy for reimbursement by April 30 of the following year. If you have made contributions for which there will not be expenses incurred by the time you retire, (that is, you will have a large balance at the time you retire), you can elect COBRA and continue to make FSA contributions so that your funds will still be available later in the plan year.

MetLife Voluntary Insurance Plans

If you are enrolled in MetLife Voluntary Insurance plans you will be able to continue that coverage in retirement.

Group Life Insurance Coverage

While actively employed, the University pays for life insurance coverage equal to 150% of your annual salary, and that coverage ends on your last day in pay status. If you purchased additional optional group life coverage, that coverage ends at the end of the month in which you retire. When you retire, you can elect to continue life insurance coverage by returning a completed election form with payment to the insurance company within 60 days from your retirement date.

Portable group term life insurance coverage is available if you are under age 80.  Additional information can be found here: https://www.standard.com/eforms/9178_753781.pdf

Conversion coverage is available regardless of your age. There is no age limit, no reduction of coverage based on age, and no minimum amount required. Conversion insurance coverage is individual whole life, and you can purchase the same amount of coverage you presently carry. Additional information can be found here https://www.standard.com/eforms/9563_753781.pdf

To continue optional group life insurance coverage for your spouse and/or dependent children, additional information can be found here https://www.standard.com/eforms/9178_753781.pdf

Leave Payouts

To view your sick leave or vacation leave balances please log-in to the HR/Pay site.

Faculty Sick Leave

Sick leave will be paid at retirement, based upon years of service and accumulation as follows:

Years of Service

Hours Accumulated

Hours Paid

8

800

240

15

1,000

360

25

1,200

480

Examples:

  • If you have 15 years of service and 1,300 hourse accumulated, you will be paid for 360 hours
  • If you have 25 years of service and 900 hours accumulated, you will be paid for 240 hours.

Vacation Leave - Faculty in 12 month positions.

A maximum of 240 hours of annual leave will be paid at retirement.

Additional Information about KU Retirement Benefits

For information about benefits KU provides to retirees (e.g., KU email address, parking permit, sports and theatre/concert tickets), KPERS retiree rehire provisions, as well as the KU retiree rehire policy, please see http://humanresources.ku.edu/benefits-retirement.

 

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