2025 VSIP FAQs

The financial impact of several external factors has led to a revenue shortfall for the current fiscal year, and it is anticipated the impact will continue into the 2027 fiscal year. University leadership is exploring a number of cost-savings measures that can help the university operate long into the future. This program is an opportunity that allows the Lawrence and Edwards campuses to have greater flexibility with financial and strategic decisions.  The Voluntary Separation Incentive Program allows administrators to offer eligible employees incentives for an accelerated departure. In all cases, decisions will prioritize the university's financial and strategic needs, which are in the best interest of the university community. 

The University is exploring a variety of strategies to increase revenues and reduce costs. These efforts include looking for opportunities to change workloads by eliminating activities that do not support KU’s goals. As always, managing the teaching and research responsibilities of retiring faculty will be done at the unit level. KU’s stature as a leading research institution is tied to being able to provide faculty with opportunities to push the boundaries of knowledge. KU remains committed to ensuring excellence in scholarship through its faculty.

Employees may be subject to other cost-savings measures that are or may come into consideration. The payout for applicants who are accepted into the program will not be affected should the university need to take additional measures.

KU’s mission and strategic goals are a key priority, and all VSIP applications will be weighed against the best interests of the university community. A faculty member’s VSIP application could be denied if that departure would significantly weaken KU’s work in an academic or research area, or program accreditation.

We do not anticipate offering a VSIP program again. Much like previous voluntary separation programs, this program is designed to help address a time-specific challenge.

The VSIP is available only to eligible KU-Lawrence and Edwards Campus faculty who are active participants in the KBOR Mandatory retirement plan who:

1. Are 62 years of age or older at the Date of Separation (retirement);
2. Hold a tenured position at the rank of Associate Professor, Professor, Distinguished Professor, Associate Librarian or Librarian;
3. Hold a state-funded position;
4. Have completed at least ten (10) years of service in a benefits-eligible position at KU or a State of Kansas agency at the date of separation; and
5. Are not otherwise ineligible, as set forth below. 

The following employee groups are ineligible:

1. Individuals who already have an active phased-retirement agreement or are scheduled to begin phased-retirement at a future date,
2. Employees who have already identified and communicated a specific date for separation from the University and their unit has acknowledged the decision,
3. Employees whose positions are funded entirely (100%) through grants,
4. Current KU retirees who have been rehired at KU,
5. Individuals residing in a state where the VSIP is prohibited by law,
6. Individuals approved to receive or receiving long-term disability benefits, and
7. Individuals on sabbatical leave during Spring 2026, unless revoked.

Eligibility of faculty to apply for the VSIP was based upon a number of factors, including the faculty member’s length of service to the university, the individual’s age, and the assurance that the faculty was eligible to retire under the  Kansas Board of Regents’ retirement plan and had reached the minimum eligibility for at least partial Social Security benefits.  

Additionally, while it is the intention of KU to allow as many eligible faculty as possible to participate in the VSIP, KU reserves the right to limit the total number of participants in order to preserve the viability of programs and services and the integrity of financial resources. KU must be sure the unit’s operational and accreditation needs are served so that units can achieve their strategic and organizational mission. Ultimately, the university needs to make certain that the needs and best interests of the entire university community are served.

Eligible faculty who are approved for VSIP and on sabbatical leave in Fall 2025 are subject to a pro rata reduction of the VSIP benefit equivalent to the reimbursement of one semester of pay in accordance with Section 10 of the University Sabbatical Leave Policies and Procedures. Individuals on sabbatical leave during Spring 2026 are ineligible, unless the sabbatical is revoked.

If your retirement application has not yet been finalized, then you are eligible to participate in the VSIP. If your retirement application has been finalized, you are not eligible to participate.

Oct. 30: VSIP announced

Dec. 1: Deadline to submit VSIP application, Notice of Interest Form. 

Dec. 9: Employees will be notified if their application has been accepted. If approved, employees will receive a Notice of Retirement form.

Dec. 23: Deadline to submit Notice of Retirement

May. 22: Retirement Date. Return signed and notarized Separation Agreement.

May 29: Final day to submit signed and notarized Separation Agreement.

For a more detailed timeline, visit the VSIP Guidelines webpage. 

Selected individuals will be expected to complete instructional activities through the end of the Spring 2026 term.

KU is not able to notify applicants earlier than Dec. 9 regardless of when they submit their Notice of Interest form before the Dec. 1, 2025, deadline. The program calendar is tied to both academic and fiscal planning as well as employment law and the rules regarding the length of time employees must have to apply for the VSIP. The university intends to approve as many applications as possible, although all decisions will be made in the best interest of the university community.

It depends. You can decide not to participate in the VSIP at any point in time, HOWEVER once you sign and return the Notice of Retirement document (deadline Dec. 23), your decision to retire is  final. Participants cannot later revoke their retirement as the University will make decisions related to finances, academic assignments and service based upon this notice.

The Separation Agreement outlines the financial and legal terms of the arrangement, including a release of claims against the university, and is due on or within seven days after the retirement date of May 22, 2026. You can always choose not to sign the Separation Agreement. If you decide not to sign the Separation Agreement, you will not receive the incentive pay, but will be treated as a retiree.

If you are accepted for the VSIP, the Notice of Retirement document must be completed and submitted no later than 5 p.m. CST on Dec. 23, 2025. Your signature is binding and indicates the date you agree to leave university employment and may not be rescinded. Selected applicants who return the Notice of Retirement will later receive an electronic Separation Agreement document. This document outlines the financial transaction that will take place at the time of separation. Failure to sign this document at the time of retirement will mean you revoke the payout, not that you refuse to retire.

You will be required to retire on the documented retirement date, regardless of whether you choose to sign the Separation Agreement and Release document you receive later. Please consider your options carefully as deadlines are rigid and this particular step is binding.

You will be required to retire on May 22, 2026, because the university and your department will be making a financial commitment to you, perhaps to the exclusion of another faculty or staff member. Additionally, the University will need to begin planning to meet the academic and departmental needs prior to your actual retirement.

Potential participants are strongly urged to consult with an attorney. They are also encouraged to discuss this option with their family and personal tax advisor. 

If you are accepted for the VSIP, the Notice of Retirement document you must complete and submit by Dec. 23, 2025, is binding and indicates the date you agree to leave university employment. Selected applicants who return the Notice of Retirement will later receive an electronic Separation Agreement document. This document outlines the financial transaction that will take place at the time of separation. Failure to sign this document at the time of retirement will mean you revoke the payout, not that you refuse to retire. 

Participation decisions will be made by Chief Academic Officer/Provost and Executive Vice Chancellor Barbara A. Bichelmeyer in consultation with Deans, Vice Provosts and other KU leaders. Those decisions will be final. In agreement with UAKU negotiators, University administrators will meet with applicants who are denied to discuss the decision.

If a complaint is filed with the Provost for termination of the employee prior to the VSIP Date of Separation, the VSIP payment is suspended until the complaint is fully resolved through the FRB process. If termination is approved, no VSIP payment will be made.

Eligible faculty who are considering applying should request information about their specific base salary by emailing vsip@ku.edu.

In general the incentive payment is a lump-sum cash payment equivalent to the participant’s FY-2026 budgeted current nine-month base salary, or 12-month base salary for individuals on a 12-month appointment. 

Any VSIP payment will be subject to required payroll deductions, including applicable federal and state taxes and any other legally required deductions. Neither the employee nor KU will make mandatory retirement contributions on the incentive payment amount and the incentive payment amount cannot be used in the calculation for voluntary retirement plan contributions.

For faculty members, base salary is the annual budgeted salary not including summer sessions, overloads, or other one-time payments; endowed or distinguished professor supplements; research or external funding; endowment income; or any other administrative payments.

You can elect to direct some of your sick and/or annual leave payout into a voluntary retirement plan. You will not be able to include the VSIP lump sum payment amount in the calculation of your maximum deferral for voluntary retirement plan contributions. Once you elect to retire, either under the VSIP or regular retirement, the Benefits Office will ask you whether you would like to receive information about the maximum amount you can defer into the Kansas Board of Regents voluntary 403(b) retirement plan. The IRS provides maximum deferral information in late October/early November for the following calendar year. If you have further questions, please consult the Human Resources website or contact the Benefits Office at benefits@ku.edu.

If your questions are seeking more detail about the VSIP program, the dates, or deadlines, please email vsip@ku.edu.

If you have benefits-related questions, please contact the Benefits Office of Human Resources at benefits@ku.edu.

No. VSIP participants are also encouraged to read the University’s Retiree Rehire & Retiree Contractual Services Policy. 

VSIP participants may be eligible for rehire at KU or KU Med Center although restrictions apply and rehire may impact retirement benefits. Please see the University’s Retiree Rehire policy for additional information.

Yes. Other KBOR institutions or Kansas state agencies are not covered by this program’s restriction. However, there are other important considerations that you may wish to consider, including KBOR’s guidance and the University’s Retiree Rehire policy.

Yes. Individuals who successfully complete the retirement process – whether or not they are part of the Voluntary Separation Incentive Program – are eligible for a variety of KU-related benefits. A complete list can be found on the Human Resources website.

Academic year faculty participating in the VSIP will not have double deductions for health insurance benefits occur during the Spring 2026 semester. State Employee Health Plan Benefits for employees completing the Notice of Retirement document will end on May 31, 2026. KU Benefits will reach out to all approved VSIP participants with individualized benefits information in mid-to-late January 2026. 

Yes. Retirees are eligible for accrued sick leave and vacation leave payments due to an employee at the time of retirement per University policies, plans, and procedures. Retirees will receive a payment for those compensable payments regardless of whether they execute the Separation Agreement.

VSIP participants are eligible for emeritus status as long as they meet the qualifications outlined in KU’s Emeritus Status policy, including “a minimum of 10 years of full-time continuous service at the University of Kansas.”