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FAQs for Voluntary Incentivized Retirement Program (VIRP)

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VIRP Participation

Employees who meet the qualification requirements will receive an email on August 24, 2020 that they are invited to participate. The email will include instructions on how to access your personalized VIRP documents.

Please contact the Human Resources Department directly to discuss whether you are eligible.

The email you receive will include a link to a VIRP Election Form. To participate, you must complete and electronically submit the VIRP Election Form no later than the close of the election window. By submitting the VIRP Election Form, you indicate your intent to participate in the Program.

You are being asked to indicate your intent during the election window. The VIRP Election Form is not a binding decision on your part to retire, and it does not guarantee that TCU will accept your retirement request.

 

The VIRP Payment

TCU anticipates that all VIRP payments will be made during the month following the month of your retirement date. These payments will be made through the ordinary payroll process.

Yes. The same deductions that apply to other income you receive from TCU will be taken. That includes federal, state, and local income taxes and FICA (Social Security and Medicare) tax, and, if applicable, state unemployment tax.

TCU cannot offer individual tax advice regarding the VIRP. You should consult   with an accountant or tax advisor if you have any questions on how the VIRP payment will affect you. TCU considers VIRP payments to be ordinary income to employees and the payment will be reflected in your annual Form W-2.

No, VIRP payments do not count as earnings for TCU benefits purposes.

Yes. Your lump sum payment is in addition to the payment upon separation of any accrued vacation pay under TCU’s policies.

 

VIRP Agreement and General Release

You will sign the VIRP Agreement and General Release no earlier than your retirement date and no later than ten (10) days after that date. Failure to return a fully executed VIRP Agreement and General Release during that time period will result in no payment of VIRP benefits.

Your personalized VIRP Agreement and General Release will be accessible when you receive the invitation email and will be located in my.tcu.edu. You must print and sign a copy of the Agreement and General Release. If you have any difficulty locating or accessing the Agreement and General Release online, or if you need assistance in obtaining a hard copy, please contact the Human Resources Department.

You will be required as part of your VIRP participation to sign a general release of any claims you have or may have against TCU and its agents. This is a mutual commitment, as TCU will also release you from any claims it has or may have against you. These mutual general release provisions are intended to assure an amicable conclusion to the employment relationship.

All participants will have at least 45 calendar days to review and consider the VIRP Agreement and General Release. This is known as the Consideration Period, which starts when you access the VIRP Agreement and General Release online at my.tcu.edu (or when you otherwise receive a copy of it if that is earlier). Once signed, the VIRP Agreement and General Release is a binding contract. However, you may revoke a signed and submitted VIRP Agreement and General Release within seven (7) calendar days of the date of signature, which is known as the Revocation Period. The VIRP Agreement and General Release provides specific information about those revocation rights.

Any adult over the age of 18 who knows you may witness your signature.

It is recommended (but not required) that you contact an attorney to discuss the VIRP and to review the VIRP Agreement and General Release before signing. Use of an attorney is at your expense.

 

Benefits

No. As noted, the VIRP provides a one-time payment to those who choose to participate in the program. The decision whether or not to participate will not affect existing employee benefits. As always, the terms and conditions of the relevant plans govern.

You may request an earlier retirement date. If TCU agrees to your request, you will receive the VIRP payment so long as you have satisfied the other VIRP requirements.

No. A single lump sum payment will be made following your retirement date.

Your VIRP lump sum payment will be deposited into the same account to which your current payroll is deposited. TCU cannot direct the VIRP payment to any tax-deferred account, such as retirement accounts. The lump sum payment will be distributed to you directly and paid as ordinary income.

 

Future or Continued Employment

No. Your decision not to participate in the VIRP will not change any terms or conditions of your current employment. Unless other commitments have been made, TCU employees are generally employed at will and may be released at TCU’s sole discretion for any reason, with or without advance notice.

The VIRP may achieve TCU’s staff and budget reduction goals, but TCU cannot foresee the degree to which those objectives will be met. It is possible that additional staff reductions may be necessary, including through an involuntary reduction in force.

By participating in the VIRP, you are concluding your employment relationship  with TCU and acknowledge that you have no right to seek or obtain future employment by TCU. It is not possible to make any advance agreements or arrangements at this time to rehire retiring employees in the future. No one at TCU is authorized to make any such agreements or arrangements.

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