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| Voluntary Separation Program FAQs | ||||
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References  Implementation Q: How does an agency develop a Voluntary Separation Program (VSP) for its employees? A: An agency must develop its VSP based on the guidelines approved by the Budget and Control Board. Except where designated as an "optional" feature, all components of the approved guidelines serve as the minimum requirements for the agency's VSP. A sample program is available through the OHR website to assist agencies in developing a VSP. Q: When an agency is consulting with the Office of Human Resources (OHR) to implement the VSP, what should the agency submit for review? A: Documentation to be submitted to OHR is as follows: The VSP the agency intends to distribute to employees; and a demonstration of recurring cost savings over two fiscal years. (The demonstration of cost savings can be an estimate based on total salaries and fringe benefits of the estimated number of participants, VSP costs, and other expenditures or savings related to the Program.) Optional documentation that OHR strongly encourages agencies to include are: VSP Agreement and Release and Acknowledgement of Notice. Participation Eligibility Q: Who is eligible to participate in the VSP? A: According to the guidelines, employees in full-time equivalent (FTE) positions, including TERI employees, are eligible to participate in the VSP. Agency heads, employees who have submitted a notice of resignation prior to the effective date, and employees who participate in the Retirement Incentive Plan are not eligible to participate in the VSP. In accordance with VSP guidelines, agency heads make the final decision concerning which employees are eligible to participate. Q: Can the agency require an employee to participate in the VSP? A: Participation in the VSP is voluntary. Reemployment After VSP Q: Can an employee return to an FTE position after participating in the agency's VSP? A: A participating employee cannot return to an FTE position with the agency for two years from the date of separation unless the employee reimburses the agency from which the employee separated on a pro-rata basis for the benefits received. Q: Can an employee who participates in the VSP return to his former agency or another agency in State Government in a temporary, temporary grant, or time-limited project position? A: An employee can return to a temporary, temporary grant, or time-limited project position. Incentives Q: Is there a maximum incentive payment an employee can receive if participating in the VSP? A: The incentive payment may not exceed one year of the employee's base salary. Q: Does an employee participating in the VSP forfeit all unused annual and sick leave? A: Upon separation a participating employee will receive payment for any unused annual leave balance as provided in the State Human Resources Regulations. Upon separation other than by retirement from State Government, an employee forfeits all unused sick leave. Q: Is the agency required to include health and dental benefits in the VSP? A: Providing benefits such as the employer contribution of health and dental benefits for one year is an option but not a requirement of the VSP. Consideration to Participate Q: How much time must an agency allow an employee to consider participation in the VSP? A: In accordance with the Age Discrimination in Employment Act and the Older Workers' Benefit Protection Act, an employee must be offered 45 calendar days from the date the employee receives notification of the VSP to consider participation. An individual employee may waive the 45-day period. Q: Once the employee signs the VSP agreement and release, can the employee rescind the agreement and decide not to participate? A: In accordance with the Age Discrimination in Employment Act and the Older Workers' Benefit Protection Act, an employee has seven calendar days from the date of executing the agreement and release to rescind his decision to participate. An individual employee may not waive the seven-day period. FTE Deletion Q: Is the agency required to delete the FTE position after it has been vacated by an employee participating in the VSP? A: The agency is no longer required to delete an FTE position after the participating employee has vacated the position. Cost Savings Demonstration and Reporting Requirement Q: Within what time period must an agency demonstrate cost savings? A: The agency must be able to demonstrate an overall cost savings within two fiscal years beginning with the fiscal year in which the VSP was implemented. Q: What information should the agency provide to demonstrate cost savings? A: The Office of Human Resources has provided the Voluntary Separation Program Reporting Forms to assist an agency in providing the necessary information. The forms are available on the OHR website. Q: Are there any reporting requirements after an agency implements the VSP? A: An agency is required to report the results of the VSP to the Budget and Control Board following the effective date of implementation. The Office of Human Resources has provided two forms to assist an agency in reporting the required information. Grievance Rights Q: Is the exclusion of an employee or classification from participation in the agency's VSP a grievable or appealable action? A: Exclusion from participation is not a grievable or appealable action. Agency heads make the final decision based on fair and objective criteria concerning which employees are eligible to participate in the VSP.
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| THE LANGUAGE USED IN THIS DOCUMENT DOES NOT CREATE AN EMPLOYMENT CONTRACT BETWEEN THE EMPLOYEE AND THE AGENCY. THIS DOCUMENT DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. THE AGENCY RESERVES THE RIGHT TO REVISE THE CONTENT OF THIS DOCUMENT, IN WHOLE OR IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH CREATE ANY CONTRACT OF EMPLOYMENT. |