UNIVERSITY PARK, Pa. – As a critical step in its efforts to attain a sustainable financial operating model for its Commonwealth Campuses and position the university for a successful future, Penn State is offering eligible full-time faculty, staff and administrators employed at its Commonwealth Campuses the option to leave Penn State with a significant pay and benefits package.
The Voluntary Separation Incentive Program (VSIP), with enrollment open now through May 31, provides a financial incentive to eligible faculty and staff at the Commonwealth Campuses who wish to pursue retirement or other professional opportunities outside Penn State. At this time there are no plans to implement a VSIP at University Park, the law schools or the College of Medicine, however, that decision may be reevaluated based on future needs.
“With the challenges facing all of higher education, our entire institution needs to evolve in order to continue serving the residents of Pennsylvania,” said Penn State President Neeli Bendapudi. “We are currently working to identify every opportunity to strengthen our Commonwealth Campuses and achieve our budgetary objectives. This program allows us to make progress toward our organizational goals while also demonstrating the highest degree of respect and support for our employees who choose to partake in this program. As always, our teaching, research and service mission to the commonwealth remain at the very core of all decision making.”
Margo DelliCarpini, vice president for Commonwealth Campuses, is collaborating with faculty, staff and campus leadership across the Commonwealth to identify the needs and opportunities for each campus.
“We’re working collectively with all of our Commonwealth Campuses and are looking at opportunities for each campus to focus on distinct areas of excellence, align each offering with the needs of students, and reduce expenses,” DelliCarpini said. “While we know this will necessitate changes on our campuses, our commitment to providing a quality education for students from all regions of the Commonwealth remains unwavering. We are actively exploring innovative approaches to uphold our educational mission, focus on student needs, and continue serving our diverse student population across the state. This VSIP is just one tool of many we are employing to invest in the future of the University and in our employees for the long term.”
The VSIP, developed with input from campus chancellors, provides campus academic and business units an opportunity to achieve desired cost savings and efficiencies, while providing a financial benefit for employees who elect to participate.
“I am grateful for all the contributions of our faculty and staff. Our hope is that those nearing retirement or who want to start another chapter in their professional lives will view this as an opportunity to do just that with the added security of a financial cushion from the University,” Bendapudi said.
Eligibility
Information on the specific eligibility criteria and the process for participating in the VSIP can be found on the Human Resources website.
Benefits
Eligible employees who choose to voluntarily terminate their employment with the University under the program and satisfy all the conditions described in the program documents, will be entitled to a lump sum payment equal to 12 months of their base salary, less applicable withholdings and deductions. Employees who are eligible for and elect to continue the University’s group medical, dental, and/or vision coverage under COBRA for themselves and/or their covered dependents, as described in the plan documents, the University will subsidize the applicable COBRA premium for a period of up to six months, so that the COBRA premium will be equal to what they would have paid for the University’s group medical, dental, and/or vision coverage as an active employee. There are additional benefits for eligible employees who are within 36 months of satisfying the University’s age or service retirement eligibility requirements that are detailed in the plan documents.
More information and links to the necessary forms to apply for the VSIP are available on the Human Resources website. Individuals with questions should email VSIP2024@psu.edu.
“This program is entirely voluntary, and we encourage employees to consult with their support network, a financial consultant and their personal attorney, as appropriate, about participating in the program,” said Jennifer Wilkes, vice president for Human Resources. “Individuals need to review the opportunities before them and determine if volunteering for the program is right for them.”