Voluntary Separation Incentive Program (VSIP) For Retirement-Eligible Tenured Faculty

A NU faculty member is eligible to participate in the VSIP only if the faculty member meets each of the three following criteria:

1. has a continuous appointment (tenure);
2. is at least sixty-two (62) years old at the Date of Separation; and
3. has completed at least ten (10) years of service upon the Date of Separation, as determined by the University's Human Resources office.

The following faculty members are not eligible to participate in the VSIP:

1. pre-tenured faculty (specific term/tenure track);
2. non-tenured faculty (e.g. lecturers, senior lecturers, extension educators, professors of practice, research faculty);
3. medical, veterinary or similar professional residents/interns;
4. postdoctoral research associates;
5. faculty already party to a phased retirement agreement; and
6. retirees.

No, the VSIP has a limited window for which applications will be accepted. Applications will be accepted only during the time period from September 1, 2025 through 5:00 p.m. CST on September 30, 2025.

You are eligible to participate in the VSIP if you turn sixty-two (62) years old any time before the designated Date of Separation and meet the other two criteria.

Approved faculty members will be required to separate from their University employment on June 30, 2026, for annual twelve-month appointments and August 15, 2026, for nine-month academic year appointments ("Date of Separation").

No, however, you must have ten (10) years of service with the University of Nebraska as of the Date of Separation to be eligible. Your years of service will be determined by the Human Resources Benefits Office.

While NU intends to allow as many eligible faculty members to participate in the VSIP as possible, each campus reserves the right to limit the total number of participants in order to preserve the viability of programs and services, as well as to remain fiscally responsible.

Yes, however, the VSIP Separation Date may not be extended to accommodate faculty development leaves that begin on or after January 1, 2026. In other words, faculty who have an approved faculty development leave that begins on or after January 1, 2026, will need to forgo the leave in order to participate in VSIP.

Faculty on leave Fall 2025 will need to return January 1, 2026 and the Separation Date will be adjusted to allow for the full academic year of work required by BOR Bylaws.

BOR Bylaws (3.4.3.1) require that faculty awarded a faculty development leave must return to their regular assignment for at least one academic year following the leave. Thus, faculty who elect to participate in the VSIP program with a separation date on June 30, 2026 for annual twelve-month appointments and August 15, 2026 for nine-month academic year appointments are not able to accept a paid faculty development leave in spring semester 2025-26.

The application period for the VSIP begins on September 1, 2025 and ends on September 30, 2025. A link to the VSIP application will be made available soon. To apply for the VSIP,  fill out the online form or download and complete the VSIP Application Form from the link included in the letter from the NU System HR Office. You can submit the completed form online or in printed form to the Office of the Executive Vice President & Provost, Voluntary Separation Incentive Program, Attn: Dr. David S. Jackson, 3835 Holdrege Street, Lincoln, NE 68583, on or before the close of business (5:00 p.m. CST) on September 30, 2025, unless prior arrangements have been made with that office. Application forms that are mailed must be postmarked on or before September 30, 2025.

On or before November 3, 2025, VSIP applicants will be notified in writing whether their applications have been approved. If approved, the notification will include instructions on how to pick up and execute the VSIP Separation Agreement.

VSIP Separation Agreements will be available for pick up from November 4 through November 21, 2025. You will be granted a period of not less than forty-five (45) calendar days to review the proposed Separation Agreement before signing and submitting it.

If you elect to sign the Separation Agreement, you must submit it to the Office of the Executive Vice President & Provost on or before the close of business (5:00 p.m. CST) on January 5, 2026, unless prior arrangements have been made with that office. VSIP Separation Agreements that are mailed must be postmarked on or before January 5, 2026. You will not be allowed to participate in the VSIP until the Separation Agreement has been executed and has become effective.

The application period for the VSIP will begin on September 1, 2025, and will end on September 30, 2025. Applications submitted later than 5 p.m. CST on September 30, 2025, will not be considered.

Your campus Chancellor will notify you no later than November 3, 2025, as to whether your application has been approved. If approved, your notification will include instructions on how to obtain your Separation Agreement.

The Chancellor ultimately will decide whether to approve a voluntary separation agreement for any eligible faculty member who has applied to participate in the VSIP, taking into consideration the following criteria: (a) the faculty member has met all requisite eligibility requirements to participate in the VSIP, and (b) the faculty member's separation will not hinder the unit's ability in the short term to achieve its strategic and organizational missions.

You may submit a request in writing for reconsideration of the decision to the Office of the Executive Vice President and Provost, Attn: Dr. David S. Jackson.

In order to be considered, any reconsideration request must be in writing and hand delivered or sent by the U.S. Postal Service postmarked no later than thirty (30) calendar days from the date of the occurrence of the matter giving rise to dispute or disagreement, or within thirty (30) calendar days after the faculty member, through the use of reasonable diligence, could have obtained knowledge of the occurrence of the matter giving rise to the dispute or disagreement. Requests for reconsideration sent by facsimile, electronic mail, or campus mail will not be accepted.

You may withdraw an application to participate in the VSIP at any time prior to submitting an executed Separation Agreement. To withdraw an application, you should download and complete a Withdrawal Form and submit it to the Office of the Interim Executive Vice President and Provost. Withdrawal Forms must be hand-delivered or date-stamped and mailed via U.S. Postal Service on or before January 5, 2026, unless prior arrangements have been made with the Office of the Interim Executive Vice President and Provost.

You also may revoke a submitted Separation Agreement within seven (7) calendar days following the date that you sign the agreement. Revocation of the Separation Agreement must be clearly stated in writing, must be signed by you, and must be received by the Office of the Executive Vice President and Provost within the revocation period. Revocations must be hand-delivered or date-stamped and mailed via the U.S. Postal Service. Revocation of the Separation Agreement will constitute an automatic withdrawal of your application to participate in the VSIP.

Consultation with a financial planner and/or tax advisor is very important. The VSIP offers a very significant financial incentive, and the university is committed to maintaining opportunities for voluntary on-going academic, social, and intellectual connections for retirees.

At the same time, it is critical that each eligible employee consider the financial and personal impact of this date of retirement or resignation rather than a later date. Such impacts include a potential change in retirement and social security income and possibly significantly higher premiums for health and dental coverage. For many eligible employees, these changes would have taken place in the near future, regardless of an incentive plan.

The plan, therefore, provides an opportunity to enhance resources for an imminent retirement or resignation. For those individuals who had not planned to retire or resign in the next few years, these impacts need to be weighed against the opportunities presented by a significant income infusion and full retirement.

Approved faculty members who have fulfilled the requisite terms for participating in the VSIP will receive a lump-sum payment that is equivalent to seventy percent (70%) of faculty member's annual base salary as of October 1, 2025, less any required deductions. The faculty member's base salary is the base salary associated with the faculty member's appointment and does not include any other payments, such as additive pay or stipends. The base salary for VSIP calculation is not with “institutional base” salary used for grant purposes. This VSIP incentive pay is not eligible for employee retirement deduction or an employer retirement contribution.

The base salary is the "9 months over 12" or 12-month faculty salary in effect at October 1, 2025, and does not include any other payments such as summer sessions, overloads, or other additional payments, such as professorship or administrative stipends. If you have questions about your base salary or would like to obtain an individualized VSIP calculation, please contact your Department or College HR representative.

Yes, the University will automatically deposit the participant's VSIP payment into the same direct deposit account used for the participant's regular paycheck.

If a participant's bank account changes following the Date of Separation, but prior to receipt of the incentive payment, the participant must notify Payroll of the change in direct deposit information.

VSIP payments for 12-month faculty will be made on July 31, 2026. VSIP payments for 9-month faculty will be made on August 31, 2026.

Yes, because the VSIP incentive payment constitutes income to the participant, all applicable payroll deductions will be withheld from that payment (including federal income tax, Nebraska state income tax, and FICA). The university encourages participants to consult with their tax and financial advisors, as well as with representatives of their retirement plans. VSIP participants may modify both their federal income tax and Nebraska state income tax withholding rates through Firefly if they deem it necessary.

This VSIP incentive pay is not eligible for employee retirement deduction or an employer retirement contribution.

No, the Internal Revenue Service regulations preclude the deferral of the VSIP incentive payment to another tax year.

A participant may designate a beneficiary to receive the VSIP incentive pay should the faculty member die before the VSIP incentive pay is distributed. This designation will be reflected within the Separation Agreement signed by the participant.

The primary benefit to an eligible faculty member who chooses to voluntarily relinquish his or her employment, tenure, and continuing employment status at the University through retiring, is that the faculty member will receive a cash incentive payment that otherwise is not available.

The decision to participate in the VSIP is solely that of the eligible employee subject to certain limitations stated in the VSIP Program Summary.

No, faculty members electing to participate in the VSIP will no longer be able to participate in the University's health insurance plans except to the extent permitted through the University of Nebraska's retiree insurance program or to the extent permitted under the Consolidated Omnibus Budget Reconciliation Act ("COBRA").

Faculty members participating in the VSIP will have their elected insurance coverage continued through the date of their last regular paycheck. (VSIP payments for 12-month faculty will be made on July 31, 2026. VSIP payments for 9-month faculty will be made on August 31, 2026.)

To discuss continuation of your insurance coverage through the University of Nebraska benefit plans, please contact your campus Benefits Office prior to retirement.

You can make changes during the University of Nebraska open enrollment period during November 2025 and effective January 1, 2026. At the time of retirement, you may change who is covered under your insurance plan.

Yes, the normal rules governing retirement distribution will apply to you following your separation from employment under the VSIP. The rules affecting how much and when a participant may begin receiving retirement payments are completely independent of the VSIP. This is true for all retirement plans.

Before enrolling in the VSIP, participants are encouraged to contact a retirement plan representative (TIAA or Fidelity) and your campus Benefits Office to find out more about retirement benefits.

An estimate of retirement benefits can be obtained by contacting a representative with the employee's selected retirement plan.

The following contacts for the two University of Nebraska retirement benefit providers are:

TIAA
To schedule a one-on-one session with a TIAA representative, call 1-800-732-8353

Fidelity
To schedule a one-on-one session with a Fidelity representative, call 1-800-642-7131

Contact the Social Security Administration (http://www.ssa.gov). The general toll-free phone number for the Social Security Administration is 1-800-772-1213. The Lincoln office is located at 100 Centennial Mall N, Room 240, Lincoln, Nebraska 68508.

Participating faculty members who have a balance of vacation hours and floating holidays will receive a lump sum payment of the accrued balances in their final paycheck. Payment is made at the individual's current rate of pay as of the Date of Separation.

VSIP participants have voluntarily retired from their tenured positions in exchange for a financial incentive. All VSIP participants are ineligible for rehire in any position, at any FTE, and from any funding source during their VSIP payout year. The general assumption is that VSIP participants will not be reemployed at the university again in the future.

Participating faculty members with active grants should contact their campus Sponsored Programs Administration Office related to options with the grant.

VSIP participants have voluntarily retired from their tenured positions in exchange for a financial incentive. All VSIP participants are ineligible for rehire in any position, at any FTE, and from any funding source during their VSIP payout year. The general assumption is that VSIP participants will not be reemployed at the university again in the future.

CONFIDENTIAL RESOURCE FOR ALL FACULTY QUESTIONS:

Dr. Kendra Schmid
Interim Vice Provost
Executive Vice President & Provost’s Office
kendraschmid@nebraska.edu