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Tacoma Community College Voluntary Separation and Retirement Plan July 1, 2009 through June 30, 2011

The Voluntary Separation, and Retirement and Downshifting Incentive Program for State Employees 2009-2011 Guidelines are an integral component of the plan with the exception of the downshifting provisions and any examples included in the guidelines. The College, and participating employees, will comply with the required OFM issued guideline provisions and requirements.

Institutional Contact William Benjamin, Human Resources, 253.566.5054 voice, 253.566.5380 fax

Purpose The College wishes to establish the Voluntary Separation and Retirement Plan to meet the business needs of the College which are identified in the College’s mission, vision and strategic plan. When necessary, the College executive staff will implement the Voluntary Separation and Retirement Plan management tool when budgetary constraints require a reduction of salary, related benefit costs and FTE usage.

Eligibility To be eligible for a separation incentive, an employee must have permanent status and 3 years of service. In addition, an employee who participates in a State of Washington Department of Retirement Systems (DRS) sponsored retirement plan must have been eligible for normal retirement for at least 12 months.

The term “eligible employee” applies only to those in positions meeting criteria identified by the College, and is not intended to apply to all employees meeting the minimum employment requirements set forth in the guidelines.

Voluntary Retirement Incentive and/or Voluntary Separation Incentive

If eligible, the employee may elect to simultaneously retire from their PERS, TRS or TIAA-CREF retirement plan in accordance with the retirement plan provisions. Otherwise, the employee will resign and separate from employment. Upon retirement or resignation, the employee will receive a taxable cash incentive payment upon approval of the College President.

The formula for the incentive payment is as follows:

Total full completed years of College continuous permanent service at the time of voluntary separation multiplied by one-half (1/2) current monthly salary. The amount cannot exceed the maximum of $30,000.

 Employees who accept the incentive are not eligible for unemployment compensation  The employee is not eligible for placement on any reduction-in-force (RIF) registers or layoff registers  Any employee who returns to State of Washington service within 5 years (as an employee or an independent contractor) must repay the incentive. An exception to this provision is defined in the Voluntary Separation and Retirement Incentive Program Basic Provision guidelines  Opting into the Plan is entirely a voluntary decision to separate from Tacoma Community College service via retirement or resignation  The incentive is not considered income for retirement calculation purposes

Collective Bargaining Agreements

Any employee who is covered by a collective bargaining agreement is subject to the provisions of the agreements.

Health Care Premium Payments Incentive An employee may elect to have all or part of their incentive after-tax payment deposited into an account at the State of Washington Health Care Authority. The employee should contact the Health Care Authority at 1-800-200-1004 to arrange for a deposit of funds from which health care post separation payments can be made. The State of Washington HCA does not have a pretax mechanism in place for receipt of pretax dollars into an account to be used for future health insurance premiums. Any arrangement for a Health Care Premium payment is between the separated or retired employee and the State of Washington Health Care Authority.

Written Agreement Tacoma Community College will obtain a written agreement signed by the employee indicating that they have read, understand and abide by the provisions included in the agreed upon plan. The written agreement will include the specific plan provision and the stated agreement period. The written agreement must also be signed and accepted by the College President.

Reporting Tacoma Community College will comply with the reporting requirements outlined in the Reporting Requirements section of The Voluntary Separation, and Retirement Incentive Program for State Employees 2009-2011 Guidelines