Please refer to the Voluntary Exit Incentive (VEI) - FAS Pilot Program page for the full details.
What is the Voluntary Exit Incentive?
Why is this plan being offered?
The Faculty of Arts & Science (FAS or the Faculty) must reduce its costs to balance its operating budget. While the financial imperatives are pressing, we are also hopeful of minimizing impacts on people wherever possible. The Voluntary Exit Incentive (VEI) Pilot is designed to provide eligible staff members the opportunity to voluntarily exit their role at the Faculty. We hope this will reduce the number of individuals who may otherwise be impacted.
How is the VEI incentive payment calculated?
The exit incentive is a lump sum payment equivalent to four (4) weeks of pay at your regular salary for each completed year of service, with a minimum payment of eight (8) weeks of pay and a maximum payment of fifty-two (52) weeks of pay. This amount is in addition to the pay you will receive for any accrued and unused vacation time as of your departure date, as well as your regular pay for any time worked between the date you receive notification that your application has been accepted and your departure date. All amounts owing will be subject to the required deductions.
What are the “required deductions” from my VEI payment so I understand the amount I will receive?
The only deduction from your retiring allowance is Canadian Income Tax, unless you have an outstanding amount owing to the university (e.g., overpayments of salary) or garnishments. No Canada Pension Plan or Employment Insurance is payable, and the payment is not subject to pension or benefits contributions. If you are unionized, USW and CUPE 254 have agreed to waive union dues deductions.
In Ontario, the income tax that will be withheld will depend on the amount of your gross VEI payment as follows:
- 10% on amounts up to and including $5,000
- 20% on amounts over $5,000 up to and including $15,000
- 30% on amounts over $15,000
For example, if you started work at Queen’s on March 1, 2019, and your current salary is $62,400, your VEI payment would be:
- Five (5) years completed service, times four (4) weeks per year, equals 20 weeks’ pay at your regular salary
- 20 weeks’ pay times $1,200 per week
- Equals $24,000, less 30 percent withholding for income taxes,
- Totaling $16,800, less any additional deductions (see above).
Please also note that if your total income (including the VEI incentive payment and any additional income like salary, pension, or vacation pay) received for any one tax year will be significantly different from your usual annual income, there may be a significant difference in the amount of income tax you will be required to pay for that year. You may wish to speak with a financial advisor to discuss and plan for this possibility.
How and when will the exit incentive be paid?
The incentive will be paid as a lump sum “retiring allowance,” a special type of payment that is not subject to deductions for CPP, EI, or pension. The University will make this lump payment on your next regular pay date after your resignation is effective. However, employees with over 10 years of service may choose to receive their lump-sum payment in two equal installments: the first to be made on the next regular pay date after your resignation is effective, and the second on the first regular payroll date in 2025.
Will the VEI plan be imposed on staff members?
No. The plan will not be imposed. The plan is voluntary, meaning that the decision to apply is entirely at the discretion of the eligible individual.
How many approvals are available?
There is no set number of approvals. The total number of approvals granted will depend on the number of applications received, the positions held by those applicants, and the operational needs of FAS. The goal is to minimize the impacts on staff while still meeting financial targets and delivering on the academic and research mission of the Faculty.
If FAS does not receive enough applications, will there be layoffs?
The Faculty has focused on measures short of layoffs to get to a balanced budget. While FAS would strongly prefer that the necessary budget reductions can be accomplished through voluntary departures, the size of the deficit is significant and all options must be explored.
Will all vacated positions be left unfilled?
The VEI provides an opportunity to align our cost structure with our operational needs. Typically, positions left vacant due to departures will be eliminated. On an exceptional basis, some replacement hiring may take place.
If my application to resign under the VEI is approved, can I apply for other positions at Queen’s?
Yes. You can apply for any term-limited non-staff position or keep any such position you might already have, with no ineligibility period. This would include positions covered by Collective Agreements with QUFA or PSAC (such as term adjuncts, teaching assistants, research assistants) as well as exam proctoring. You will be eligible for all other employment opportunities at Queen’s three years after your departure date.
Eligibility
Who is eligible?
Employees in FAS who hold a continuing staff appointment, and who:
- hold a continuing FAS staff appointment (research, grant and contract roles are excluded);
- have a minimum of six (6) months’ continuous service as of March 26, 2024; and
- have not already given notice of resignation or retirement.
Will all Applicants be approved?
No. Consideration of applications will be made by the Faculty to ensure that academic and operational priorities are sufficiently met. Submission of an application is not a guarantee of its approval. Careful consideration will be given to all applications.
Why is the VEI currently only available to FAS staff?
The current need for cost reductions is most acute in FAS. If the VEI Pilot in FAS is effective in achieving cost savings while reducing impacts on people, the University will consider expanding the VEI to other parts of the University, where necessary. VEI is a time-limited pilot. There are no plans to offer the VEI again at FAS.
Is the VEI available to faculty members?
No. There is a separate plan available to faculty members. While the plan for faculty members is limited to those who currently have sufficient age and years of service to qualify for retirement, the VEI is open to any eligible FAS staff member with a qualifying appointment who has continuous service of as little as six (6) months. While the plans are similar in that they both provide long-service employees with a payment equivalent to one year’s regular salary, there are necessarily some key differences. For details on the Faculty Voluntary Retirement Plan, see the Voluntary Retirement Plan for Eligible Faculty Members website.
Other Payments, Benefits, and Programs
Will I have to repay my pregnancy or parental leave top-up if I am approved for VEI and depart without completing six (6) months of post-leave employment?
No. If the university approves your application, any pregnancy/parental leave top-up repayment that remains owing as of your departure date will be waived given these unique circumstances.
What if I have unpaid vacation time at my exit date?
Accrued and unpaid vacation time will be paid on the next regular payroll date following your departure.
Will I have group benefits coverage after I leave?
You may be eligible for retiree benefits, depending on your age and length of service. Information on eligibility and coverage under Retiree Group Benefits is available on the Retiree Benefits - A Total Compensation Guideline document. Your eligibility status for retiree benefits will be confirmed when you are notified of the decision regarding your application.
Eligible staff can enroll in most of the same benefits they have as an active employee immediately prior to retiring. Some of the benefits change and/or are reduced in the Retiree Group Benefits plan and the cost-sharing of premiums is also different for Retiree Group Benefits.
If you are not eligible for retiree benefits, your premium-based benefit coverage will cease upon departure. However, you will remain eligible to access the Employee and Family Assistance Program (“EFAP”) for three months after your departure date. EFAP services include Career Planning support, Resiliency Coaching, and Retirement Planning, in addition to many other support services. For details, please visit one.telushealth.com or download the TELUS Health One app using the Username and Password information below.
Username: queensu
Password: telushealth
Will I be eligible to collect my pension on my departure date?
Pension eligibility depends on your age and length of service. In order to be eligible for an unreduced pension, you must be at least age sixty (60) and have a combined total age plus length of service of eighty (80) years or more. You may also have the option to begin collecting your pension early at a reduced rate, or to move the value of your pension into a retirement account. For more information on your pension entitlements, please see the Plan Basics page, on the University Pension Plan website.
Where do I find my seniority and service date?
If you are a USW member please visit: queensu.ca/humanresources/sites/hrwww/files/uploaded_files/union-associations/USW_SeniorityList_2024-01-15.pdf
If you are a CUPE member please visit: queensu.ca/humanresources/sites/hrwww/files/uploaded_files/union-associations/CUPE254_SeniorityList_2024-04-01.pdf
To validate your service date at the University, email: FASVEI@queensu.ca
Please note that your seniority date and service date may be different if you have been employed at Queen’s in more than one role.
What if I won’t be eligible for an unreduced pension until after my departure date?
If you will be eligible for an unreduced pension on or before June 1, 2025, you may have the option to be placed on an unpaid leave of absence until your unreduced pension eligibility date. This will require you to defer receiving your VEI incentive payment until the end of your leave. For more information, please contact fasvei@queensu.ca.
What is the difference between the VEI and Reduced Period of Responsibility?
The VEI is a time-limited opportunity for staff to elect to resign their employment, in return for which they will receive a lump-sum payment equivalent to four (4) weeks of pay at their regular salary per completed year of service, with a minimum payment of eight (8) weeks of regular salary and a maximum payment of 52 weeks of regular salary.
The Reduced Period of Responsibility Policy (RPR) allows full-time employees with a continuing appointment and at least two years of continuous service to request approval for a reduction in working hours under certain circumstances. The VEI and the RPR are separate. Employees currently on RPR are eligible to apply for the VEI.
If there is a layoff, what will I be entitled to?
Please note that the VEI is a limited-time opportunity for eligible, approved staff to elect to exit the University in return for which they will receive a lump-sum payment equivalent to four (4) weeks of Regular Salary per completed year of service, subject to the stated minimum and maximum payment amounts. If FAS is required to move forward with layoffs, entitlements at layoff will not be based on the VEI but on the applicable Collective Agreement for unionized workers and the applicable employment contract for non-unionized employees. There may be a significant difference between the VEI lump sum payment and the applicable Collective Agreement/Employment Contract entitlements in the event of a layoff, so staff are encouraged to ask questions and seek out the information they need in order to make an informed decision.
How do I find out what my layoff entitlement is?
If you are a member of a union, check your Collective Agreement on the Unions and Associations website.
For USW, see Art. 18.26 and Appendix F. For CUPE 254, see Art. 12.01 and Appendix B. If you have any questions, please contact your union or email fasvei@queensu.ca.
If you are not a member of a union, check your employment agreement or if you have questions email fasvei@queensu.ca.
There will also be information sessions held by Zoom open to all FAS staff at the following times:
- April 3, at 10:00 a.m.
- April 10, at noon
- April 18, at 2:00 p.m.
Questions
I still have questions. Who do I ask?
You can forward any questions to fasvei@queensu.ca or plan to attend one of the information sessions held by Zoom which will be open to all FAS staff at the following times:
- April 3, at 10:00 a.m.
- April 10, at noon
- April 18, at 2:00 p.m.