Benefits

Voluntary Retirement Incentive (VRI) for Tenured Faculty – 2025

The University of Washington is offering a time-limited Voluntary Retirement Incentive (VRI) to eligible tenured faculty. The VRI provides a one-time cash payment in recognition of service and gives schools, colleges and campuses added flexibility for future academic planning. Participation is entirely voluntary.

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This VRI differs from earlier UW programs. Prior versions deposited the incentive into a VEBA for tax-free medical reimbursements; the 2025 VRI pays a direct cash amount (taxable), giving you more freedom in how you use it.

Who is eligible

You may be eligible for the VRI if all of the following apply:

  • You are a tenured faculty member
  • You are actively participating in the University of Washington Retirement Plan (UWRP) (Faculty enrolled in TRS are not eligible.)
  • You are age 62 or older by December 31, 2025
  • Your last day of UW employment will be December 31, 2025

Eligibility is also subject to your dean’s approval and the Provost’s announced election period. Participation is entirely voluntary.

What the incentive provides

The incentive equals one week of your annual tenure-backed (A-component) salary as of 12/31/2025 for each year of retirement-eligible service, capped at 20 weeks. It’s paid as a one-time cash payment and is subject to applicable taxes and deductions. It is not considered income for retirement benefit calculations and is not eligible for unemployment compensation. If you hold split tenure, the payment is prorated by your tenure roster percentage (not FTE).

Key dates (2025)
  • Election window: October 15–November 12, 2025
  • Final date to return the VRI agreement: Return the VRI agreement by 5 p.m. on December 15, 2025, or after the required 45-day period from your application date.
  • Last day of UW employment: December 31, 2025
  • Payment timing: January 9, 2026

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What you give up (reemployment)

By electing the VRI, you waive your vested right to partial reemployment and may not return to any UW faculty position for five years unless an exception is granted by the Provost. If reemployment flexibility matters to you, review Academic Personnel & Faculty’s guidance on working after retirement before deciding.

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Taxes and financial planning

The incentive is taxed as wages; your net will depend on your individual tax situation. The incentive is not counted as income in retirement benefit calculations and is not eligible for unemployment compensation. Consider consulting a tax advisor and meeting with a TIAA or Fidelity financial consultant to review your overall retirement picture.

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How to participate

1. Review APF’s Retiring from UW web page and consult with your dean or chancellor to ensure that they will be able to approve your VRI request.

2. Complete the UW Retirement Application during the October 15 – November 12 VRI election window. Be sure to check the Voluntary Retirement Incentive (VRI) checkbox on the application.

3. UW Benefits will work with your dean or chancellor to confirm approval of your VRI request. Once their approval is complete, UW Benefits will send you a VRI Agreement for your review and signature.

4. Your VRI lump sum payment will be distributed on January 9, 2026.

How approval works

Submitting an application does not guarantee approval. Applications must be approved by your dean or chancellor and can be denied based on operational need and/or if the cost savings to the University is less than the incentive amount. If approved, separation is required on December 31, 2025. Once you sign the VRI agreement, it becomes irrevocable after a seven-day revocation period. Faculty who had already given notice or signed an agreement setting a retirement date before the VRI was adopted are generally not eligible unless the Provost approves a date change that yields savings exceeding the incentive.

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FAQs

The VRI in prior years contributed an incentive payment to a VEBA (tax-free health reimbursement arrangement) while the 2025 VRI will provide a taxable lump sum cash payment

The incentive is not considered income for retirement benefit calculations.

Yes. Tenured faculty who are enrolled in TRS (rather than UWRP) are not eligible for this VRI. In addition, faculty must be age 62 or older by Dec. 31, 2025 to qualify.

The program supports academic planning and provides a time-limited pathway for retirement transitions.

Once your retirement application is received by UW Benefits, they will confirm approval with the dean/chancellor that your request is operationally and financially feasible. If the dean/chancellor approves the VRI request, UW Benefits will then email you the VRI Application, Acknowledgment, and Agreement to review, sign and return by Dec. 15 or after the required 45-day period from your application date.. Should your request for VRI be denied, UW Benefits will alert you and work with you to determine if you still want to proceed with your retirement application.

No. Dec. 31, 2025, must be the last day of UW employment.

You can view what Workday currently records as your tenure value by:

  • Logging in to Workday and clicking on “Academic” in the left-hand menu.
  • Under your primary appointment, click on the magnifying glass in the “Appointment” column for your primary appointment.
  • Scroll to the bottom of the appointment information page; if a tenure value exists, it will be listed there.
  • Important note for School of Medicine: Tenure values in Workday will not be accurate until 2026; official tenure data are determined from original offer letters and other formal records.

Not under this voluntary retirement initiative program; participants waive partial reemployment rights and may not return to any faculty position in any UW school/college for five years unless the Provost grants an exception. You may be hired into any staff position in any school/college including the one in which you retired.

Participating in the VRI doesn’t impact the academic privileges associated with emeritus status or your ability to apply for the status. See: Emeritus Appointments and Re-Employed Retirees – Academic Personnel & Faculty.

Please review the Insurance during retirement web page to understand your options.

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Who to contact

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