Why was the plan to offer voluntary separation incentive packages (VSIP) to employees discontinued when it seemed like a good way to achieve permanent payroll savings?

April 21, 2020

The plan was discontinued because, relatively speaking, it was a more expensive way to accommodate early retirements, with savings not being realized until future fiscal years. Although UWM was aware of those VSIP costs, budget modeling prior to the COVID-19 pandemic dictated that it could be a helpful tool in accomplishing long-term savings. However, given the significant budget shortfalls due to the COVID-19 pandemic, there is greater urgency to address the shortfalls than the VSIP affords. It also no longer makes sense to make large retirement-based payments to a small number of individuals when institution-wide and position-specific furloughs are being considered.