A focused Voluntary Separation Incentive Program (VSIP) is available to select employees during the 2025-26 academic year. Through this program, some units will offer a one-time, lump-sum payment to eligible individuals within the time period of the program. Participation is voluntary for qualifying individuals. The program is intended to realize cost savings for participating units, so not all units will participate. The program is also limited to tenured faculty and indefinite academic staff, as cost savings for those positions are more difficult to generate, based on lower attrition rates and long layoff processes. 

General Terms

  1. VSIP provides incentive to incumbents who hold positions to leave employment at UWM. This VSIP is intended to help individual schools and colleges more quickly align their expenses to budgets based on activity metrics and resulting five-year planning (FY 26 to FY 30).
  2. Employees who may be considered for the VSIP are: tenured faculty and academic staff with an indefinite appointment, who, by the date of their separation, are eligible for a partial or full retirement annuity from the State (i.e., 55 years of age and 5 years of service in most cases, with some differences depending on the employee’s start date), and employed by a participating unit.
    1. Individuals who have submitted written notice of retirement/resignation, have been formally non-renewed, or have received notice of pending layoff by the VSIP program announcement date of September 12, 2025, are not eligible.
    2. Individuals who have been provided notice of layoff or an at-risk letter prior to the VSIP program announcement date of September 12, 2025, are not eligible.
    3. Limited Appointees are not eligible.
  3. Vetting by leadership in schools/colleges/divisions will occur at the division, department, employee category and position level. The vetting is designed to identify positions that if vacated, would present significant, on-going cost savings but still preserve the University’s teaching and research excellence and mission.
  4. For all eligible employees, the incentive for the Fall 2025 VSIP is 50% of an employee’s base salary on the date of program announcement, subject to a maximum of $50,000.
  5. The separation payment will be processed prior to an employee’s last date of employment and issued as an off-cycle payment on or prior to their separation date.
  6. Eligible employees will be notified of their eligibility and be approved for participation (and separation date) in the VSIP by October 17, 2025.
  7. The separation date will be January 8, 2026, or May 24, 2026 (the last day of the Fall/Spring contract period) for faculty and indefinite instructional academic staff. Indefinite non-instructional academic staff may request a separation date on or between January 8, 2026, and May 24, 2026.
  8. VSIP participants will not be eligible to be employed by a WRS employer for a minimum of 75 days from the date of separation. Deans/Division Heads/Supervisors may not discuss reemployment with a VSIP participant, including on a temporary or ad hoc basis, prior to an individual’s actual separation or during the 75-day period.
  9. Faculty may continue to supervise graduate students on a voluntary basis for up to 2 years (or longer with relevant Executive Committee approval) pursuant to Faculty Document No. 3134R2 (PDF). These arrangements are not subject to the 75-day separation period noted above and may be discussed and agreed prior to the employee’s separation.

Timeline

ActionDate
Program announcementSeptember 12, 2025
Notification of individual employee eligibility with applicationSeptember 12, 2025
Application period closesOctober 6, 2025
Separation agreements sent to eligible applicantsOctober 13 2025 – October 16, 2025
Separation agreement submission timelineOctober 17, 2025 – December 1, 2025
Separation dateJanuary 8, 2026, or May 24, 2026, for faculty and instructional academic staff with an indefinite appointment

Between or on January 8, 2026, and May 24, 2026, for non-instructional academic staff with an indefinite appointment
Separation payment dateThe separation payment will be processed prior to an employee’s last date of employment and issued as an off-cycle payment on or prior to their separation date

Participating Units

  1. Academic Affairs/Provost’s Office
  2. College of Arts and Architecture 
  3. College of Community Engagement and Professions
    • School of Education
      • Educational Policy and Community Studies department
      • Administrative Leadership department
      • Counseling program, Educational Psychology department
  4. College of Engineering and Applied Science
  5. College of Health Professions and Sciences
    • School of Nursing
    • Student Affairs
    • School of Rehabilitation Sciences and Technology
      • Communication Sciences & Disorders program
      • Athletic Training & Performance Psychology program 
  6. College of Letters & Sciences
    • History
    • Women’s and Gender Studies
    • World Languages and Cultures (formerly French, Italian, Comparative Literature, Spanish, Portuguese, Translation)
    • African and African Diaspora Studies
    • Anthropology
    • Economics
    • Linguistics
    • Political Science
    • Nonprofit Management
    • Human Resources & Labor Relations
    • Urban Studies
    • Center for Economic Development
  7. Division of Community Empowerment and Institutional Inclusivity
  8. Division of Strategic Enrollment Management and Student Success
    • Pathway Advising unit
    • Center for Student Experience & Talent
  9. Libraries
  10. Lubar College of Business
  11. Office of Research
  12. School of Freshwater Sciences 
  13. Zilber College of Public Health

Session Information & Registration

VSIP Presentation Sessions

ETF Presentation Session

Frequently Asked Questions

1. What is the purpose of a Voluntary Separation Incentive Program (VSIP)?
  1. This Voluntary Separation Incentive Program (VSIP) provides a one-time separation incentive for eligible University of Wisconsin-Milwaukee employees.
2. Is the VSIP part of my benefits package?
  1. No, the VSIP is not an entitlement or benefit, but rather is intended to supplement the range of budget management options available to the institution.
3. Who is eligible to participate in the VSIP?
  1. Tenured faculty and academic staff with an indefinite appointment,
  2. Eligible for a partial or full retirement annuity from the State by the date of separation (i.e., 55 years of age and 5 years of service, in most cases), and
  3. Employed by a participating unit.
4. How do I know if I am eligible for partial or full retirement annuity from the State of Wisconsin?
  1. Questions about individual eligibility for partial or full annuity should be discussed with the Department of Employee Trust Funds (ETF). Generally, eligibility is determined as the following:
    1. Individuals between the ages of 55-56 with 5+ years of service – Partial Annuity
    2. Individuals between the ages of 57-64 with less than 30 years of service – Partial Annuity
    3. Individuals between the ages of 57-64 with 30+ years of service – Full Annuity
    4. Individuals 65+ with less than 5 years of service – Partial Annuity
    5. Individuals 65+ with 5+ years of service – Full Annuity
5. Who is not eligible for participation?
  1. Employees who have submitted written notice of retirement/resignation, have been provided notice of non-renewal, or layoff, or received notice of pending layoff prior to September 12, 2025, when the program offering was announced.
  2. Employees who are limited appointees, including those with a concurrent tenured faculty appointment or back up academic staff with an indefinite appointment.
  3. Tenured faculty and academic staff with indefinite appointments who are not eligible for a partial or full retirement annuity from the state.
6. Why are only tenured faculty and academic staff with an indefinite status appointment eligible for the VSIP?
  1. Because of the cost involved, UWM cannot offer the VSIP for all employees and is reserving the option for those subject to long layoff processes. UWM has only ever offered the VSIP to employees eligible for retirement with a full or partial annuity.
7. What is the incentive?
  1. 50% of the eligible employee’s base salary as of September 12, 2025, up to a maximum of $50,000.
8. What are the separation dates?
  1. Tenured faculty and instructional academic staff with indefinite appointment participating in the VSIP may select the following separation dates:
    1. January 8, 2026, or
    2. May 24, 2026
  2. Non-instructional academic staff with indefinite status participating in the VSIP may select a date on or between January 8, 2026, and May 24, 2026.
9. What are the requirements of retirement eligibility under the Wisconsin Retirement System (WRS)?
  1. You are eligible to receive retirement benefits when:
    1. You end all WRS-covered employment; and
    2. You are vested in the Wisconsin Retirement System; and
    3. You reach the minimum retirement age of 55
10. How will I know if I am eligible to participate in the VSIP?
  1. The UWM Department of Human Resources will notify all potentially eligible employees, via email, of their eligibility on September 12, 2025, with a VSIP application.
11. I believe I am eligible for VSIP participation and am employed by a participating unit, but I did not receive a letter informing me of my eligibility. What should I do?
  1. Please contact your assigned HR Business Partner.
12. How is my base salary calculated?
  1. Base salary will be based upon appointment total FTE percentage on September 12, 2025, and does not include any additional pay above base salary.
13. Why is September 12, 2025 the date used to determine the base salary?
  1. September 12, 2025, is the date the university announced the VSIP.
14. When will I receive payment?
  1. The separation payment will be processed prior to an employee’s last date of employment and issued as an off-cycle payment on or prior to their separation date.
  2. If you wish to update your tax withholdings, please review this Workday knowledge base.
15. Is the VSIP lump payment reportable as earnings under the Wisconsin Retirement System?
  1. No. A VSIP lump sum payment is not considered WRS reportable earnings per ETF Retirement System Administration Manual ET-1127.
16. What are my options for disbursement of the VSIP incentive payment?
  1. There are two disbursement options available for the incentive payment.
    1. A lump sum payment.
    2. Contributions to a Health Savings Account, 403(b), 457 or similar plan for which the employee may be eligible at the time of separation within the established contributions for each plan. Employees must have taken the necessary steps to establish such a plan before any contribution can be made to it.
  2. If contributing to SRP 403(b), you must:
    1. Be enrolled with the vendor prior to the first contributions taking place
    2. Complete a Salary Reduction Agreement (SRA) form (PDF)
    3. Write on top of the SRA form: SEPARATION INCENTIVE.
    4. If you need to change it back or stop AFTER the separation incentive is paid, you will need to complete another form indicating the change/stop. Submit both forms at the same time.
      1. Write on top of the second SRA: AFTER SEPARATION INCENTIVE PAID.
  3. If contributing to WDC 457 Plan:
    1. Enroll now with WDC (877-457-9327). You must be enrolled at least one month before the first contributions take place.
    2. Let WDC know the amount and when to expect it to be contributed.
    3. UW System will work with WDC directly to process the contribution.
17. Can I take the incentive payment in combination of the disbursement options?
  1. Yes. However, no combination of the methods selected may exceed the maximum payment amount.
18. Is the VSIP payment taxable?
  1. To ensure accurate information that considers your personal circumstances, you should consult with a tax advisor or consultant regarding tax liability for the VSIP payment. General information about typical tax treatment of elective deferrals follows.
  2. The VSIP payment is subject to Social Security and Medicare taxes. The portion of the VSIP payment used to pay Social Security and Medicare taxes is considered taxable income for federal and state tax purposes, which creates a federal and state tax liability. Therefore, the entire amount of the VSIP payment cannot be tax-deferred with the UW 403(b) SRP or the WDC 457 Program.
19. Will I be required to sign a separation agreement?
  1. Yes.
20. What is the separation agreement submission timeframe?
  1. October 17, 2025 – December 1, 2025.
21. Can I negotiate the separation agreement?
  1. The separation agreement is non-negotiable, though no employee is required to participate in the program if the agreement’s terms are not acceptable to the employee.
22. Will UWM provide me with advice and counsel regarding tax or legal consequences as a result of participation in the VSIP?
  1. No, employees are responsible for consulting their own tax or financial advisor, attorney or another advisor.
23. If I have accrued leave, may I use that to extend my last day of employment, even if it goes beyond the range of separation dates available in the program?
  1. No. Any and all accrued leave, including banked leave, must be paid out in a lump sum upon separation if you choose to participate in the VSIP.
24. After separation under the VSIP, may I be rehired by UWM?
  1. VSIP participants are not eligible to be employed by a WRS employer for a minimum of 75 days from the date of separation.
25. What benefits will employees receive after they have separated from UWM?
  1. Employees are eligible for benefits as prescribed through employee participation in the Wisconsin Retirement System.
26. I would like to retire upon separation. What steps should I take?
  1. Review Wisconsin Department of Employee Trust Funds materials and the Retirement Checklist.
  2. You may contact ETF at 877-533-5020 or 608-266-3285 with questions regarding your retirement.
  3. Review the UWM Retirement and Universities of Wisconsin Retirement page for resources.
27. What if I’m not ready to claim my pension?
  1. You are not required to formally retire and claim your retirement benefits to participate in the VSIP.
28. What happens to my health insurance benefits if I separate without retiring?
  1. Your health insurance coverage terminates at the end of the month in which you separate.
29. What happens to my accumulated sick leave credits if I do not retire upon separation?
  1. Please closely review the Sick Leave Credit Conversion Program Brochure. In most cases, you must be covered under the State of Wisconsin Group Health Insurance Program when you separate to be eligible to use your sick leave credits to pay health insurance premiums. There are limited exceptions.
30. What will happen to my other benefits if I do not retire?
  1. Please review Employee Benefits at Termination. Most benefit coverage ends at the end of the month in which you separate. Contact your benefit specialist if you have additional questions.
31. Am I required to participate in the VSIP?
  1. No. Participation in the VSIP is completely voluntary.
32. Where do I go to learn more about the VSIP?
  1. The UWM Department of Human Resources benefits specialists will hold a VSIP presentation for interested employees on September 18, 2025, and September 26, 2025, from noon–1 p.m.
  2. Wisconsin Department of Employee Trust (ETF) funds will host a retirement presentation for interested employees on September 18, 2025, from 2–3:30 p.m.
  3. Register here: Session Information & Registration
  4. For individual appointments or questions, email benefits@uwm.edu.
33. What is the complete timeline for the VSIP?
34. If I have additional questions that were not answered, who should I contact?
  1. Questions regarding your specific retirement benefits should be directed to ETF.
  2. Questions regarding your specific tax, financial or legal questions should be directed to your personal tax and financial advisors, attorney or another advisor.
  3. For all other questions, please contact benefits@uwm.edu or your assigned HR Business Partner or Benefits Specialist.