To be eligible for payment without physically working: ◦ Recipients must provide...

To be eligible for payment without physically working:◦Recipients must provide “consideration.” ◦Exchange for payments.◦Payment cannot be retroactive.

“Consideration”:

◦Essential for a binding contract. ◦Something of value to the parties.

◦Exchanged for the performance by the other party.

◦Cannot be something already entitled.

  Example: With respect to faculty, the

consideration would be relinquishing tenure rights in exchange for the incentive payment.

Exit incentive based on retirement eligibility:

 1.Non-discriminatory. 2.Written in plain language.3.Voluntary whether or not accepted.4.Provide sufficient time to consult an

attorney.5.Allow sufficient time to change their mind.

"That portion of the employer's organization from which the employer chose the persons who would be offered consideration for the signing of a waiver and those who would not be offered consideration for the signing of a waiver." 29 C.F.R. § 1625.22(f)(3) (B).

A VEIP can be tailored:

◦Focus on specific departments. ◦Preserving critical talent in some areas. ◦Targeting surplus talent in other areas.

◦Work very closely with Legal Affairs.