Voluntary Separation Incentive Program

VSIP is part of Rice’s ongoing effort to use resources wisely and make strategic investments in the University’s long-term success. This one-time, voluntary benefit is designed to provide eligible staff with transition support should they wish to participate. The program is designed to ensure thoughtful knowledge transfer and consider role realignment to better serve Rice’s evolving needs.

Eligibility Criteria

To be eligible for VSIP, a staff member must meet the following criteria by August 1, 2025:

• Benefits-eligible staff member
• 50 years of age or older
• At least 3 years of cumulative service
• Not 100% funded by grants ("soft money")
• Not in a temporary position
• Not already a Rice Retiree
• Have not submitted for termination in iO (regardless of whether the action has been completed or not)

Incentive

The incentive is based on years of eligible cumulative service at Rice:

• 3–4 years: 3 months of base pay
• 5–9 years: 6 months of base pay
• 10–14 years: 9 months of base pay
• 15+ years: 12 months of base pay

Your base pay and length of service at the time of separation will be used to calculate this amount. The incentive will be offered as a lump sum payment based on the staff member's annual salary.

Medical Insurance Subsidy

To support eligible staff between the ages of 60 and 64, Rice will offer a medical insurance subsidy to those enrolled in Rice medical coverage for FY26 to help cover the cost of health insurance until the staff member becomes eligible for Medicare.

To qualify, eligible staff must be at least 60 years old by August 1, 2025, and enrolled in Rice medical coverage for FY26.

Those who meet the age and enrollment requirements will receive a lump sum payment based on Rice’s FY26 monthly HMO employer contribution of $722. The lump sum is calculated by multiplying $722 by the number of full months between the staff member's separation date and the month they turn 65.

Example:
An eligible staff member who is 64 and enrolled in Rice medical coverage separates on December 31, 2025, and turns 65 in March 2026. Their subsidy would cover two months (January and February), resulting in a lump sum payment of: 2 × $722 = $1,444.

Separation Dates

Eligible staff members can select their preferred separation date on the interest form. However, supervisors and school or unit leaders will have final approval. Separation date options are as follows:

• September 30, 2025
• December 31, 2025
• March 31, 2026

Final timelines will be shared on August 1, 2025, as part of the staff member's separation agreement.

Timeline

Plan Document

The VSIP program is governed by a Plan Document that was created in partnership with legal counsel to ensure that the program design complies with employment law. Please review this documentation for the terms and conditions of the program.

Questions?

Chat with Sammy (HR's chatbot) or contact Human Resources at vsip@rice.edu.