An employee’s participation in basic retirement plans (UWRP; PERS 1, 2 or 3; TRS 1 or 2; LEOFF 2), and optional retirement savings plans (VIP and WA State Deferred Compensation) ceases upon separation from employment.
Review your retirement plan rules and determine what employment restrictions apply and what taxes and penalties may apply if you withdraw the funds. UWRP and VIP funds are not available to you for withdrawal if you continue to work at the UW at a reduced or temporary capacity. IRS rules require the complete termination of all employment before an employer can allow access to these funds. Contact UW Benefits about funds withdrawal if you are age 59 ½ or above, as special rules apply for VIP participants. Participants in the Washington State Deferred Compensation Program should contact the program directly.
DCAP may not be continued after layoff. Only bills for services incurred prior to your layoff date can be submitted for reimbursement.
Layoff Resources Topics
View the Layoff Support Website for a comprehensive source of layoff support information.
Senate Bill 6157
In calculating average final compensation under this subsection for a member of PERS plan 1, 2, or 3, the Department of Retirement Systems (DRS) shall include any compensation forgone by the member during the 2009-2011 fiscal biennium as a result of reduced work hours, voluntary leave without pay, or temporary furloughs if the reduced compensation is an integral part of the employer's expenditure reduction efforts, as certified by the employer. UW Benefits will provide an update once administrative procedures are developed by the DRS. Until then, please contact DRS directly for more information.