Faculty Realignment Incentive Program (FRIP) Frequently Asked Questions

  1. I received a FRIP letter, but I am not interested in the program. What action should I take?
    FRIP participation is voluntary. If you are not interested in being considered for the program, no further action is required of you.

 

  1. How is the one year of salary payout taxed/withheld?
    The tax you ultimately pay on your personal income tax filing related to the payout will be dependent upon your individual facts and circumstances. ECU will withhold Federal Income Tax from the payout at the Supplemental Tax rate of 22%. Applicable FICA (Social Security and Medicare), state, and (if necessary) local income tax withholding rates will be applied to the payout as well. These additional rates will vary based on your earnings and location. If you have any questions related to the withholding rates applied to the payout, please reach out to the ECU Payroll Office at: payroll@ecu.edu

 

  1. I would like to explore this opportunity and find out how it compares to traditional retirement particularly regarding continuing health benefits. Who should I speak with to get more information?
    Please contact the POSO Benefits Office* with questions specific to retiree benefits.

 

  1. What is the deadline to apply for FRIP?
    October 2, 2024

 

  1. Is ECU only going to offer it this year or potentially offer it next year at this time?
    This program is dependent upon available funding. At this time, there is not any identified future funding beyond fiscal year 2024-2025

 

  1. How do I know my form has been successfully sent out and received? Is there any way I can check or ask someone?
    Please contact the POSO Benefits Office*.

 

  1. Can I make the effective date the 2024-25 academic year or even a later academic year?
    Per the Program Summary: “It is estimated that faculty approved for FRIP participation will separate from ECU by June 1, 2025.”

 

  1. If accepted into the program, can I change the “Requested Early Retirement Date” before I make my final decision?
    Official retirement date will be confirmed upon selection into the program.

 

  1. Can I apply for FRIP and Phased Retirement if I’m eligible for both?
    No, you will have to choose which program you would like to apply to.

 

  1. When will I know if I am approved for FRIP?
    FRIP approvals/denials will be communicated to faculty members prior to December 1, 2024.

 

  1. When does my 45-day window begin as my right to revoke FRIP agreement?
    Since you are receiving a copy of the Settlement Agreement and Release, in accordance with the Age Discrimination in Employment Act (“ADEA”) as amended by the Older Workers Benefit Protection Act of 1990 (“OWBPA”), with the September 4, 2024, letter, the 45-day timeline begins on September 4.

 

  1. Is there any way to extend receipt of the severance payment into the next year due to tax implications?
    No, the severance payment cannot be extended. The terms of the FRIP Statement of Interest form indicate the following: “I understand that I will receive payment under the FRIP Agreement seven (7) days after my final day of employment but no more than 14 days after my final day of employment.”

 

  1. If I go forward with the FRIP, how would deductions from my salary such as medical insurance premiums (which I would like to continue with the UNC system after retirement) be handled?
    Please contact the POSO Benefits Office* regarding questions related to medical insurance.

 

  1. If I decide to apply for Emeritus status and do not declare my retirement until June 1, 2025, will I still be able to do so?
    Yes, you should still be able to apply for Emeritus status through your department via the process outlined in the ECU Faculty Manual.

 

* POSO Benefits: Contact Pam Brann 252-328-9887 or Amber Pope 252-737-5820 or email at retirement@ecu.edu.