Voluntary Separation Program
Announcement of Voluntary Separation Program
Dear Seton Hall Community,
I am writing to provide an update on actions related to our FY27 budget and another step the University is taking to manage expenses and safeguard our long-term financial stability.
As you know from my July 15 announcement, the University is operating under a reduced budget and University leaders have planned and instituted an array of measures to reduce spending.
One of the cost savings we announced was a reduction in headcount. To date, the University has reduced 46 administrative positions through a combination of open-position elimination, retirements and layoffs. In addition to these actions, we are offering certain long-serving union and non-union staff employees an opportunity to voluntarily separate from the University with appropriate financial consideration.
Eligible staff employees and union members will be invited to participate in a one-time Voluntary Separation Program (VSP) based on a combination of their age and years of service at the University. Eligible employees will receive a detailed email from Human Resources with the program information and VSP package outlining their financial package on October 27, 2026.
We anticipate these voluntary separations will yield a substantive reduction in long-term spending
However, since this is a voluntary program, the total savings that will be generated are not yet known. Seton Hall will analyze the overall response and its impact on University finances and operations. Additional cost-saving measures may need to be taken, depending upon the outcomes of this program.
Thank you for your continued good work for Seton Hall. I will continue to keep you updated on the results of this program and next steps in our FY27 budget process.
Sincerely,
Edward J. Bishof, Sr.
Vice President for Finance and CFO
Frequently Asked Questions
1. Why is the University doing this Voluntary Separation Program?
As a consequence of the financial pressures facing Seton Hall University and universities across the country, the University has taken, and continues to take, carefully considered and prudent actions to address these fiscal challenges, as described in the July 15, 2026 announcement from Finance. The Voluntary Separation Program (VSP) is being offered to staff employees (paraprofessionals paid on a bi-weekly basis) and union members in an effort to avoid layoffs among this designated group. The VSP will provide additional needed budget relief for the University while also providing long-serving employees with an opportunity to voluntarily separate or retire with appropriate financial consideration.
2. What are the eligibility criteria for the Voluntary Separation Program?
Staff employees and employees who are members of Local 153 or Local 68 are eligible to elect to participate in the VSP based on the following criteria as of October 23, 2026:
- 15 years of benefits-eligible University service; and
- a combination of age and years of service must equal 85 or above.
3. What about faculty and administrators? Why are those groups not eligible?
Executive Cabinet reviewed multiple VSP scenarios for staff (both union and non-union), faculty and administrators. After a thorough analysis, Executive Cabinet determined that offering a Voluntary Separation Program for staff and union members at this time was the most feasible option, given that eligible faculty have a Phased Retirement Program, which is described here: https://www.shu.edu/policies/phased-retirement-for-tenured-faculty-south-orange.html, and a reduction in administrative headcount has already occurred.
4. How much does the University hope to save through the Voluntary Separation Program?
The Voluntary Separation Program is one of several actions that are concurrently underway as described in the July 15, 2026 email from Finance that will reduce University spending. As this is a voluntary program, the total savings that will be realized is not yet known, but the intent of the VSP is to avoid or reduce layoffs among staff and union members. Seton Hall will have a fuller understanding of the impact of the VSP on University finances after eligible employees elect to participate in the VSP.
Ultimately, taken as a whole, all of these constraints are intended to bring the University’s financial outlay in line with the expense budget and position Seton Hall for continued financial stability and strength in the coming years.
5. Will the University replace employees who are approved to participate in the VSP? Who will do the work if employees leave?
Seton Hall remains committed to ensuring adequate staffing levels so that the University will continue to deliver the high-quality Catholic education it has provided for 170 years. The University is continuing to assess its operational needs and how and whether the work of those eligible employees who have applied to participate in the VSP can be reallocated or reconfigured. At present, all proposed promotions and open job postings are under Executive Cabinet review, as announced in the July 15 message from the Division of Finance. Decisions regarding existing positions can only be made once the full scope of the VSP is determined.
6. What does an employee have to do in order to participate in the VSP?
Eligible employees will receive an email and a letter from Human Resources that describes the Voluntary Separation Program, a summary of the benefits and a Voluntary Separation Program Agreement and General Release, which is required to be signed, dated and returned to HR by the date contained in the correspondence. However, participation in the VSP is not guaranteed. Please see Paragraph No. 7 below.
7. If an employee receives a VSP package, is it automatically accepted?
The operational and business needs of the University are paramount. The University retains the discretion to determine the number of employees who may participate in the VSP and to limit or deny participation based on the University’s operational and business needs, including the need to maintain appropriate staffing, skills, functions, services and continuity of University operations. Accordingly, an employee who satisfies the VSP’s threshold eligibility requirements and signs the VSP agreement will not be deemed accepted for participation unless and until the University approves the employee’s participation.
8. What if an employee changes his or her mind after returning the required Voluntary Separation Program Agreement and General Release?
In the event an employee executes the VSP agreement, the employee will have 7 days to revoke the VSP Agreement after it is signed by the employee.
9. When will employees who are approved for the Voluntary Separation Program finish their time at Seton Hall?
It is anticipated that all employees who are approved to participate in the Voluntary Separation Program will discontinue working and no longer be employed at Seton Hall on or about December 22, 2026.
10. Will the VSP replace the need for layoffs, or might layoffs still occur?
The Voluntary Separation Program was developed in an effort to avoid layoffs among staff and union members. However, as noted above, the full financial effect of the VSP will not be known until eligible employees elect to participate and decisions as to approval are made.
It is anticipated that the Voluntary Separation Program, along with other cost-reduction measures that are currently being implemented, will reduce — but not completely eliminate — the possibility of layoffs. The University will continue to assess its finances and adjust as planning and circumstances dictate.
11. If an employee separates through the Voluntary Separation Program, can that former employee work for Seton Hall in the future?
Employees who participate in the Voluntary Separation Program will not be permitted to have an employment relationship or be engaged as an independent contractor with the University in the future.
For Eligible Employees who are Approved for the Voluntary Separation Program:
12. Will I be paid for my vacation and sick leave upon my separation?
Employees will be paid their accrued but unused vacation as of their separation date, in accordance with the University’s vacation policy. Employees eligible for retirement also may be paid a portion of their accrued but unused sick leave, in accordance with their respective collective bargaining agreements and the Sick Leave Policy.
13. When will the University life insurance coverage end?
University basic life insurance will end on the last day of the month in which you are employed. For example, if your last day of work is December 22, 2026, your University life insurance coverage will end on December 31, 2026. Please review information regarding converting your life insurance to a personal policy. The Standard, Seton Hall’s life insurance company, will also send details by mail to employees about converting their life insurance into a personal policy.
14. What happens to my retirement accounts when I separate?
Your retirement account stays in effect after you separate from the University. You may contact TIAA for additional information and guidance regarding your retirement account. To schedule a meeting with a representative from TIAA, you may use www.tiaa.org/schedulenow; you will need to login to your TIAA account using your username and password. You may also contact TIAA Customer Service at (800) 842-2252.