As authorized under the Voluntary Retirement Incentive Program (VRIP), employees retiring under the program were able to choose either a one-time lump sum payment of $6,500 or a Health Insurance Benefit equal to the employer’s share of the active State employee rates for the coverage and plan in which the employee was enrolled on August 1, 2011.
The United States Department of Health & Human Services’ Division of Cost Allocation (DCA) is currently evaluating the VRIP program for indirect cost allocation eligibility. If approved, agencies with qualifying indirect cost allocation plans will be able to charge some of the program costs to their federal grant awards.
For the Health Insurance Benefit, agencies are to be billed via a SMART interfund on a monthly basis for amounts due to the Division of Health Care Finance, Department of Health and Environment. Until a determination is received from DCA, agencies should not charge federal funds for the costs of the Health Insurance Benefit amounts. Agencies should use SMART account code 559600 (Voluntary Retirement Incentive GHI coverage) to record the expense side of the interfund.
The first interfund billings were entered in SMART in January, 2012. Unfortunately we did not have this Informational Circular distributed prior to the initial billing as we intended. Any interfunds that processed using an expense account code other than 559600, should be corrected to this code. We regret any inconvenience this may have caused.
If you need assistance identifying federal funds that have been charged for expenditures, please contact Janette Martin.
Any questions regarding this agency correspondence should be directed to: