This looks like a general retirement benefit to me. Where did you get the idea that this is to trim staffing?
Those 2 ideas are not mutually exclusive. It was an incentive benefit to trim staffing. UVA wants to trim staffing to help control future admin costs.
Many organizations provide incentives to get higher paid staff to retire so they can be replaced with lower paid staff. I met one college president (not UVa) who said half-jokingly that he wanted to move the faculty parking far away to encourage some of the elderly professors to retire.