Go to table of contents

1.08 SEVERANCE

Revised & Approved by LSER Jul 21, 2000

Subd. 1 Severance Pay

Administrators shall receive severance pay upon separation by reason of:

1. retirement at or after age 65;
2. death;
3. separation immediately following:
   1. ten (10) years of continuous state employment as a manager/administrator, or
   2. five (5) years of continuous employment as an administrator in the Minnesota State Colleges and Universities, or
   3. 20 years of continuous state employment;
4. retirement immediately following ten (10) years of continuous state employment with immediate entitlement at the time of retirement to receive an annuity under a state retirement program.

Notwithstanding any other provision, severance pay shall not be made to an administrator under this Plan who is terminated for gross misconduct.

Severance pay shall be a sum equal to 40% of the administrator's accumulated but unused sick leave balance at the time of separation, not to exceed 112 days, plus 12.5% of the administrator's accumulated and unused sick leave in excess of 112 days, times the administrator's regular daily rate of pay at the time of separation. However, until June 30, 2001, administrators employed by the Community College System on June 30, 1995, shall continue to be eligible for severance pay equal to 40% of the accumulated but unused sick leave balance at the time of separation, not to exceed 112 days, plus 25% of the administrator's accumulated and unused sick leave in excess of 112 days, times the administrator's regular daily rate of pay at the time of separation. Should an administrator have less than 112 days of regular sick leave accumulated, the difference may be transferred from lapsed sick leave for purposes of severance pay.

Administrators employed by the state universities on June 30, 1995, who elected to retain severance pay at 50% of his/her accumulated but unused sick leave balance, not to exceed 125 days times the regular daily rate of pay at the time of separation, shall continue to be eligible for this severance pay provision. Should an administrator electing this option have less than 125 days of regular sick leave accumulated, the difference may be transferred from lapsed sick leave for purposes of severance pay.

In the event an administrator who has received severance pay is subsequently reappointed within the Minnesota State Colleges and Universities, future severance pay for that individual shall be computed upon the unused sick leave balance accumulated since the time of reappointment.

In addition to other severance pay benefits available under this section, a contractual appointment may include severance pay up to six (6) months salary upon completion of the full term of a contractual appointment which is not renewed.

Subd. 2 Health Insurance Upon Separation

A MnSCU administrator who has served at least 25 years in MnSCU or its predecessor systems, who is at least 55 years of age, who provides a statement from a medical provider that meets the standards for long term disability as provided in the Managerial Plan adopted under Minnesota Statute '43A.18, and who separates from MnSCU employment no later than January 31, 2000, may be eligible for an employer contribution to health, but not dental or life, insurance subject to the following conditions:

1. The administrator is eligible for employee and family coverage at the employer contribution levels which the administrator was entitled to and receiving immediately before separation, subject to any changes future personnel plans may make to this coverage, and/or the employer and administrator payments for positions equivalent to that from which the administrator separated.
2. Eligibility ceases when the administrator reaches age 65 or when s/he is eligible for employer-paid health insurance from a new employer. Coverages must be coordinated with relevant health insurance benefits provided through the federally sponsored Medicare program.
3. An administrator is not eligible to receive this benefit if s/he is eligible for and receives an early retirement incentive provided through one of the state's and/or MnSCU's collective bargaining agreements.
4. An administrator who accepts this benefit and then becomes eligible for employer-paid health insurance with a subsequent employer must so notify MnSCU within 30 days of becoming eligible for the subsequent coverage. Failure to so notify MnSCU obligates the administrator to reimburse MnSCU for any insurance premiums paid by MnSCU since the administrator became eligible for the subsequent employment health insurance coverage.
5. An administrator who receives this benefit may not be re-employed in MnSCU or any of its institutions or any state agency. An administrator receiving this benefit may not be engaged as a consultant with MnSCU or any of its institutions or any state agency.

Subd. 3 Enhanced Separation Payment

As recommended by the president and certified by the Chancellor, administrators whose positions are permanently eliminated as a direct result of a consolidation shall be eligible to receive an enhanced separation payment equal to four percent (4%) of their annual base salary for each full year of employment up to a maximum of 20% of their annual base salary. Only positions eliminated and administrators actually separating from employment in the Minnesota State Colleges and Universities, during the twelve (12) months immediately preceding and the six (6) months immediately following a consolidation, may be considered in determining eligibility for this enhanced separation payment. Administrators eligible for and electing to take or who have taken a legislative or other early separation incentive are not eligible for this enhanced separation payment. Administrators receiving this enhanced separation payment shall not be re-employed in the Minnesota State Colleges and Universities.

Subd. 4 Re-employment of Early Retirees

Administrators who have received an early separation incentive from the Minnesota State Colleges and Universities or one of its predecessor systems/institutions may be re-employed by the Minnesota State Colleges and Universities only in short-term, emergency situations at minimal rates of pay, and with prior written approval of the Chancellor.