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MnSCU-IFO Master Agreement 1995-1997
ARTICLE 16 - Severance Pay
Section A. Eligibility. Severance pay shall be granted to faculty members in accordance with the following provisions.
Subd. 1. All faculty members who have accrued twenty (20) years of service in the Minnesota State Universities shall receive severance pay upon separation from the Minnesota State Universities.
Subd. 2. Probationary and tenured faculty members who have fewer than twenty (20) years of service in the Minnesota State Universities shall receive severance pay upon mandatory retirement, death, permanent layoff, or receipt of separation incentive. Faculty members on non-tenure track or fixed-term appointment, other than those funded by monies from an outside jurisdiction or agency which may terminate such funding in a manner beyond the control of the Employer, who have at least ten (10) years of service in the Minnesota State Universities shall receive severance pay upon mandatory retirement, death, or discontinuance of employment. Fixed-term faculty members in positions funded by monies from an outside jurisdiction or agency which may terminate such funding in a manner beyond the control of the Employer may, after ten (10) years of service in the State Universities, receive severance pay upon mandatory retirement, death, or discontinuance of employment to the extent the funding source permits. In the event of death, such benefits shall be made to the beneficiary designated by the faculty member under a State retirement program.
Subd. 3. Faculty members who retire from the Minnesota State Universities after ten (10) years of service and who are eligible for and receive an annuity under a State retirement program shall also receive severance pay.
Section B. Computation. Severance pay shall be computed at forty percent (40%) of the faculty member's regularly accumulated but unused sick leave balance multiplied by the faculty member's regular daily rate of pay at the time of separation. Effective fiscal year 1996, severance pay for faculty with twenty-five (25) or more years of service shall be computed at forty-five percent (45%), with an increase of one percent (1%) per year for each additional year of service beyond twenty-five (25) years to a maximum percentage of fifty percent (50%). The base for computing severance pay shall not exceed one hundred twenty-five (125) days. Should the faculty member have less than one hundred twenty-five (125) days of regular sick leave accumulated, the difference may be transferred from lapsed sick leave for purposes of calculation of severance pay. These monies shall be paid in a lump sum upon separation.
Section C. Reappointment. In the event a faculty member who has received severance pay is subsequently reappointed to the Minnesota State Universities, future severance pay for that individual shall be computed upon the difference between the amount of accumulated sick leave restored to the faculty member's credit at the time of reemployment and the amount of unused sick leave at the time of the faculty member's subsequent eligibility.
Section D. Separation Incentive.
Subd. 1. Eligibility. In addition to the above a faculty member who has served at least fifteen (15) years in the Minnesota State Universities and is at least fifty-five (55) years of age shall be eligible for early separation.
Subd. 2. Sunset. Faculty members hired after June 30, 1996 shall not be eligible for this early separation incentive.
Subd. 3. Individual Eligibility. An eligible faculty member who elects early separation through resignation or early retirement by October 15, to be effective the beginning of the subsequent academic year, or a date mutually agreed upon by the faculty member and the Administration, shall receive compensation equal to his/her base salary minus ten percent (10%) of his/her base salary for each year beyond age fifty-five (55). The faculty member shall receive the compensation in two (2) equal annual payments, the first at the beginning of the ensuing fiscal year and the second in the following fiscal year. If the separation payment is less than ten thousand dollars ($10,000), it will be paid to the faculty member in a lump sum. In no circumstance shall a faculty member eligible for an early separation payment receive such payment in any one fiscal year which would result in compensation in excess of one hundred percent (100%) of total salary, exclusive of overload and summer sessions; or
Subd. 4. Institutional Designation. After meeting and conferring with the Association, the President may designate departments or programs in which faculty members choosing the incentive shall receive compensation equal to their full base salary. The President's designation will be based on reasons that are in the best interest of the university. Payments will be made in a manner consistent with Subdivision 3.
Subd. 5. Maintenance of Benefits. The separated faculty member shall have the right to continue, at the Employer's expense, health insurance benefits for one (1) year after separation.
Subd. 6. Persons choosing early separation shall have eligibility for early retirement payments determined in accordance with appropriate statutes and regulations.