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MnSCU-IFO Master Agreement 1999-2001
Section A. Eligibility.
Severance pay shall be granted to faculty members in accordance with the following
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
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.
Faculty members who separate from the Minnesota State Universities after ten
(10) years of service and whose combined years of service and age equal sixty-eight
(68) shall also receive severance pay.
Until June 30, 2001, faculty eligible for severance under Article 16, Section
A., Subd. 3. of the 1997-99 Agreement shall remain eligible for the severance
benefit provided by this Section.
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
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
Subd. 3. Individual Eligibility.
An eligible faculty member who elects early separation through resignation
or early retirement by October 1, 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. In the event a faculty member who is otherwise eligible
for the separation incentive described in this Section, and has provided the
advanced notice of his/her intention to retire as provided in this Section,
dies before his/her separation date, the incentive payment shall be made to
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.
Persons choosing early separation shall have eligibility for early retirement
payments determined in accordance with appropriate statutes and regulations.