Subd. 1. Eligibility.

1. All faculty members who have completed twenty (20) years of continuous service shall receive a sick leave liquidation payment upon separation from state service.
2. All faculty members who are mandatorily retired from state service or are separated by reason of death shall receive a sick leave liquidation payment. In the event of death, such payment shall be made to the beneficiary designated by the faculty member under the Minnesota Teacher's Retirement Association or Individual Retirement Account Plan.
3. All unlimited full-time and unlimited part-time faculty members who are laid off from service in the community colleges, shall receive a sick leave liquidation payment.
4. Faculty members who separate from state service after ten (10) years of continuous state service and whose combined years of service and age equal sixty-eight (68), shall also receive a sick leave liquidation payment.

Subd. 2. Benefits.

The faculty member shall receive a sick leave liquidation payment in an amount equal to forty percent (40%) of the faculty member's accumulated but unused sick leave balance (not to exceed 112 days) plus twelve and one-half percent (12½%) of the faculty member's accumulated but unused sick leave bank times the faculty member's regular daily rate of pay at the time of separation. If necessary, accumulated but unused bank days shall be added to the sick leave balance to attain the one hundred and twelve (112) days maximum.

Subd. 3. Reinstatement.

Should any faculty member who has received a sick leave liquidation payment be subsequently reappointed to state service, eligibility for future a sick leave liquidation payment shall be computed upon the difference between the amount of accumulated but unused sick leave restored to the faculty member's credit at the time the faculty member was reappointed and the amount of accumulated but unused sick leave at the time of the faculty member's subsequent eligibility for a sick leave liquidation payment. However, if the faculty member has bought back the total amount of sick leave previously paid off on severance, eligibility for future a sick leave liquidation payment shall be computed upon the amount of accumulated but unused sick leave to the faculty member's credit at the time of the faculty member's subsequent eligibility for a sick leave liquidation payment.

Subd. 4. Age at Separation.

A faculty member who retires at the end of the academic year will be considered to have retired as of the following July 1 for purposes of a sick leave liquidation payment.

Subd. 1. Sunset Provision.

Faculty members hired after June 30, 1995, shall not be eligible for this early retirement incentive.

Subd. 2. Eligibility.

In addition to the provisions of Section 1., any faculty member who has served at least fifteen (15) years in the MCCFA bargaining unit, and is at least fifty-five (55) years of age shall be eligible for early separation. Individual applications for early retirement incentive will only be granted where it can be shown that the specific application would prevent a layoff, allow the recall of a laid off faculty member and/or would result in a cost savings to the system.

Subd. 3. Compensation.

An eligible faculty member who elects early separation through resignation or early retirement shall receive compensation equal to base salary. An eligible faculty member who elects such early separation shall receive compensation equal to base salary minus twenty percent (20%) of base salary for each year beyond age sixty (60). The faculty member shall receive the compensation in two (2) equal annual payments: the first upon separation and the second in the following year or on other reasonable terms as conveyed by the faculty member and accepted by the administration.

Subd. 4. 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. 5. Early Separation.

Persons choosing early separation shall have eligibility for early retirement payments determined in accordance with appropriate statutes and regulations.

Subd. 1. Eligibility.

Pursuant to M.S. 354.66, unlimited full-time faculty members who are fifty-five (55) years of age, and who have at least ten (10) FTE years of service credit in Minnesota community colleges shall be granted, upon application, a phased retirement subject to the provisions below.

In order for the phased retirement program to be easily understood and administered, the Association and the Employer are in agreement to the following provisions:

Subd. 2. Application Procedure.

Faculty members who are eligible may request in writing to take part in the phased retirement program. Such written request shall be submitted prior to the end of fall semester in the academic year prior to the year the reduction is going to start. The length of the phased retirement period and the faculty member's annual workload shall be mutually agreed to by the faculty member and the college president, subject to the limitations in Subd. 3. Each application and any subsequent request for a change will be considered on a case by case basis. The agreed upon arrangements shall be made in writing between the faculty member and the college president. A copy of the phased retirement agreement shall be forwarded to the chancellor's designee and the Association.

Subd. 3. Terms of Program.

The phased retirement agreement must meet the following terms:

1. A length of time no less than one (1) year and no more than ten (10) years.
2. An annual workload no less than .33 FTE and no more than .67 FTE.

The level of reduction and the length of time of phased retirement may change upon mutual agreement of the faculty member and the college president. At the end of the phased retirement period the faculty member must retire from the Minnesota State Colleges and Universities system, unless circumstances give cause for the faculty member and the college president to end the phased retirement program early and the faculty member returns to full-time employment. Faculty members who are in a phased retirement program shall have their actual work FTE counted for the purpose of meeting the hiring practices requirements contained in Article 18 of this contract.

The calculation of workload shall be in credits for faculty who teach plus a percentage of additional days beyond the student contact time required. An example of the application of this provision would mean that a fifty percent (50%) phased retirement plan would require that the faculty member teach fifteen (15) credits and be responsible for five (5) of the Duty/Faculty Development Days beyond the student contact days regardless of the length of the semester.

Subd. 4. Benefits.

The faculty member shall continue to receive insurance benefits and payment toward Teacher's Retirement Account or IRAP as if working full time. Any faculty member contributions toward insurance premiums will continue to be deducted from the faculty member's paycheck. The faculty member shall be directly responsible for payment of the faculty member's portion of TRA or IRAP. Faculty members who are on phased retirement shall be treated as if they are regular full-time faculty when calculating early retirement benefits and severance pay benefits. Faculty members who are on phased retirement shall receive sick leave and personal leave on a pro rata basis, i.e. if the phased retirement contract is for sixty-seven percent (67%), then the faculty member will be granted 6.7 days of sick leave and 1.34 personal leave days. Faculty members are urged to select the twenty (20) pay option during the year prior to phased retirement and continuing during the phased retirement program. Overload restrictions shall be determined for a faculty member on phased retirement based on the actual pay received during the fiscal year prior to the first year of a phased retirement program. Normal summer session rotation rights shall be maintained. Faculty members shall maintain eligibility for a sabbatical and the benefits shall be the same as for full-time faculty. Any remaining FTE needed to qualify during phased retirement shall accrue on a pro rata basis. The return requirement shall also be satisfied on a pro rata basis. The return requirement must be reachable in the plan in order to be eligible for the sabbatical leave. Faculty members who are considering a sabbatical during phased retirement should include such intention in the program application.

Subd. 5. Limits on Access.

The number of faculty members at each campus or center who will be granted this option shall be limited to seven percent (7%) of the number of unlimited full-time faculty at the college or center or one (1), whichever is greater. If more applications are received than the seven percent (7%) limit, the approvals shall be granted on a seniority basis, with the most senior applicants being granted first. In the event the campus limit is reached, an applicant in excess may be granted the phased retirement program if the president and the Employer agree to the request. The seven percent (7%) limit will be established each year and shall not be cumulative. The actual numbers may change based on the roster changes each year.