Subd. 1.

All ASF Members who have accrued twenty (20) years of service in MnSCU shall receive severance pay upon separation.

Subd. 2.

Permanent and probationary ASF Members who have fewer than twenty (20) years of service and externally funded employees who have fifteen (15) years of service or more in MnSCU shall receive severance pay upon death, mandatory retirement, permanent layoff, or receipt of separation incentive.

ASF Members on externally funded appointments with more than five (5) years of continuous service shall receive severance pay upon death or mandatory retirement.

Subd. 3.

ASF Members who separate from the Minnesota State Universities after ten (10) years of service, and whose combined years of service and age equals sixty-eight (68) shall also receive severance pay.

Until June 30, 2001, ASF Members eligible for severance under Article 15, Section A. Subd. 3. of the 1997-99 Agreement shall remain eligible for the severance benefit provided by the Section.

Subd. 1.

Severance pay shall be computed upon forty-five percent (45%) of the ASF Member's regular accumulated but unused sick leave balance based on the ASF Member's then current rate of pay.

The percentage multiplier shall be increased by one percent (1%) for each year of service over twenty five (25) years to a maximum of fifty percent (50%).

Subd. 2.

The base for computing severance pay shall not exceed one thousand (1,000) hours, nor shall said base include "lapsed" sick leave hours as provided by this Agreement.

However, should the ASF Member have less than one thousand (1,000) hours of regular sick leave accumulated, the difference may be transferred from lapsed sick leave for purposes of calculation of severance pay.

Subd. 3.

Calculation of an ASF Member's hourly rate for purposes of computing severance pay shall be based upon a base of two thousand eighty-eight (2,088) working hours per year.

Appointment periods of less than one (1) year in duration shall be prorated on this base.

Subd. 1. Eligibility.

Any permanent ASF Member who has served at least fifteen (15) years in the Minnesota State Universities and is at least fifty-five (55) years of age but less than 65 shall be eligible to apply for separation incentive.

1. During FY 2000 and FY 2001 ASF Members who give notice of retirement shall be informed by the Employer within fifteen (15) days of such notice whether the retiring employee will receive the separation incentive benefit pursuant to this Section. If the Employer notifies the employee that he/she will not receive the benefit, the employee shall have ten (10) days to notify the Employer that he/she is rescinding the retirement notice.
2. Effective July 1, 1996, an ASF Member may apply for a separation incentive. The President will determine whether or not a separation incentive is appropriate for that employee's position. This decision is not subject to the grievance process.

Subd. 2. Compensation.

An ASF Member qualifying for separation through resignation or early retirement 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 ASF Member shall receive compensation in payments over three (3) fiscal years. The first payment will be made upon separation with the other two (2) on reasonable terms as conveyed by the ASF Member and accepted by the Employer. No employee shall receive more than one hundred percent (100%) of total compensation in a single fiscal year.

Subd. 3. Maintenance of Benefits.

The separated ASF Member under the provisions of this subdivision shall have the right to continue, at the Employer's expense, health insurance benefits for one (1) year after separation.

Subd. 4. Early Separation.

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