Processing Severance and Early Separation Incentive Payments
#RET0002

Purpose: The purpose of this procedure is to provide campuses with instructions on how to process Severance and Early Separation Incentive Payments for employees under the SCUPPS/SEMA4 personnel/payroll system.

Affected Campuses: All MnSCU Campuses and MnSCU System Office

Authoritative References: Severance/Early Separation Incentive language in applicable employee bargaining agreements/plans

Definitions:

* Severance. Severance payments are made at termination of service and are subject to eligibility criteria as outlined in the employee's bargaining contract or pay plan. Severance pay for unclassified employees is calculated at the base daily rate of pay (for classified employees, the regular hourly rate is used) and is applied to employee sick leave balances in accordance with language in the appropriate bargaining agreement/plan. Lump-sum severance payments are processed during the payroll period immediately following the employee's last day of service.

* Early Separation Incentive. Early separation incentives can take the form of State-paid insurance until age sixty-five (65) and/or cash payments based on years of service or other criteria as outlined in collective bargaining contracts, pay plans, or legislative language. This procedure only pertains to cash payment incentives.

Required Form(s): Special Payment Request form #PE-00209-05 (2/91) and MnSCU Early Separation Incentive Payment Request form (PDF).

Procedure:

* Severance payments should be processed as outlined by DOER for classified employees. Payments for unclassified employees should be processed on the Special Payment Request form at the campus level. MnSCU does not need to counter-sign the form. Campuses will be held accountable for correct severance payments via audit procedures.

* Early Separation Incentive payments:

1. Campuses should process requests on the MnSCU Incentive Payment Request form and forward the form to the MnSCU Personnel Office for review and approval. Copies of other relevant documentation pertaining to the Early Separation Incentive request, such as departmental designation for the State Universities or copies of applicable collective bargaining language for the Technical Colleges, should be forwarded along with the Payment Request.

2. The MnSCU Personnel Office will notify the campus via return fax if the Request is approved.

3. The campus Personnel Office will process the approved payment request to payroll and file the MnSCU approval with the payroll documentation.