Article 13 -- Severance Pay
Section 1. Eligibility. All employees who have accrued twenty (20) years or more continuous State service shall receive severance pay upon any separation except for discharge for cause from State service. Employees with less than twenty (20) years continuous State service shall receive severance pay upon: retirement at or after age 65; death; or layoff, except for seasonal layoff. Employees who separate from State service for reasons other than discharge after ten (10) years of continuous State service and who are immediately entitled at the time of separation to receive an annuity under a State retirement program shall, notwithstanding an election to defer payment of the annuity, also receive severance pay.
Severance pay shall be equal to forty percent (40%) of the employee's first nine hundred (900) hours accumulated but unused sick leave and twelve and one-half percent (12½%) of the employee’s accumulated but unused sick leave in excess of nine hundred (900) hours times the employee’s regular rate of pay at the time of separation.
Employees who have been laid off and received severance pay as a result of the layoff, and are reappointed to state service, are eligible for additional severance upon subsequent separation if they meet the eligibility requirements in Section 1. For the purposes of eligibility, continuous service shall include time served since the last date of hire, including the period of layoff.
Employees who separate from state service and receive severance pay as a result of meeting the continuous state service requirement described in Section 1, and are reappointed to state service are considered to have met the continuous service requirement for future severance payment.
Should any employee who has received severance pay be subsequently reappointed to State Service, eligibility for future severance pay shall be computed upon the difference between the amount of accumulated but unused sick leave restored to the employee's credit at the time the employee was reappointed and the amount of accumulated but unused sick leave at the time of the employee's subsequent eligibility for severance pay.
Section 2. Health Care Savings Plan. Employees who, for reasons other than layoff or death, are eligible to receive severance pay will have one hundred percent (100%) of severance pay, as defined in Section 1 above, and one hundred percent (100%) of vacation pay converted to an MSRS health care savings plan account. Employees who do not meet the requirements for the health care savings plan account, or whose combined severance and vacation pay totals less than five hundred dollars ($500) will continue to receive their severance and vacation payments in cash. See article 10 section 6 for vacation transfer to severance guidelines.