Common use of SEVERANCE PAY PLAN Clause in Contracts

SEVERANCE PAY PLAN. 16.1 For the purpose of determining eligibility for retirement, employees who are M.E.R.F. members will qualify for retirement with twenty-nine (29) years and one (1) day of service with the district. As of July 1, 2001 all employees that are currently members of the bargaining unit that have accrued ten years or more of continuous service with the employer, shall receive severance pay upon any separation, except for discharge for cause. In the event an employee dies, accumulated and unused sick leave will be paid at the current rate of pay to the beneficiary named by the employee for basic life insurance benefits. Employees with less than ten years of continuous service with the employer shall receive severance pay upon mandatory retirement or retirement at social security eligibility, death, or layoff. Severance pay shall be equal to 100% of the employee's accumulated, but unused, sick leave balance (which balance shall not exceed 900 hours). As of April 1, 2008 employees who were members of the bargaining group as of July 1, 2001 shall have a payment deposited into an account with the Minnesota State Retirement System’s Post-Retirement Health Care Savings Plan that equates to 100% of their unused sick leave (which balance shall not exceed 900 hours) balance. Implementation is subject to IRS rules and regulations. For those employees who became members of the bargaining unit after July 1, 2001 Severance pay shall be calculated at 50% of the employee’s accumulated, but unused sick leave balance (which shall not exceed 900 hours). As of April 1, 2008 employees who were members of the bargaining group after July 1, 2001 shall have a payment deposited into an account with the Minnesota State Retirement System’s Post-Retirement Health Care Savings Plan that equates to 50% of their unused sick leave (which balance shall not exceed 900 hours) balance. Implementation is subject to IRS rules and regulations. All employees hired effective July 1, 2008 and thereafter shall only be eligible for the Career Transition Trust.

SEVERANCE PAY PLAN. 16.1 For the purpose of determining eligibility for retirement, employees who are M.E.R.F. members will qualify for retirement with twenty-nine (29) years and one (1) day of service with the district. As of July 1, 2001 all employees that are currently members of the bargaining unit that have accrued ten years or more of continuous service with the employer, shall receive severance pay upon any separation, except for discharge for cause. In the event an employee dies, accumulated and unused sick leave will be paid at the current rate of pay to the beneficiary named by the employee for basic life insurance benefits. Employees with less than ten years of continuous service with the employer shall receive severance pay upon mandatory retirement or retirement at social security eligibility, death, or layoff. Severance pay shall be equal to 100% of the employee's accumulated, but unused, sick leave balance (which balance shall not exceed 900 hours). As of April 1, 2008 employees who were members of the bargaining group as of July 1, 2001 shall have a payment deposited into an account with the Minnesota State Retirement System’s Post-Retirement Health Care Savings Plan that equates to 100% of their unused sick leave (which balance shall not exceed 900 hours) balance. Implementation is subject to IRS rules and regulations. For those employees who became members of the bargaining unit after July 1, 2001 Severance pay shall be calculated at 50% of the employee’s accumulated, but unused sick leave balance (which shall not exceed 900 hours). As of April 1, 2008 employees who were members of the bargaining group after July 1, 2001 shall have a payment deposited into an account with the Minnesota State Retirement System’s Post-Retirement -Retirement Health Care Savings Plan that equates to 50% of their unused sick leave (which balance shall not exceed 900 hours) balance. Implementation is subject to IRS rules and regulations. All employees hired effective July 1, 2008 and thereafter shall only be eligible for the Career Transition Trust.