Common use of SEVERANCE/RETIREMENT PAY Clause in Contracts

SEVERANCE/RETIREMENT PAY. For employees hired prior to July 1, 1999 A. The school district shall provide one pro rata day of severance/retirement pay for each full year of employment as a full-time EPSS employee in the Eden Prairie school district. Calculations for accumulating severance/retirement pay under this paragraph shall not be retroactive and shall start as of July 1, 1989. An EPSS employee is eligible for severance/retirement pay when he/she discontinues employment with the school district for any reason other than dismissal for cause. In case of death, the benefits from this paragraph shall be paid to the employee's beneficiary as designated on the Designation of Beneficiary card for life insurance. The rate of pay shall be calculated at the rate of the last day of employment. The divisor for the daily rate of pay will be 240 days (or pro- rata thereof for reduced contracts). B. Full-time employees who have completed at least eighteen (18) years of continuous service with the school district and who are at least fifty-five (55) years of age shall be eligible for severance pay pursuant to the provisions of this paragraph upon submission of a written resignation accepted by the school district. Eligible employees shall receive as severance pay an amount representing thirty (30) days' pay or the amount in paragraph A, whichever is more, but not both. In case of death, an employee who otherwise qualifies for benefits under the provisions of this paragraph shall have such benefits paid to the employee's beneficiary as designated on the employee's Designation of Beneficiary card for life insurance. An employee qualifying for severance pay provided for in Section VII, A. of this article will receive that severance pay as follows. The first 50% of the severance shall be contributed to the employee’s account under the VEBA Trust for Eden Prairie Schools (the health reimbursement arrangement (HRA) sponsored by the school district that is funded with a VEBA authorized under Section 501(c)(9) of the Internal Revenue Code). The remaining 50% shall be contributed to the employee’s account under a 403(b) plan (i.e., TSA account) sponsored by the school district that is funded solely with accumulated sick leave, vacation, and/or severance. C. EPSS employees shall also receive as severance pay 50% of unused accumulated sick leave, not to exceed the maximum limitations set forth in Article IV, Section A. Total severance pay to any EPSS employees shall not exceed one year's salary or any other limitations set forth in state statutes. An employee qualifying for severance pay provided for in Section VII, A. of this article will receive that severance pay as follows. The first 50% of the severance shall be contributed to the employee’s account under the VEBA Trust for Eden Prairie Schools (the health reimbursement arrangement (HRA) sponsored by the school district that is funded with a VEBA authorized under Section 501(c)(9) of the Internal Revenue Code). The remaining 50% shall be contributed to the employee’s account under a 403(b) plan (i.e., TSA account) sponsored by the school district that is funded solely with accumulated sick leave, vacation, and/or severance. D. In applying these provisions, an employee's daily rate of pay shall be the basic daily rate as of the last day of employment, as provided for in the salary schedule for the employment policy, and shall not include any additional compensation for overtime or other extra compensation. E. At the option of the employee, severance pay shall be paid by the school district within 30 days of the effective date of retirement; however, this severance pay shall not be granted to any employee who is discharged for just cause by the school district. F. If an employee dies before all or a portion of the severance pay has been disbursed, that balance due shall be paid to a named beneficiary, or lacking same, to the deceased's estate.

SEVERANCE/RETIREMENT PAY. For employees hired prior to July 1, 1999 A. The school district shall provide one pro rata day of severance/retirement pay for each full year of employment as a full-time EPSS employee in the Eden Prairie school district. Calculations for accumulating severance/retirement pay under this paragraph shall not be retroactive and shall start as of July 1, 1989. An EPSS employee is eligible for severance/retirement pay when he/she discontinues employment with the school district for any reason other than dismissal for cause. In case of death, the benefits from this paragraph shall be paid to the employee's beneficiary as designated on the Designation of Beneficiary card for life insurance. The rate of pay shall be calculated at the rate of the last day of employment. The divisor for the daily rate of pay will be 240 days (or pro- pro-rata thereof for reduced contracts). B. Full-time employees who have completed at least eighteen (18) years of continuous service with the school district and who are at least fifty-five (55) years of age shall be eligible for severance pay pursuant to the provisions of this paragraph upon submission of a written resignation accepted by the school district. Eligible employees shall receive as severance pay an amount representing thirty (30) days' pay or the amount in paragraph A, whichever is more, but not both. In case of death, an employee who otherwise qualifies for benefits under the provisions of this paragraph shall have such benefits paid to the employee's beneficiary as designated on the employee's Designation of Beneficiary card for life insurance. An employee qualifying for severance pay provided for in Section VII, A. of this article will receive that severance pay as follows. The first 50% of the severance shall be contributed to the employee’s account under the VEBA Trust for Eden Prairie Schools (the health reimbursement arrangement (HRA) sponsored by the school district that is funded with a VEBA authorized under Section 501(c)(9) of the Internal Revenue Code). The remaining 50% shall be contributed to the employee’s account under a 403(b) plan (i.e., TSA account) sponsored by the school district that is funded solely with accumulated sick leave, vacation, and/or severance.. Severance pay may not exceed an amount equivalent to six months of wages. (Per MN Statute 465.722) C. EPSS employees shall also receive as severance pay 50% of unused accumulated sick leave, not to exceed the maximum limitations set forth in Article IV, Section A. Total severance pay to any EPSS employees shall not exceed one year's salary or any other limitations set forth in state statutes. An employee qualifying for severance pay provided for in Section VII, A. of this article will receive that severance pay as follows. The first 50% of the severance shall be contributed to the employee’s account under the VEBA Trust for Eden Prairie Schools (the health reimbursement arrangement (HRA) sponsored by the school district that is funded with a VEBA authorized under Section 501(c)(9) of the Internal Revenue Code). The remaining 50% shall be contributed to the employee’s account under a 403(b) plan (i.e., TSA account) sponsored by the school district that is funded solely with accumulated sick leave, vacation, and/or severance. D. In applying these provisions, an employee's daily rate of pay shall be the basic daily rate as of the last day of employment, as provided for in the salary schedule for the employment policy, and shall not include any additional compensation for overtime or other extra compensation. E. At the option of the employee, severance pay shall be paid by the school district within 30 days of the effective date of retirement; however, this severance pay shall not be granted to any employee who is discharged for just cause by the school district. F. If an employee dies before all or a portion of the severance pay has been disbursed, that balance due shall be paid to a named beneficiary, or lacking same, to the deceased's estate.