Layoff Severance Program for Civil Service and Union-Represented Staff Employees

The Layoff Severance Program is an elected benefit program provided by the University of Minnesota (University) to civil service and union-represented staff employees who receive a written notice of layoff and who meet all the eligibility requirements as described. Benefits are based on years of continuous service with the University in designated types of appointments.

Provisions and Terms

The University reserves the right to alter the terms of or eliminate this program.

Scope

1. Eligibility Requirements

This policy governs the Layoff Severance Program of civil service and union-represented staff. In order to be eligible, the employee must hold a continuous civil service or union-represented appointment of 75 percent time or greater with an appointment term of nine months or more on the issue date of the layoff notice. In addition, the employee must work through the effective date of the layoff.

2. Exclusions

In addition to not meeting the specific eligibility requirements, employees are ineligible for participation if they are:

• working in a temporary appointment, unless the employee was transferred from a continuing appointment to a temporary one within the same seniority unit and without a break in service;
• working in an hourly appointment;
• opting to participate in another University of Minnesota exit program, voluntary or involuntary, to which the University contributes or has contributed monies; or
• terminated for cause.

Benefits

Benefits are based on continuous years of service with the University. One full year of service is credited for each anniversary from the employee's most recent hire date through the last day of employment. This number is adjusted for unpaid leaves of absence. If the employee worked less than 75 percent time (1,560 hours) in any year, that year will not be credited. This is not considered a break in service.

Under the program, a lump-sum payment is made to the employee equal to one week of pay per full Year of Continuous University Service. Payment covers a maximum of 52 weeks of pay. One week of pay is equal to the employee's regular hourly rate times the number of hours per week (maximum of 40) the employee was regularly scheduled to work as of the last day of employment. This payment is subject to payroll taxes. Severance pay of this type does affect unemployment benefits. The employee is instructed to contact a Minnesota WorkForce Center for more information regarding unemployment compensation.

Medical and/or dental coverage may be continued for up to eighteen months following termination of employment, but not after the last day of the month in which the employee, spouse, or dependents becomes covered under another group medical plan that has no limitations or exclusions with respect to any pre-existing conditions of the employee or, for family coverage, the employee's dependents. If the employee is a federal employee with federal health benefits, this continued medical and dental coverage is not available through the University. If the employee becomes eligible for Medicare before or during this subsidized period, Medicare then becomes primary with the UPlan secondary for this individual. If a spouse or registered same-sex domestic partner is age 65 or older, application must be made for Medicare Part B. Upon termination of employee's employment, Medicare then becomes primary with the UPlan secondary for this individual.

The University will contribute toward the cost of the employee's medical and/or dental coverage for the following periods:

Full years of continuous service	Period of University Contributions
less than 3 years	University will NOT contribute
3 through 4 years	University will contribute for up to 6 months
5 through 9 years	University will contribute for up to 12 months
10 years and over	University will contribute for up to 18 months

The University's contribution for this coverage will be the same as if the employee had remained employed. If the above subsidy is for less than 18 months, coverage may be continued at the employee's own expense for the balance of up to 18 months; Employee Benefits will bill the employee directly for the unsubsidized months.

Dependent coverage may be added at the expense of the employee while covered by this program either during open enrollment time or if there is a change in the employee's family status. If medical and/or other coverages are canceled or dropped for any reason during the time that the University is subsidizing the coverages, including, but not limited to, cases where employees do not make payments towards their required contributions for coverages, then the University will not be responsible for any further compensation to or on behalf of the employee in connection with these coverages.

NOTE: The continuation of medical and dental coverage available under COBRA (Consolidated Omnibus Budget Reconciliation Act) runs concurrently with the benefits extended under this program. See Benefit Information Supplement, Section II for further information on COBRA.

Program Participation

In order to obtain the Layoff Severance Program, the laid off civil service or union-represented staff employee must apply for this program and leave the University employment by the last day of their employment.

In exchange for participating in this program, the employee waives layoff rights*, reinstatement rights if rehired, and all other claims against the University. The employee's area unemployment office should be contacted for information regarding eligibility for unemployment compensation benefits. As part of this program, the employee also agrees to not reapply for or be rehired for University employment for a period equal to the number of weeks of severance paid, beginning on the first day of non-employment.

*Layoff rights include bumping rights, priority for rehire, Regents Scholarship eligibility, and the University's six-month health care extended benefits which is normally available to employees with three or more years of continuous service.

The University chooses to recognize years of service to the University by eligible civil service and union-represented staff employees who receive a written notice of layoff and who elect the program set forth in this policy.

• Electing the Layoff Severance Program

There are no forms for this policy.

See Appendices for packet of supporting Forms/Instructions.

Subject	Contact	Phone	Fax/Email
Employee Benefits – For questions on how the program works or to discuss personal situations	Employee Benefits Service Center	612-624-9090 or 800-756-2363, option 2
General Information or Procedural Assistance	Primary: Responsible administrator/supervisor Secondary: Local campus, college, or administrative unit HR administrator Other (as needed): Office of Human Resources specialist or consultant	Office of Human Resources Specialist and Consultant List	Office of Human Resources Specialist and Consultant List
Unemployment Insurance	Minnesota Workforce Center		Minnesota Workforce Center System
Document Processing	HRMS Key Contact Office of Human Resources Call Center	HRMS Key Contact List 612-625-2016	HRMS Key Contact List

Year of Service

A 12-month period in which the employee worked at least 1,560 hours in an appointment term of nine months or more and in an appointment of 75 percent time or greater. One full year of service is credited for each anniversary from the employee's most recent hire date through the last day of employment.

Continuous Service

Service commencing on the employee's most recent date of hire with the University of Minnesota in an appointment of 75 percent or greater, with an appointment term of nine months or more, and ending on the employee's last day of employment. The employee must be in a continuous appointment (or temporary one provided the employee transferred to a temporary appointment within their seniority unit from a continuing appointment without a break in service). This period is non-continuous if it is broken by a voluntary termination of employment - no matter how brief. Periods of leave of absence, disability, part-time service, or involuntary layoff (if less than two years) would bridge periods of continuous service. Such permitted periods in which eligible service was not performed, however, do not count toward the number of years of service credited under the plan.

To obtain a year of continuous service, the employee must work at least 1,560 hours (i.e., an employee on a 12-month appointment could take a 3-month leave of absence and the year would still count, while an employee on a 9-month appointment taking the same 3-month leave of absence would lose credit for that year). If the employee has at least 1,560 hours in the final year, they must be employed on the anniversary date to count as a year of service.

A student appointment in 2xxx or any of the 95xx classifications will not be credited and will be considered a break in service. Employment prior to any appointments in the 2xxx or 95xx classifications, is not credited. Service credit would begin with the resumption of non-student, non-professionals-in-training employment.

If an employee changes appointments between one employee category to another (e.g., P&A to Civil Service), the service will be considered continuous as long as there is no break longer than two pay periods.

Base Pay

Appointment salary which includes augmentation (if continuous). A temporary augmentation, shift differential, lump sum payments, bonuses, etc., are not considered base pay.

Division/Department

• Upon delivery of a written layoff notice, direct employee to Employee Benefits web site for civil service staff, AFSCME Units 4, 6, and 7, and IBEW Local 292 for members Layoff Severance Program materials.
• Manage the layoff process for the employee.
• Enter appropriate data into the Human Resource Management System (HRMS).

Employee

• Provide timely notice to the division/department of the choice to accept the terms of Layoff Severance Program for Civil Service and Union-Represented Staff Employees.
• Follow appropriate procedures.
• Contact area unemployment office for more information as desired.

• Agreement (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Benefits Election (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Benefits Information Supplement (Layoff Severance Program for Civil Service and Union-Represented Staff Employees)
• Department Checklist (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Employee Checklist (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Program Description (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Release (Layoff Severance Program for Civil Service and Union-Represented Staff Employees) (PDF)
• Staff Layoff Severance Program for Civil Service and Union-Represented Staff Members Program Description (PDF)

• Layoff Severance Program for Civil Service and Union-Represented Staff Employees FAQ

• Civil Service Rules
• Unit 3 Service, Maintenance & Labor Bargaining Unit Agreement
• Unit 4 Health Care Non-Professionals Bargaining Unit Agreement
• Unit 6 Clerical & Office Bargaining Unit Agreement
• Unit 7 Technical Bargaining Unit Agreement

Amended:

May 2008 - Policy converted to the new University-wide format for administrative policies. Title was changed to Layoff Severance Program for Civil Service and Union-Represented Staff Employees, formerly Civil Service and Represented Bargaining Unit Staff Layoff Severance Program.

Amended:

June 2005 - (1) Rule of 75 elimination effective July 1, 2005 for AFSCME Unit 6 members;
(2) The Civil Service Staff Layoff Severance Program and Bargaining Unit Staff Layoff Severance Program were combined into the Civil Service and Represented Bargaining Unit Staff Layoff Program.

Amended:

February 2003

Amended:

April 2003 - (1) Minor edits to clarify language.
(2) Rule of 75 elimination effective April 30, 2003 for civil service staff; effective May 8, 2003 for IBEW Local 292 members; and Effective June 3, 2003 for AFSCME Unit 7 members whereby if the sum of the employee's full years of continuous University service and age on the last day of employment was 75 or greater, then the University medical and/or dental coverage was continued until the last day of the month in which the employee became eligible for Medicare of other group coverage, whichever came first;
(3) eligibility criteria added requiring (a) an appointment term of nine months or greater on the issue date of the layoff notice and (b) employment through the effective date of layoff;
(4) exclusion added making employees on hourly appointments ineligible for the program;
(5) requirement added whereby the employee, in exchange for participating in program, agrees to not reapply for or be rehired for University employment for a period equal to the number of weeks of severance pay received; and

Adopted:

September 2002 - The Civil Service and Bargaining Unit Staff Layoff Program was divided into two separate documents, Civil Service Staff Layoff Severance Program and Bargaining Unit Staff Layoff Severance Program.

Amended:

March 1995, May 1994, and March 1994

Adopted:

August 1993 - U of MN Layoff/Non-Renewal Program for Civil Service and Professional and Administrative Employees.

Amended:

March 1993, August 1992, and November 1991

Adopted:

August 1991 - Voluntary Retirement/Health Benefits Program; Termination/Severance Program

Effective:

May 2009