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- Policy 2.40 - Staff Severance Program
Ohio State University Human Resources policy regarding the staff severance program - Organization & Human Resource Consulting
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Staff Severance Program: Frequently Asked Questions
updated 9/2004
- When is the actual termination date for the employee taking severance?
- When is the employee eligible to apply for unemployment?
- When will vacation be paid out?
- What will happen to the sick leave balance?
- Will vacation and sick leave continue to accrue during the severance period?
- What happens to health benefits during the severance period?
- If an employee finds other employment, does the severance pay and benefits coverage end?
- If an employee retires does the severance pay and benefits coverage end?
- Will the employee be required to sign an agreement with the university before receiving severance benefits?
- If the employee finds other employment and does not report it to the university, what happens?
- Does the employee give up the right to be employed by the university for any period of time?
- How will departments decide the length of time the employee will need to work as part of the severance period?
- When does the severance period begin?
- What does break in service mean?
- What happens to tuition benefits during the severance period?
- Who should an employee call if there are questions about the severance schedule?
- How will an employee receive severance pay?
- If an employee is paid through grants and contracts, are they eligible for the severance program?
- If employees are funded through county funds, are they eligible for severance?
- If a department changes a grant-funded position to general funds, does the employee occupying that position become eligible for the severance program?
- How will an employee's retirement and state service credit be impacted during the staff severance program?
- Can a Classified Civil Service employee who selects the severance program still "bump" into another position?
- What is the employee's responsibility with this policy?
- What happens if the employee and manager disagree with the length of working notice and severance pay periods?
- During the working notice period, is the employee able to attend interviews and conduct a job search?
- Can an employee stop their optional deductions during the severance period?
- Is the time the employee works during the working notice period counted toward the employee's continuous service for purposes of calculating her/his total severance period?
- If a position is involuntarily reduced from full-time to part-time, is the employee eligible for severance?
- Who pays the severance for a CCS employee when a displacement occurs?
1. When is the actual termination date for the employee taking severance?
The effective date of termination is the date following the end of the entire severance period.
2. When is the employee eligible to apply for unemployment?
The employee is eligible for unemployment at the end of the severance period.
3. When will vacation be paid out?
Vacation pay out will occur at the end of the severance period and upon termination from the university.
4. What will happen to the sick leave balance?
There is no pay out of unused sick time; however, if the employee should return to work for a state entity within ten years, the forfeited hours would be reinstated. In order to be reinstated for sick time, documentation of the balance is required.
5. Will vacation and sick leave continue to accrue during the severance period?
Yes.
6. What happens to health benefits during the severance period?
Employee health benefits continue through the end of the pay period in which the severance period ends. When coverage ends, an eligible employee may apply for continuation of benefits (COBRA).
7. If an employee finds other employment, does the severance pay and benefits coverage end?
Yes, all severance pay and benefits will stop at the time an employee begins other employment, whether the employment is within the university or external to the university. The only exception to this is if an employee accepts a position where compensation is less than two-thirds of the previous position. In this case, the severance pay will continue until exhausted.
8. If an employee retires does the severance pay and benefits coverage end?
Yes, all severance pay and benefits will stop on the last day of the month prior to when the employee’s retirement benefit from STRS or OPERS is paid. For example, if an employee receives a check from OPERS on October 1, for the month of October, severance pay and benefits will terminate on September 30.
9. Will the employee be required to sign an agreement with the university before receiving severance benefits?
Yes, the employee will be required to sign an agreement, which would require notification to the college/unit or the Office of Human Resources, Consulting Services upon finding other employment. If this agreement is not signed, the employee is not eligible for the severance program.
10. If the employee finds other employment and does not report it to the university, what happens?
The employee will be asked to sign an agreement acknowledging that he/she will inform the university of other internal or external employment. If the university discovers that the employee is working and has not notified the university, severance pay and benefits will stop. The university reserves the right to seek collection for severance pay paid to an employee during the time period in which he/she was working in another capacity.
11. Does the employee give up the right to be employed by the university for any period of time?
No, the affected employee is encouraged to apply for and accept positions within the university.
12. How will departments decide the length of time the employee will need to work as part of the severance period?
The actual time worked and paid will be based on the business needs of the unit and is at the manager's discretion. At a minimum, the employee will receive a two-week minimum working notice period and cannot work more than two-thirds of the severance period unless agreed to by the staff member.
13. When does the severance period begin?
The date severance begins is determined by the unit. However, the employee must be notified in writing on or before the date that the working notice period begins. This follows the approval of the reduction request by the Office of Human Resources, Consulting Services.
14. What does break in service mean?
A break in service occurs when an employee has had any length of separation from service from the university for any reason.
15. What happens to tuition benefits during the severance period?
Tuition benefits will continue for the employee and eligible dependents through the end of the quarter in which the employee's termination is effective. For example, an employee whose termination is effective the fourth week of a quarter will receive tuition benefits through the end of that quarter.
16. Who should an employee call if there are questions about the severance schedule?
An employee should contact their college/unit Human Resource Professional or the Office of Human Resources, Consulting Services.
17. How will an employee receive severance pay?
Severance pay continues to be paid bi-weekly or monthly (based upon the appointment at the time of reduction), and will reflect all applicable deductions including taxes and benefits. Direct deposit will continue for those individuals currently using direct deposit. If the employee does not participate in direct deposit, checks will be mailed to the employee's mailing address.
18. If an employee is paid through grants and contracts, are they eligible for the severance program?
An employee fully funded on grants or contracts is not eligible for the severance program. For staff whose positions are on split funding, at least 50% of the position must be funded by eligible funding sources to qualify for the severance program. The portion of the position funded by federal or state grant and contract is not considered in the calculation of severance.
19. If employees are funded through county funds, are they eligible for severance?
Yes, employees funded in this way are eligible for the severance program.
20. If a department changes a grant-funded position to general funds, does the employee occupying that position become eligible for the severance program?
A college/unit has the flexibility to change a grant-funded position to general funds on a temporary basis. This flexibility is allowed in an effort to bridge an employee until external funding is renewed. If a position is changed to general funds and the position is subsequently abolished, the employee is not eligible for severance if the funding change was effective for a period of less than six months. However, an employee who has been changed to general funds for a period equal to or greater than six months is eligible for severance.
21. How will an employee's retirement and state service credit be impacted during the staff severance program?
Employee and university contributions will continue during the working notice and severance pay periods. Therefore, an employee continues to earn service credit until her/his termination date subject to retirement plan regulations.
22. Can a Classified Civil Service employee who selects the severance program still "bump" into another position?
No, a classified staff member who elects to participate in the Staff Severance Program at the time of the abolishment also elects to forgo their rights to displacement or recall.
23. What is the employee's responsibility with this policy?
The employee must sign an agreement for the Staff Severance Program and, if Classified Civil Service, the staff member must notify the supervisor and/or the Office of Human Resources of their decision to elect the program within one week of receiving notification.
24. What happens if the employee and manager disagree with the length of working notice and severance pay periods?
The policy states that the working notice period must be a minimum of two weeks and will not exceed two-thirds of the total weeks of the severance period. While there is flexibility within these parameters, the unit has the discretion to divide the total weeks in a way that best meets their business needs. If an employee has questions or concerns about the length of the working notice period, the employee should contact their college/unit human resource professional or the Office of Human Resources, Consulting Services.
25. During the working notice period, is the employee able to attend interviews and conduct a job search?
The employee is encouraged to begin the job search process as soon as possible. Managers should be as flexible as possible in allowing staff to interview, work on resumes, access job postings, and network during the working notice period.
26. Can an employee stop their optional deductions during the severance period?
Yes, an employee may stop optional deductions such as Campus Campaign or Community Charitable Drive contributions, Credit Union, etc.
27. Is the time the employee works during the working notice period counted toward the employee's continuous service for purposes of calculating her/his total severance period?
No, only the continuous service the employee has prior to the beginning of the severance period will be used to calculate the severance period. Therefore, if an employee has 14 years and 10 months of service and her/his working notice period is 2 months, her/his severance period will be based on 14 years of service, not 15 years.
28. If a position is involuntarily reduced from full-time to part-time, is the employee eligible for severance?
If the employee’s compensation is reduced to less than two-thirds of the original base pay, the employee will be eligible for severance pay on the amount of compensation that is being eliminated. For example, a 100% FTE employee whose appointment is reduced to a 50% FTE appointment would be eligible to receive 50% of their salary for the severance period.
29. Who pays the severance for a CCS employee when a displacement occurs?
In the event a displacement occurs, the unit who initiated the original abolishment, will be responsible for the cost of the severance program.
