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Preface

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A. Introduction

B. Voluntary or involuntary separation

C. IU Retiree status or death

See also:

IU Retirement plan

PERF plan

 

Separation Pay for Professional Staff
PA/SS 7.4

Revised September 3, 2008

Employees covered by this policy
This policy applies to Professional Staff.

A. Introduction

Appointed Professional Staff are eligible for separation pay at their regular rate of pay for certain accrued benefits when separating from university employment. The conditions for determining separation pay are listed below.

B. Voluntary or involuntary separation

1. All employees on the PA time off plan receive the accrued benefits described below, whether or not they give or receive a notice of separation.

1. A holiday that falls on the next workday following the last scheduled workday and unused holidays that are still eligible for use within the specific time allowed.

2. Accumulated and unused Paid Time Off (PTO) balance.

3. Accumulated compensatory time off for PAO and PAU Staff.

4. Accumulated and unused honorary vacation balance, up to a maximum of 60 days (480 hours) for 100% FTE staff. (Professional staff employed prior to 1985—or promoted from a support and service position to a PA position prior to May 2002—may have previously accrued honorary vacation.)

5. Except as provided below for separations with IU Retiree status or at time of death, employees do not receive separation pay for sick bank accruals.

2. All employees on the PB time off plan receive the accrued benefits described below, whether or not they give or receive a notice of separation.

1. Unused bonus holidays. An employee who separates from employment on the last working day of March, June, or September (or the last workday before December 15 if that is not a workday) will receive the quarter's bonus holiday.

2. A holiday that falls on the next workday following the last scheduled workday and unused holidays that are still available for use within the specific time allowed.

3. Unused vacation. The maximum separation pay of accumulated vacation (excluding honorary vacation) is 200 hours, plus the number of vacation hours that the employee earns in a full year. (This is called the employee's annual allowance.)

4. Accumulated compensatory time off for PAO and PAU Staff.

5. Honorary service vacation. Up to a maximum of 480 unused hours.

6. Except as provided below for separations with IU Retiree status or at time of death, employees do not receive separation pay for sick bank accruals.

C. IU Retiree status or death

1. Professional staff on the PA time off plan

1. Refer to the Web page, Retiree Status and Benefits, for information about qualifying for IU Retiree status.

2. In addition to the items listed in the above section, “Voluntary or involuntary separation,” some Professional Staff on the PA time off plan receive separation pay for accrued sick bank hours. To be eligible, the employee must be enrolled in PERF or the IU Retirement 11.25% Plan and have more than 152.0 sick bank hours. Eligible staff receive pay at the rates listed below.

1. 25% of pay for 152.0 through 312.0 hours

2. 50% of pay for hours more than 312 hours.

3. Staff enrolled in the IU Retirement 10%, 12%, or 15% Plans do not receive separation pay for sick bank accruals with the exception in paragraph 3.a. below.

2. Professional staff on the PB time off plan

1. Refer to the Web page, Retiree Status and Benefits, for information about qualifying for IU Retiree status.

2. Unused bonus holidays plus the Bonus Holiday for the last quarter worked provided that the employee worked one month of the quarter.

3. Holidays. See Section B. 2. above.

4. Unused vacation. See Section B. 2. above.

5. Unused compensatory time. Section B. 2. above.

6. Honorary service vacation. See Section B. 2. above.

7. Income protection hours. Employees enrolled in PERF or IU Retirement 11.25% Plan with more than 152.0 income protection hours receive pay at the rates listed below.

1. 25% of pay for 152.0 through 312.0 hours

2. 50% of pay for hours more than 312.0 hours.

8. PB staff in the IU Retirement 10%, 12%, or 15% Plans do not receive separation pay for income protection (sick hours) with the exception noted below.

3. Professional Staff with vested rights in both PERF and the IU Retirement 12% Plan

1. It is possible for employees to be covered under university service for vested rights in both PERF and the IU Retirement 12% Plan. In such cases, separation payment for accrued sick leave hours is applicable if the years of employment under PERF equal 50% or more of the total service. However, the benefit is a multiple of the percentage of total employment under PERF.

2. This exception does not apply to staff enrolled in the IU Retirement 10% or 15% Plans.

3. Persons who are vested in both PERF and the IU Retirement 11.25% Plan will, for purposes of this policy, be treated as though they had continued PERF enrollment.

4. Professional Staff in the IU Retirement 15% Plan

1. Professional Staff in the IU Retirement 15% Plan will have vacation or PTO deducted from the interim benefit payment. Contact the campus human resources office for details.

5. Part-time Staff

1. The separation pay amounts in this policy are prorated by FTE for part-time Staff.