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Preface

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A. Introduction

B. Voluntary or involuntary separation

C. IU Retiree status or death

 

Separation Pay
AFSCME 2.19

Revised July 18, 2008

Employees covered by this policy
This policy applies to Support and Service Staff at IU.

A. Introduction

1. Appointed Support and Service employees receive separation pay at their regular rate of pay for certain time off accruals, if eligible, when separating employment from the university.

2. Amounts are prorated by FTE for part-time staff.

3. The table below is a summary only. See section B. or C. in this policy to determine whether an employee is eligible and to what extent.

Separation Pay At-a-Glance

Type of Pay	Voluntary or involuntary separation	Retirement or death
Holidays	Yes	Yes
Accrued compensatory time off	Yes	Yes
Vacation time	Yes (after 6 months)	Yes
Sick time	No	Yes

B. Voluntary or involuntary separation

1. Non-retiring employees who terminate employment receive separation pay for the unused time-off items listed below whether or not the employee gives or receives notice of separation.

2. Holidays. An employee receives pay for the following:

1. A university-observed holiday falling on the next workday following the last scheduled workday

2. Unused holidays that are still available for use within the specific time allowed

3. Accrued compensatory time off

4. Vacation time. To be eligible to receive separation pay for unused vacation, an employee must have six months of service.

1. The following table shows the maximum amount for which an employee receives separation pay for unused vacation time.

Years of university service credit	Maximum Separation Pay (hours)
6 Months through 6 years	312
start of 7 through 13 years	352
start of 14 years	392
start of 15 years	432
start of 16 years	472
start of 17 years	512
start of 18 years	552
start of 19 years	592
start of 20 years	632
start of 21 years	672
start of 22 years	712
start of 23 years	752
start of 24 years	792
start of 25 years to end of 29 years	832
start of 30 years and beyond	872

C. IU Retiree status or death

1. Refer to the Web page at www.indiana.edu/~uhrs/benefits/perf.html for information about qualifying for IU Retiree status.

2. Employees who separate with IU Retiree status regardless of the reason for the separation or who die receive pay for the time off accruals described below.

1. Holidays. Same as in Section B above.

2. Accrued compensatory time off.

3. Vacation time. Same as in Section B above.

4. Income protection time (sick time) accruals. Employees enrolled in PERF who separate with IU Retiree status or die are entitled to receive separation pay for unused income protection accruals in excess of 152 hours. The death of an employee at any age and with any years of service entitles the beneficiary to receive this benefit.

1. The benefit is 25 percent of pay for hours in excess of 152.0 through 312.0 and 50 percent of pay for hours in excess of 312.0.

2. It is possible for employees to be covered under university service for both vested rights in PERF and the IU Retirement 12.0 Plan. In such cases the benefit is applicable if the years of employment under PERF equal 50 percent or more of the total service, but the benefit will be a multiple of the percentage of total employment under PERF.