Proposed Revision to 712.2 - Voluntary Termination Incentive
POLICY AUTOMATICALLY REPEALED 9-1-94 (SEE Sec. XIII)
REMOVE FROM MANUAL
Board policy:
The Board of Regents adopts the following voluntary
termination incentive for the 1994-1995 biennium.
I. Eligibility: To be eligible for a voluntary termination
incentive an employee must not be excluded by Section II and must:
A. Have been employed full time by the
Board of Regents on February 1, 1993; and
B. 1. Be
an active member of the Teachers Retirement System who is eligible for normal
service retirement under 19-4-801 MCA or 19-4-802 MCA;
or
2. Be a participant in the Optional
Retirement Program established by 19-21-101ff MCA who is at least
50 years old on the date the participant terminates employment; and
C. Have a contract with the Board of
Regents for full time employment subsequent to July 1, 1993 for a term
equivalent to a complete academic year or fiscal year; and
D. Indicate in a writing delivered to the
employer at least 45 days before the date of termination (which 45 days may be waived
in whole or in part by the school if the school would benefit thereby), but no
later than the end of business on December 1, 1993, the employee's irrevocable
decision to leave employment no earlier than July 2, 1993, and no later than
1. June 30, 1994; or
2. For those holding academic year
contracts, the end of the school's 1993-94 academic year, unless the
school offers the person a summer term contract, in which case employment must
end at the end of summer session; and
E. Not be terminated for cause, either before
or after giving the notice referred to in paragraph D above.
II. Exclusions: Notwithstanding the above eligibility
provisions, the voluntary termination incentive is not available to: (1) Any employee who prior to July 1, 1993,
is given notice that his or her contract of employment covering the period
subsequent to July 1, 1993, will be the final contract of employment; or (2)
Any employee who prior to July 1, 1993 gives notice that he or she will not
honor in full the contract of employment to which the employee has a right for
AY or FY 1993-94; or (3) Unclassified employees for whom there generally
are not written procedures in contract or policy for notice of non-renewal,
e.g. visiting professors on limited term contracts, or loaned executives on
specific term appointments; or (4) Any employee for whom the receipt of the
incentive is deemed by the school to be inconsistent with the general purpose
of this policy as expressed in Section VII.
Employees on
leave of absence who have an absolute right to return to employment are
eligible if they meet all other conditions.
III. Amount
of the Incentive: An eligible
employee may receive a voluntary termination incentive in the following amount,
which amount shall be calculated on the basis of the final year's salary:
A. For members of the Teachers' Retirement
System (TRS), an amount, when combined with employer contributions due the
Teachers' Retirement System under 19-4-101(5)(d) as a result of the
incentive, if any, equal to 14.503% of final year's salary for each 5 full
years of creditable service within the Teachers' Retirement System, not to
exceed 43.509% of final year's salary.
B. For participants in the Optional Retirement
Program (ORP), an amount equal to 12% of final year's salary for each 5 full
years of service with the Montana University System, not to exceed 36% of final
year's salary.
C. Definition of "final year's
salary": For purposes of this
policy final year's salary means the base compensation on an employee's final
AY or FY contract as reported to or approved by the Board of Regents and
evidenced by the Regents' minutes; exclusive of any additional compensation
such as stipends, overload pay, extra compensation, or any other type of
special or severance payment or cashout of previously earned benefits, whether
reported to the Regents or not.
D. The incentive shall not be pro-rated
for periods of service less than 5 years.
IV. Tax Status
of the Incentive: The incentive
shall generally be considered as current taxable income by the employer. However, employees may wish to consult
personal financial planners for assistance in exploring the most effective
method of minimizing taxes on current income in light of each individual's tax
situation. The units may cooperate with
the employee in this matter, consistent with the unit's obligations under
applicable tax law, but proper tax treatment of current income is ultimately
the employee's responsibility.
V. Re-Employment: A person who receives the incentive and returns
to employment with a unit under the jurisdiction of the Board of Regents shall
refund the incentive unless such subsequent employment is consistent with the
Regents post-retirement employment policy or 19-4-804 MCA.
VI. Deferral
of Termination: A unit or center
may request an eligible employee to defer termination beyond the employee's
requested date of termination if:
A. The employee's termination would give rise
to a hardship that seriously inhibits the school's ability to deliver an
academic program or perform some other function related to the school's
mission; or
B. The employee's termination would create a
significant financial hardship for the school which compromises the school's
ability to perform functions related to the school's mission.
In no event
may a school and an eligible employee agree to defer termination beyond
September 1, 1996.
VII. General
Guide to Application of this Policy: This policy is intended to create a benefit dedicated to persons who
would not otherwise terminate employment with the Board of Regents (or
participating community colleges) between July 2, l993 and June 30, 1994. The incentive is not intended for those who
by word or action have clearly indicated prior to the adoption of this policy
that they will terminate employment during that period regardless of this
incentive. In such cases the incentive,
if paid, would be a windfall to the terminating employee without a commensurate
benefit to the school.
VIII. Appeals: In the event of a dispute as to the meaning
or applicability of this policy the appeal provisions of Regents Policy 203.5.2
shall be used to obtain a final determination.
IX. Community
Colleges: Community colleges under
the supervision of the Board of Regents are authorized to grant voluntary
termination incentives in accord with this policy upon an affirmative vote of
the local board of trustees of the community college district.
X. Reporting: By November 1, 1994, each campus, vocational-technical
center and participating community college shall forward to the Commissioner of
Higher Education a report containing the following:
A. A list of all positions for which a
voluntary termination incentive was paid, including the date of termination,
the final salary of the terminating employee, and the amount of the incentive.
B. A list of all positions vacated with an
incentive which have been filled, including the date of refilling and the
salary of the replacement. If the
position was filled by someone other than a single full time employee that
should be indicated and explained.
C. A list of all deferred incentives which are
pending, including the date to which the incentive is deferred, the approximate
amount of the anticipated incentive and the reason for the deferral.
D. The impact of not refilling certain
positions vacated by the incentive. For
example, were the duties reassigned, was the function dropped, etc.?
E. The net cost or savings resulting from the
incentives.
XI. Authority: These procedures are adopted pursuant to the
general instruction to define a voluntary termination incentive in Chapter 567,
Laws of 1993 [HB 517], and, in the event there is any inconsistency between
these policies and Chapter 567, pursuant to the authority granted to the Board
in Article X, Section 9 of the Constitution.
XII. PERS
Employees: Employees of the Board
of Regents who are active members of the Public Employees Retirement System may
also be eligible for a voluntary termination incentive. Such eligibility will be determined by
statute or by rules adopted by the Department of Administration.
XIII. Effective
Date and Expiration: This policy is
effective on July 2, 1993. This policy
is repealed September 1, 1994.
History:
Item 79-002-R0593, Voluntary Termination Incentive Policy, June 7, 1993.