Participant Rights and Responsibilities
Upon Transfer or Termination

Section VIII.
Separation Pay

Support and Service Staff Employees

Plan Summary

All Support and Service Staff employees receive separation pay at their regular rate of pay for certain time off accruals when separating employment from the university. The time off amounts are prorated by FTE for part-time employees.

All Separations

All Support and Service Staff employees who terminate employment receive separation pay for the following, whether or not the employee gives or receives notice of separation:

• Unused holidays that are still available for use within the specific time allowed;
• All accrued compensatory time off; and
• Vacation time. To be eligible to receive the following separation pay for unused vacation, an employee must have six months of university service.

Years of University Service	Maximum Vacation Hours Paid as Separation Pay
0 up to 6 months	No separation pay is received
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

 

Separations with IU Retiree Status or Because of Death

Eligibility. Refer to Section VIII for information about eligibility for IU Retiree status.

In addition to the separation pay described above, Support and Service Staff employees who separate with IU Retiree status or who die receive:

• Income protection time (sick time) accruals. Eligible employees enrolled in PERF receive separation pay for unused income protection accruals in excess of 152 hours.
  • 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.
  • Employees covered under university service for vested rights in PERF and the IU Retirement 12.0% Plan will receive a portion of the benefit if the years of employment under PERF equal 50 percent or more of the total service. The benefit will be a multiple of the percentage of total employment under PERF.
• The death of an employee at any age and with any years of service

Professional Staff Employees

Plan Summary

All Professional Staff employees receive separation pay at their regular rate of pay for certain time off accruals when separating employment from the university. The time off amounts are prorated by FTE for part-time employees.

All Separations: Voluntary or Involuntary Separation

Employees on the PA Time Off Plan

All employees on the PA time off plan receive separation pay for the following, whether or not the employee gives or receives notice of separation:

• Unused holidays that are still available for use within the specific time allowed;
• Accumulated compensatory time off for Overtime Eligible Professional Staff employees only;
• Accumulated and unused Paid Time Off (PTO) balance; and
• Accumulated and unused honorary vacation balance, up to a maximum of 60 days (480 hours) for 100% FTE employees. (Professional Staff employees employed prior to 1985—or promoted from a Support and Service Staff position to a PA position prior to May 2002—may have previously accrued honorary vacation.)

Employees on the PB Time Off Plan

All employees on the PB time off plan receive separation pay for the following, whether or not the employee gives or receives a notice of separation:

• 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;
• Unused holidays that are still available for use within the specific time allowed;
• Accumulated compensatory time off for Overtime Eligible Professional Staff employees only;
• 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.); and
• Honorary service vacation up to a maximum of 480 unused hours.

Separations with IU Retiree Status or Because of Death

Eligibility. Refer to Section VIII for information about eligibility for IU Retiree status.

• In addition to the separation pay described above, Professional Staff employees enrolled in PERF or the IU Retirement 11.25% Plan receive separation pay for accrued sick bank hours in excess of 152 hours.
  • 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.
  • Employees who are vested in PERF and are now in the IU Retirement 11.25% Plan will receive this benefit.
  • With the exceptions below, employees enrolled in the IU Retirement 10%, 12%, or 15% Plans do not receive separation pay for sick bank accruals.
• Employees covered under university service for vested rights in PERF and who are now in the IU Retirement 12% Plan will receive a portion of the benefit if the years of employment under PERF equal 50 percent or more of the total service. The benefit will be a multiple of the percentage of total employment under PERF.
• Employees covered under university service for vested rights in PERF, and who moved from PERF to the IU Retirement 10% Plan between July 1, 1999 through June 30, 2002, will receive a portion of the benefit if the years of employment under PERF equal 50 percent or more of the total service. The benefit will be a multiple of the percentage of total employment under PERF.
  
• The death of an employee at any age and with any years of service entitles the beneficiary to receive this benefit if the employee was enrolled in PERF, the 11.25% Plan, or met the exception in the 10% or 12% Plans noted above.
• Employees on the PB time off plan who separate with IU Retiree Status or die will also receive the Bonus Holiday for the last quarter worked provided that the employee worked one month of the quarter.
• Employees in the IU Retirement 15% Plan will have separation pay for vacation or PTO deducted from the interim benefit payment.

 

    

Page updated: July 2009
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