13.1 Goal. University System of New Hampshire institutions shall have the option to provide incentive programs to faculty and staff to encourage voluntary separation including retirement. The goal of these programs shall be to provide sufficient predictability to enable and encourage succession and transition planning as well as to provide flexibility to encourage voluntary separations when programmatic and organizational needs make such separation desirable.
These plans are at the discretion of the component institutions and are not considered to be benefit or entitlement programs.
13.2 Authority
13.2.1 The Board of Trustees has delegated to the Chancellor the right to establish standards and conditions for component institutions to offer incentive separation programs. These offerings are in addition to and not in place of the retirement benefit described in USY V.A.8. (See also approvals in USY V.C. 13.7 and 13.8)
13.2.2 The Chancellor shall delegate to the President of each institution the authority to determine:
13.2.2.1 The offering of an incentive program.
13.2.2.2 The timing of such offering consistent with policy as described below and other federal and/or state requirements.
13.2.2.3 The group of faculty or staff who will be offered the program consistent with the policy and conditions below.
13.2.2.4 Eligibility and plan conditions including maximum funding available or number of participants to be approved in any given time frame.
13.2.2.5 The features of the separation incentive from among those described by USY V.C.13.5.1.
13.2.3 The Chancellor's Office shall provide consultation to the component institutions regarding financial, human resources, legal requirements for any conditions or stipulations added to campus plans beyond those listed in the policy.
13.3 Eligibility
13.3.1 Separation incentives may be offered only to faculty and staff in status positions.
13.3.1.1 Faculty/staff members must have at least five years of USNH service in a benefits eligible position. Component institutions may add age and years of service requirements subject to the overall legal review described in USY V.C.13.8.
13.3.1.2 Plan offerings will limit eligibility to those who apply within a pre-announced time frame.
13.3.1.3 Faculty/staff members must be in active service and cannot concurrently receive a separation incentive along with continuing income from a USNH disability program, sick leave, or worker's compensation, or have a previously agreed to termination or retirement date. Those on sabbatical or professional development leave during the application period may apply and request a departure date to be effective at some point after the expiration of their leave period. Additionally, those on worker's compensation may be eligible to select a separation incentive in lieu of worker's compensation where legally appropriate.
13.3.1.4 Plan offerings may limit eligibility based on criteria noted in USY V.C.13.4.5.
13.3.1.5 Plan offerings may stipulate a limited number of participants or a limited total dollar pool.
13.4 Conditions
13.4.1 Any plan offering will be in the form of a written plan document and will be announced to all those who are eligible. This announcement may be generalized (e.g. Campus Journal notification) and/or personalized (e.g. e-mail or written notice).
13.4.2 All offerings must have at least a six-week application period.
13.4.3 All offerings require a completed application form and a signed, written agreement if approved.
13.4.4 Effective dates of the institution's plan offering must be included in the announcement and can have separation dates as much as two years into the future.
13.4.5 Plan offering announcements will stipulate selection criteria to determine eligible faculty or staff members. Subject to the overall approval described in USY V.C.13.8, the eligibility requirement may include:
13.4.5.1 Years of service in a benefits-eligible position
13.4.5.2 Age (minimum, but not maximum)
13.4.5.3 Occupational type
13.4.5.4 Specific department or program
13.4.5.5 Individuals targeted as part of a documented reorganization
13.5 Incentive/compensation
13.5.1 Component institutions may design a plan offering using any of the following components subject to the maximums described in USY V.C.13.6. Plan offerings may use a combination of factors or a sole factor as total offering:
13.5.1.1 Percentage of annual salary rate as of the first date of the plan's enrollment (or percentage of annual salary per years of service)
13.5.1.2 Bonus amounts keyed to departure date or calculated based on years of service
13.5.1.3 During the last year of employment, additional employer contributions (within the legal regulations) to the USNH retirement program
13.5.1.4 Non-status employment for a defined guaranteed period not to exceed two years following departure. Non-status appointments may be extended through the normal campus process for non-status appointments, and those who take an Incentive Separation are also eligible for other non-status appointments in the future.
13.5.1.5 Medical, dental insurance and/or tuition benefits for a defined period not to exceed the overall cap described in USY V.C.13.6
13.5.1.6 The option to reduce appointment time and receive retirement income as described in USY V.A.7.2.7
13.5.1.7 For those hired prior to 7/1/94 who have ARC and will be age 62 or over at date of departure, years of service may be bridged to reach eligibility for the ARC guarantee with approval of USNH Human Resources
13.5.1.8 Campus-based privileges may be offered (e.g., parking, office space, library access, etc.)
13.5.2 Plan offering may be paid in a lump sum payment or spread over 26 pay periods per year for a maximum of five years.
13.6 Financial maximums. Plan offerings noted in USY V.C.13.5.1 are subject to a maximum cumulative value. That value for each USNH institution will be determined every year by the Chancellor no later than the October before the beginning of a fiscal year. The maximum cumulative value amount could vary from year to year, depending on available funds and institutional needs.
13.6.1 Payouts may be offered with fewer years and greater annual totals or may be offered with lower total maximums.
13.6.2 Bonus amounts may be geared to any total amount at or below the equivalent described in USY V.C.13.6.1 even if paid in one or two lump payments.
13.6.3 Additional employer contributions may be made to a 403-(b) plan; however, there are contribution limitations established by IRS regulations.
13.6.4 Medical, dental and/or tuition benefits with the normal employee contribution may be offered in any incremental amount (i.e. one year, two years, etc.) up to a total of seven years; however, with the value of those benefits offered in excess of four years counting against the yearly maximum equivalent as noted in USY V.C.13.6.1.
13.6.4.1 The medical benefit described in USY V.C.13.6.4 is exclusive of the regular medical benefit available for retirees aged 62 to 65 as described in USY V.A.7.7 and USY V.C.9.2.
13.6.4.2 Where applicable, medical/dental benefits will run concurrently with COBRA provisions.
13.7 Financial approvals. Plan offerings shall have a funding plan which will include a requirement that funds be allocated from previously approved personnel or benefit budget guidelines and which will require "repayment" over no more than a 24 month period from the date the first expense is incurred. Plans will normally be funded from campus personnel lines or savings; however, allocations from the System wide pooled benefit account may be authorized.
13.7.1 The Vice Chancellor for Finance and Budget or designee will authorize that the funding plan meets the standard noted in 13.7. The Vice Chancellor or designee is also authorized to approve exceptions to funding policy as long as the plan is prudent and will determine if such exceptions will require approval by the Financial Affairs Committee.
13.8 Legal/Human Resource approval. The USNH General Counsel or designee and Director of Human Resources or designee will approve plan offerings before they are announced and review compliance with policy, taxation, discrimination and related legal requirements.