KENTUCKY STATE UNIVERSITY. Voluntary Separation Incentive Program Guidelines
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1 I. Purpose KENTUCKY STATE UNIVERSITY Voluntary Separation Incentive Program Guidelines The purpose of the Voluntary Separation Incentive Payments (VSIP) Program is to allow for voluntary reductions in force for Kentucky State University (KSU) employees. The VSIP facilitates an employee s early separation and provides an employee with access to state financial assistance for the pursuit of career opportunities. It also creates opportunities for KSU s restructuring and assists KSU in meeting its fiscal responsibilities. Use of this program has the same objective as other downsizing initiatives. It aids KSU in minimizing the impact of downsizing by allowing employees to volunteer for separation in lieu of being separated by Reduction In Force (RIF) procedures. This program sets forth the framework under which employees can volunteer for separation to save themselves or other employees from RIF. This is a limited-time offering from KSU that allows employees to submit voluntary applications for consideration. However, KSU leaves open the right to continue the program beyond the original schedule, and/or initiate similar programs in the future. KSU anticipates approving as many applications as possible. Participation in the program, however, is voluntary for both KSU and the employee. NOTE: KSU will manage applications for participation on a first-submitted and firstapproved sequence until available funds are exhausted. II. Definitions Reduction in Force (RIF): An involuntary process by which KSU will reduce its work force by laying off employees in response to imminent funding challenges pursuant to HB 200. Voluntary Separation Incentive Payments Program (VSIP): A voluntary process KSU will use to reduce its force by seeking volunteers who are willing to separate from KSU prior to the initiation of a RIF. III. Applicability KSU will consider certain categories of full-time employees (not including students) for participation in this program. As noted in Section I, participation in the program is voluntary for both KSU and the employee. KSU will manage applications for participation on a first-submitted and first-approved sequence until available funds are exhausted. IV. Procedures This process is necessary due to a lack of work duties and/or funds. The first step in this program is to achieve the necessary employee reductions through voluntary methods. KSU s Voluntary Separation Incentive Payments Program is designed to benefit both KSU and its employees. Employees who are separated through a VSIP separation will not be
2 automatically disqualified when applying for unemployment compensation, which is usually the case when an employee voluntarily leaves employment. V. Eligibility To be eligible for the VSIP, an employee must have made an application for a VSIP separation prior to leaving employment at KSU. The VSIP is intended to be a tool for KSU to meet both the imminent funding challenges and the long-term fulfillment of KSU s mission. It is also an attempt by KSU to recognize the invaluable contributions of its employees while also adhering to its current financial constraints. All employees meeting minimum eligibility requirements are invited to apply, but the decision to apply for participation in the program by any eligible employee is strictly voluntary on the part of the employee. VI. Requirements and Limitations Employees that meet the following requirements set forth in Paragraph A of this section are eligible to apply for the VSIP except as limited by Paragraph B of this section. A. Requirements: 1. The individual must be a full-time employee at KSU. 2. The individual must have been continually employed by KSU since June 7, The individual must meet these eligibility criteria as of June 7, The individual must acknowledge that the individual received the VSIP Program Guidelines, the Application for Participation, and the Waiver and Release on June 8, B. Limitations: The following individuals are NOT eligible for participation, even if they meet the criteria in Section A above: 1. Students; 2. Faculty Designation: Artist in Residence, Adjunct, and Visiting Professors; 3. Non-Faculty Designation: Part-time employees and Temporary Employees; 4. Employees who currently hold a position that is 51% or more funded by a grant; 5. Employees who have given written notice of their intent to retire or resign prior to June 7, 2018; 6. Employees who are rehired retirees; 7. Employees who have previously entered into an agreement with a predetermined employment end date; 8. Employees who have accepted other employment in a tenured or tenure track position at another institution of higher education or any other employment; 9. Employees who have resigned prior to the program implementation and whose resignations have been accepted;
3 10. Any employee who has received notice of termination, notice of non- renewal, or cancellation of employment contract. VII. Application Procedure and Review A. The Division of Human Resources will send an on June 8, 2018 to all employees regarding the VSIP. The message will be sent to the employee s KSU e- mail account. The Division of Human Resources will attach to that the VSIP Program Guidelines, the VSIP Application, and the Waiver and Release. For employees who are on FMLA leave and without access to a KSU account, the Division of Human Resources will make reasonable efforts to reach those KSU employees by using the employee s telephone number on record. B. All employees will be responsible for reviewing VSIP criteria. If there are questions regarding eligibility, the employee must contact the Division of Human Resources by at VSIP2018info@kysu.edu. Please note: the Division of Human Resources is the only official source of information/interpretation for this program. C. Employees must submit completed VSIP applications to the Division of Human Resources. Applications are encouraged as early as possible with the final deadline for consideration being no later than 4:30 p.m. EST on June 22, Applications can be submitted in one of two ways: 1. Hand Delivered to Division of Human Resources, 400 E. Main St, Julian Carroll Academic Services Building, Room 429, Frankfort, Ky ; or 2. Sent via to: VSIP2018@kysu.edu. D. It is the applicant s responsibility to ensure that the Division of Human Resources is in receipt of the application by the application deadline. KSU encourages applicants to contact the Division of Human Resources to confirm receipt of the application. E. The Division of Human Resources will assure accuracy and completeness, and will verify eligibility for each application. F. The Division of Human Resources will evaluate the applications to confirm an applicant s eligibility. The Vice President for the Office of Finance and Administration will then will determine whether funding is available before submitting the application to the President for conditional approval. G. Pursuant to Older Workers Benefit Protection Act, Section 201 (OWBPA)(an amendment to the Age Discrimination in Employment Act, 29 U.S.C. 621, et seq.), conditionally approved applicants will have
4 VIII. until July 23, 2018 to review and to execute the Waiver and Release. During this time, approved applicants are encouraged to seek advice from an attorney and financial and/or tax counselors, and to contact the Division of Human Resources with any questions about the plan. H. Upon execution of the Waiver and Release, applicants will then have seven (7) days from the date of signing to revoke the Waiver and Release pursuant to OWBPA, Section 201(f)(1)(G). I. Final approval of an applicant is conditioned upon the execution of an unmodified Waiver and Release. J. Only the President can provide final approval of the VSIP application. Approval process The President can approve a VSIP separation under the conditions described below: A voluntary separation can occur only during the Voluntary Separation Program (VSIP) period. Volunteering for VSIP separation under this policy is strictly a voluntary action on the part of any eligible employee. Participation in the program, however, is voluntary for both KSU and the employee. KSU will manage applications for participation on a first-submitted and firstapproved sequence until available funds are exhausted. Employees who separate from KSU under this Program waive all tenure or other rights to continued employment as part of participation in the VSIP. IX. Incentives Eligible and approved full-time employees with a faculty designation will receive the following: Tenured faculty will be eligible for a lump sum that equals 270 days pay. Non-tenured faculty will be eligible for a lump sum that equals 135 days pay. Eligible and approved full-time employees without a faculty designation will receive the following: Employees without faculty designation who have been employed by KSU for less than ten (10) years will be eligible for a lump sum that equals thirty (30) days pay. Employees without faculty designation who have been employed by KSU for ten (10) years or more will be eligible for a lump sum that equals sixty (60) days pay.
5 Approved applicants will receive the payment less all required federal and state taxes and deductions as required by law. The approved applicant will have a choice of: A. One lump sum payment to be received no later than August 1, 2018; or B. Two equal payments to be received no later than August 1, 2018 and January 15, No change in base salary within the ninety (90) days prior to June 7, 2018 will be taken into account in determining the employee s base salary for use in the incentive calculations. KSU health insurance coverage for approved applicants who are under a 9-month contract will terminate on June 30, KSU health insurance coverage for approved applicants who are under a 12-month contract will terminate on August 1, Any pay and benefits received as a result of employment with KSU will terminate or cease in accordance with the terms of those established laws, policies, plans and procedures. X. Tax and Financial Consequences of Participation in the VSIP In all cases, each individual participating employee is responsible for consulting with his/her personal tax advisor as to the potential tax consequences of the employee s participation in the VSIP. No employee of KSU is authorized by KSU to provide tax and/or financial advice to employees. Information sessions and material are for general information only and should not replace the advice of a competent financial and/or tax advisor. XI. Conditions Not every individual application will be approved. The President has sole discretion over the determination of eligibility and approval or denial of any individual application to the VSIP in order to achieve specific institutional objectives. Nothing in this program shall be construed to create a right or entitlement to any employee. Approved participants in the VSIP shall be restricted from being rehired by the University for one year from the date of separation, unless authorized by the President because of exigent circumstances. The date of separation for 12-month employees will be August 1, The date of separation for 9-month employees will May 14, 2018 (unless previously approved to assist with SACSCOC work or to teach summer school).
6 The approved applicant will separate from all employment at KSU and will be restricted from receiving any employment or other compensation from KSU for one year from the date of separation unless otherwise approved by the President. In consideration for participation in the VSIP and the receipt of incentives described herein, accepted applicants must voluntarily accept and sign a separation agreement that contains a release of tenure, all continuing employment rights, and any and all current claims against the Kentucky State University including but not limited to any claim against the Kentucky State University Board of Regents, Regents, employees, agents, attorneys, insurers and/or their assignees. XII. Schedule for the Incentive Program. If approved by the Kentucky State University Board of Regents on June 7, 2018, the Division of Human Resources will provide all staff and faculty with the VSIP Guidelines, the VSIP application, and the Waiver and Release on June 8, The Division of Human Resources will begin accepting applications on June 11, KSU will offer at least two general information sessions. The same information will be discussed at both sessions, and interested individuals can attend either meeting. The date and time of those information sessions will be sent through campus announcements and will be posted prominently on the KSU website. The final deadline for submitting applications is 4:30 p.m. EST on June 22, KSU will not accept or consider any applications submitted after the final deadline. Conditionally approved applicants will have until July 23, 2018 to review and execute the Waiver and Release. During this time, approved applicants are encouraged to seek advice from an attorney and a financial and/or tax counselor, and to contact the Division of Human Resources with any questions about the plan. Conditionally approved applicants will have seven (7) days from the date they signed the Waiver and Release to revoke their acceptance of the Waiver and Release. The date of separation for 9-month and 12-month employees approved for participation will be May 14, 2018 and August 1, 2018, respectively. The incentive payout date will be determined by the accepted applicant as described in Section IX above.
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