Separation Agreement Amendment by rts89862

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									                                                                                              2011
UC Davis
Voluntary Separation Program (VSP)
A. Program Objective

This program gives employees the opportunity to self-identify their willingness to voluntarily resign
their UC Davis employment. Through this program, volunteers assist the University in addressing
permanent budget reductions and help avoid involuntary layoff actions affecting colleagues who
may not have similar flexibility. Under this program, employees can receive severance pay for
voluntarily resigning subject to approval by UC Davis.

B. Eligibility

All non-probationary, career UC Davis employees at the Davis campus, including employees on
approved leaves, are eligible to participate, except as follows:

    1. An employee receiving retirement benefits from the University of California Retirement
       Plan (a rehired retiree)
    2. An employee in the Senior Management Group (SMG)
    3. An employee at the Managers and Senior Professional (MSP) level VIII – IX.
    4. An employee in any academic title
    5. An employee who, prior to January 15, 2011 is entitled to separation or severance pay
       under another arrangement, agreement or settlement with the University that is not part
       of the VSP
    6. An employee with an appointment of less than 50%
    7. Eligibility for represented employees will be determined by collective bargaining as
       appropriate.

UC Davis has the sole discretion to determine who is eligible to participate and for
determining selection for participation.

C. Timing

    1. The VSP is effective beginning February 15, 2011.
    2. The application period will begin February 15, 2011 and remain open until August 15,
       2012.
    3. Acceptance of applications will be made within 45 days of submission.
    4. The effective date of separation must be between March 31, 2011 and October 1, 2012.

D. Withdrawal of applications

Submission and acceptance of a VSP application is a serious commitment by the employee and
management supporting the voluntary separation. However, recognizing that life circumstances
can change, this program will allow some flexibility with employee withdrawal of their application
under the following schedule.

       If the employee provides more than 12 months notice of their intention to separate, the
        application may be withdrawn up to six months after management acceptance of the
        application
       If the employee provides between 6 and 12 months notice of their intention to separate,
        the application may be withdrawn up to three months after management acceptance of
        the application




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       If the employee provides less than six months notice of the intention to separate, the
        application may be withdrawn up to one month after management acceptance of the
        application
       At the request of an employee, management may cancel an application that has been
        accepted. This type of cancellation may occur at management’s discretion at any point
        during the program

E. Voluntary Separation Requirements

Each of the following requirements must be met in order to participate in the Voluntary Separation
Program. To fully understand this opportunity, employees may want to informally discuss interest
in the program with their Department Head prior to submitting a formal application.

    1. Justification. Through acceptance of a voluntary separation, a department must be able
       to demonstrate long-term salary savings that justify the payment of a severance. In
       evaluating the costs versus benefits of a VSP application, Department Heads may
       consider options such as:
             possible discontinuation of the function performed by the employee
             redistribution of work among other staff
             departmental reorganization that results in a long-term net salary savings at a
                 level that supports the severance payment.
    2. Application. Eligible employees may apply to participate in the VSP by submitting the
       application form to their direct supervisor. The application form must include a separation
       date on or after March 31, 2011 but no later than October 1, 2012. The separation date
       must be mutually agreed to by the employee and the Department Head.
    3. Approval. The application must be approved at each of the following three levels: 1) the
       Department Head, 2) the Dean or Vice Chancellor (or equivalent position), and 3) the UC
       Davis Associate Vice Chancellor of Human Resources. Approval will be determined
       based on campus’ operational needs. The application will not be approved if the unique
       skills, knowledge and abilities of an incumbent are highly specialized, the loss of the
       individual and/or position would be detrimental to operations, and/or the employee cannot
       be replaced internally.

E. Consideration Process

    1. With support from their Dean or Vice Chancellor (or equivalent position), the final
       decisions will be made by the Department Head based on the business needs of the
       department.
    2. The University has the sole discretion to determine who is eligible for the VSP and for
       determining selection for participation.

F. Benefit to the Employee

    1. Employees whose applications for a voluntary separation are accepted will receive
       severance pay based on the type of appointment and length of service after signature of
       the claims release. No individual severance can exceed $75,000. The amount of
       severance is based on years of service as follows:
           a. Professional and Support Staff (PSS) who meet the requirements shall receive
                severance pay as a single payment in the amount of 1 week’s pay for each full
                year of UC service (as defined in section G) up to a maximum of 16 weeks’ pay.
           b. Management and Senior Professionals (MSP I-VII)) who meet the requirements
                shall receive severance pay as a single payment in the amount of 1 month’s pay
                for each full year of UC service (as defined in section G.) up to a maximum of 6
                months of severance pay.




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            c.   Represented staff who meet the requirements shall receive severance pay under
                 the same schedule as stated in the layoff provisions of the respective
                 agreements.

G. Calculating Severance

Service for purposes of calculating severance will be based on full-time equivalent months of
University employment service as reflected in the University’s records and is determined at the
sole discretion of the University. Only full years of service will count toward the calculation of
severance pay. Employment prior to a break in service is not counted as service.

H. Requirements for Department Heads

The intent of this program is to reduce permanent staffing costs. The following restrictions will
help the organization ensure that this goal is met.

    1. Departments are required to fund the severance payment for staff approved to participate
         in the VSP.
    2. Department Heads who decide to accept a voluntary separation may not fill the position
         for at least 18 months in order to generate the funds needed for the severance payment
         and generate savings toward budget reductions.
    3. If a Department Head seeks to fill a position sooner than 18 months after the position is
         vacated, he/she may request an exception through their Dean or Vice Chancellor (or
         equivalent position). To support an exception, the Department Head must be able to
         demonstrate that refilling the vacant position is part of a restructuring plan that produces
         permanent salary savings and generates the funds needed for the severance payment.
    4. The Associate Vice Chancellor Human Resources must also approve all exceptions.

I. Requirements for Employees

    1. Program participants understand and agree that they will only be eligible for severance
       payments as described herein and waive rights to seniority-based reassignment
       provisions or preferential rehire or recall benefits.
    2. Participants agree that the effective date of their separation will be no later than October
       1, 2012.
    3. Except as provided in I-6, participants may not be reemployed for a period of 3 years (36
       months) from the date of separation under the VSP:
             by any University of California location
             in any appointment type
             at any percentage of time
             in any classification
       Employment includes any relationship with UC for which compensation is paid to the
       individual via the University payroll system, including but not limited to career
       appointments (regardless of percentage of time), limited, floater and contract
       appointments, and rehired retirees covered by the University’s policy on Reemployment
       of UC Retired Employees into Senior Management Group and Staff Positions and
       Academic Personnel Manual policies as applicable.
    4. Participants understand and agree that any future employment with the University will be
       governed by the employment procedures in effect at the time.
    5. In order to maintain eligibility for health and welfare benefits, participating eligible
       employees must retire within 120 days of their voluntary separation date. However, the
       retired UC employee is subject to the restriction in I-3 above and the restrictions in the
       University’s policy on Reemployment of UC Retired Employees.
    6. If an Electing Participant returns to any employment at the University during the 3 years
       following separation under the VSP, repayment of severance to the University by the
       Electing Participant is required as a condition of employment in accordance with the


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       provisions below, provided that the amount retained by the employee is at least $1,000,
       which the Electing Participant may retain as consideration for signing the release of
       claims. If the amount retained by the employee would be less than $1,000, then the
       employee repays only the portion of the payback amount that allows the employee to
       retain $1,000.
            If reemployment occurs within 1 – 12 months after separation, the entire amount
                of the severance received must be repaid, less $1,000 for the release of claims.
            If reemployment occurs within 13 – 24 months after separation, 50% of the
                severance received must be repaid, provided that the amount retained by the
                employee from the original lump sum is at least $1,000 (if not, then all but the
                $1,000 of the severance must be repaid).
            If reemployment occurs within 24 – 36 months after separation, 25% of the
                severance received must be repaid, provided that the amount retained by the
                employee from the original lump sum is at least $1,000 (if not, then all but the
                $1,000 of the severance must be repaid).
    7. Any severance payment of $50,000 or more must be approved by the President.
    8. To be eligible for any benefits provided under the Voluntary Separation Program, the
       Electing Participant must continue to perform as a satisfactory employee until the
       selected date of separation.

J. Release

    1. In order to receive the severance payment, the participant must terminate employment
       and sign a release of claims.
    2. A participant who is under 40 years of age must sign a general release of claims in order
       to receive payment of severance after termination of employment.
    3. A participant who is age 40 or over at the date of separation shall have 45 days to
       consider and sign the release of claims, including claims under the Age Discrimination in
       Employment Act, and accept the offer of severance.
    4. All participants shall have 7 days after signing the release of claims to revoke the release
       and refuse the acceptance of severance pay.

K. Time and Form of Severance Pay

    1. Any severance payment due to an Electing Participant will be paid in a single sum
       following separation from employment and delivery of a signed release, and for
       employees who are age 40 or over, after the end of the seven (7) day revocation period
       described J above.
    2. Electing Participants who are interested in pursing the possibility of making voluntary
       403(b) or 457(b) plan contributions from their severance payment may do so only if they
       can make the necessary arrangements with campus Payroll and Fidelity prior to their
       separation date and in accord with applicable plan guidelines and contribution limits.
       Under no circumstances can contributions be made to the 403(b) or 457(b) plans after
       separation.

L. Health and Welfare Benefits Coverage

The University’s normal contribution for the approved participant’s health, dental, vision and life
insurance coverage will continue through the end of the month following the date of separation.
The approved participant’s coverage will terminate on this date unless he/she elects COBRA
coverage or is eligible for retiree health and welfare benefits under the University’s programs, in
which case the terms of the retiree programs shall be applicable.

In accordance with COBRA requirements, the approved participant may purchase medical, dental
and vision coverage at the applicable COBRA group rates. These premiums must be paid
monthly, in advance, by the approved participant in order to continue coverage. In addition, the


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approved participant shall have thirty-one (31) calendar days from the date the coverage ends to
convert legal, life and AD&D to individual plans at his/her expense or elect portability for basic,
supplemental and/or dependent life insurance coverage. An approved participant’s short and
long-term disability insurance terminates on the last date of University employment. For additional
information on COBRA requirements, employees should contact the UC Davis Benefits office.

M. No Right to Continued Employment

The VSP does not grant or create any right to continued employment, and any pre-existing rules,
policies or agreements regarding the employment of approved participants continue to apply.

N. Amendment and Termination

The University may amend or terminate the Voluntary Separation Program at any time and for
any reason before any elections are made. The VSP shall automatically terminate effective
August 16, 2012.




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