IV. Plan Benefits
Eligible Employees who make an election to separate from service by June 30, 2020, or such alternate Exit Date approved by the University pursuant to the terms of Section III and based on the operational and educational needs of the University, during the enrollment period for the current plan, shall receive the following benefits under the Plan:
1. For faculty members and non-represented employees, a payment equal to three (3) months of his or her Base Pay, plus an additional amount equal to the lesser of three (3) months of his or her Base Pay or $20,000. For AFSCME-represented employees, a payment equal to eight (8) weeks of his or her Base Pay. The payment is payable according to one of the following schedules elected by the Eligible Employee:
a. A lump sum total payable on or about July 15, 2020;
b. Six (6) monthly payments made on or about the 15th of the month, from July 15, 2020 through December 15, 2020; or
c. Two (2) semi-annual payments, made on or about July 15, 2020, and October 15, 2020.
2. Eligible Employees who are not eligible for Medicare, will be eligible for the following healthcare benefits if the Eligible Employee chooses to continue group health benefits provided by the University, under the Consolidated Omnibus Budget Reconciliation Act (COBRA):
a. For non-represented and AFSCME-represented employees, the University shall pay the employer portion of the COBRA healthcare costs for a period of six (6) consecutive months beginning with the month following the Eligible Employee’s Exit Date.
b. For faculty members, the University shall pay the employer portion of the COBRA healthcare costs for a period of twelve (12) consecutive months beginning with the month following the Eligible Employee’s Exit Date.
To receive this benefit, Eligible Employees must be enrolled in the University’s group healthcare coverage prior to electing participation in this Plan. Eligible Employees must pay the employee portion of the COBRA healthcare costs during the six (or twelve) month period.
Notwithstanding the foregoing, the sum of the total payments and benefits provided under Subsections (1) and (2) of this Section shall not exceed the lesser of two times: (i) the employee’s annualized compensation for the tax year prior to the year of the Eligible Employee’s separation; or (ii) the Internal Revenue Code section 401(a)(17) limit on annual compensation for the tax year of the Eligible Employee’s separation. Notwithstanding anything in this Plan to the contrary, in no event may any payment under this Section IV be made after the end of the second taxable year following the year in which the Eligible employee retires or separates from service.
Eligible Employees shall continue to receive the tuition waiver benefit for four years following the Eligible Employee’s Exit Date. This tuition waiver benefit is not subject to Code sec. 409A regulations governing “window programs.” Participation in and receipt of any and all other retirement plans and benefits offered to an Eligible Employee will remain unchanged including but not limited to: the right to purchase continuation of health care coverage as is required under applicable federal law; (ii) cash out of sick leave and/or vacation, if qualified; and (iii) other benefits normally extended to separated employees.