2021 Voluntary Faculty Separation Incentive Program (VFSIP)

In this Plan:

A.    “Base Pay” means the Eligible Employee’s base salary provided for services to the University, as of May 31, 2021. For full-time academic administrators who hold faculty status, “Base Pay” means the Eligible Employee’s return-to-faculty salary as of May 31, 2021. If such return-to-faculty salary amount is not included in the employee’s current Unclassified Employment Agreement, offer letter, or other document, the Provost, in consultation with the academic administrator and other applicable parties (e.g., Dean of the involved College), will determine an appropriate return-to-faculty salary based on the University’s current employment practices. 

B.    “Code” means the Internal Revenue Code of 1986, as amended, and the guidance thereunder.

C.    “Eligible Employee” means a full-time faculty member on a nine-month contract who has completed three (3) full years of academic service as of May 31, 2021; and full-time faculty members and academic administrators with faculty status on a twelve-month contract who have completed three (3) full years of service with a hire date on or before June 1, 2018. 

Notwithstanding any provision to the contrary herein, Eligible Employee does not include: part-time, temporary, or contracted employees; or those who have retired and have subsequently been rehired by the University.

D.    “Exit Date” means a date from May 31, 2021  through August 31, 2021, as elected by the employee on the “Notice of Enrollment and Employee Information Form”, or such alternative retirement or separation date as determined by the University in accordance with the terms of this Plan.

E.    “University” means Kent State University.

F.    “Window Period” means the period in which an Eligible Employee may make an election to participate in this Plan, as defined in Section V of this Plan.

An Eligible Employee, as defined in Section I of the Plan, may make an election under this Plan during the Window Period. 
 

To participate in the Plan, an Eligible Employee must agree to separate from University service.  Eligible Employees making an election under this Plan must end employment with the University on a date from May 31, 2021 through August 31, 2021, or such alternative separation date as determined by the University in accordance with the terms of this Plan  

Following separation from service with the University, an Eligible Employee is free to accept full or part-time employment with any other employer.  There is no requirement that an Eligible Employee commence pension benefits under the State Teachers Retirement System, the Ohio Public Employee Retirement System, or the Alternative Retirement Plan.

Eligible Employees who make an election to separate from service on a date from May 31, 2021 through August 31, 2021, during the enrollment period for the current plan, shall receive the following benefits under the Plan:

1.    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. 
The payment is payable according to one of the following schedules elected by the Eligible Employee:

a.    A lump sum payable on or about the fifteenth of the month following separation; or
b.    Four (4) monthly payments made on or about the 15th of the month, for each of the four months following separation.

2.    Eligible Employees that 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.    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 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.

An Eligible Employee meeting the eligibility requirements of Section II may participate in this Plan by making an election to do so.  The election to participate in the Plan is subject to the following terms and conditions.

A.    The election is completely voluntary. 

B.    The Window Period for election shall begin on February 1, 2021, and end on March 31, 2021. Late elections will not be accepted.  All election forms must be delivered in person, via registered mail, or electronically by DocuSign to the University’s Human Resources Office (“Human Resources”) and must be received by Human Resources, or postmarked, by March 31, 2021. 

C.    An election is deemed made upon receipt by Human Resources of a signed copy of the Notice of Enrollment & Employee Information Form and the required waivers, releases, and other documentation described in Section IX below, provided that such election is timely made pursuant to Subsection (B) of this Section.  

D.    Except as provided in Subsections (E) and (F) of this Section V, once made, the election cannot be withdrawn or modified by the Eligible Employee or the University.

E.    The Eligible Employee shall have seven (7) days to revoke their decision to separate and participate in the Plan (the “Revocation Period”).  The Revocation Period will start from the first day following the day the Eligible Employee submits their completed election forms to University Human Resources (if submission was via mail, the first day following the postmark date) and will end seven (7) calendar days later.  An Eligible Employee’s revocation must be made in writing and be delivered in person, via registered mail, or emailed, (Attn. Jack Witt) hrweb@kent.edu, to Human Resources, Heer Hall, Kent State University, Kent, Ohio 44242 and be received by Human Resources, or postmarked, by the last day of the Eligible Employee’s Revocation Period.  

F.    The University reserves the right to determine whether to accept, modify, or terminate an employee’s election under this Plan, when, in the University’s sole discretion, such actions are deemed appropriate in order to meet the University’s academic, programmatic, or economic needs, or when the electing employee becomes incapable of carrying out his or her responsibilities and duties under this election. This right ends at the end of the Revocation Period.

G.    Notwithstanding Subsection (C) of this Section, with respect to full-time academic administrators who hold faculty status, if the Eligible Employee’s return to faculty salary is not included in the individual’s current Unclassified Employment Agreement, offer letter, or other document, and the Provost has not determined an appropriate return-to-faculty salary, then any election forms submitted by such an Eligible Employee shall not be deemed made upon receipt of Human Resources as described in Subsection (C) of this Section V. In such cases, an election will be deemed made if and when (i) an appropriate return-to-faculty salary is determined as described in Section I(A), (ii) that return-to-faculty salary is communicated to the Eligible Employee, and (iii) Human Resources receives, by March 31, 2021, from the Eligible Employee written confirmation that they have been informed of the return-to-faculty salary and reaffirm their election to participate in the Plan. Notwithstanding Subsection (E) of this Section, such an Eligible Employee’s Revocation Period will start from the first day following the day the Eligible Employee submits the written confirmation described in the previous sentence and will end seven (7) calendar days later. 

This Plan is not intended to provide retirement income, nor does it replace or alter the retirement plan or plans sponsored by the University.  The election to end employment with the University and to receive payments under this Plan will not change benefits provided under the University retirement program that an electing Eligible Employee may otherwise be eligible to receive.

With respect to payments made pursuant to Section IV(1) of the Plan:

A.    If the University has accepted an Eligible Employee’s written election to participate in the Plan and the Eligible Employee dies before his or her Exit Date, payments provided pursuant to Section IV(1) shall be made directly to the beneficiary named on the optional Eligible Employee’s Beneficiary Form  submitted with his or her election within sixty (60) days of the Eligible Employee’s death, or as soon as is administratively feasible thereafter.
 
B.    If the employee separates from service and is entitled to benefits under Section IV(1) of the Plan, but dies before receiving all such benefits, then the beneficiary named on the optional Eligible Employee’s Beneficiary Form submitted with his or her election shall receive the remaining benefits within sixty (60) days of the Eligible Employee’s death, or as soon as is administratively feasible thereafter.  

With respect to the healthcare benefits made pursuant to Section IV(2) of the Plan, if the University has accepted an Eligible Employee’s written election to participate in the Plan and the Eligible Employee dies before his or her Exit Date (or after his or her Exit Date, but before receiving all contributions or payments contemplated under Section IV(2)), then all contributions or payments made by the University pursuant to Section IV(2) shall cease immediately upon the Eligible Employee’s death.  The beneficiary named on the optional Eligible Employer’s Beneficiary Form is not entitled to any payments provided pursuant to Section IV(2).

Payment pursuant to Section IV will be made to a beneficiary only upon proper proof submitted to and accepted by the University, establishing legal entitlement to be paid.  

If the University has accepted an Eligible Employee’s written election to participate in the Plan and the Eligible Employee becomes disabled (so that in the opinion of a physician acceptable to the University, the employee will be unable to return to full-time work prior to the agreed Exit Date) then the Eligible Employee shall receive severance benefits on the same schedule that would have applied had he or she continued to work (or continued on approved leave) until the agreed Exit Date.  An Eligible Employee who becomes disabled after filing an election to participate in the Plan will not be able to revoke that election after the close of the Eligible Employee’s Revocation Period has passed.

To the extent required under any final judgment, decree, or order (including approval of a property settlement agreement), referred to as the “Order,” that (i) relates to the provision of child support, alimony payments, or marital property rights; (ii) is made in compliance with Code Section 414(p); and (iii) is made pursuant to a state domestic relations law, any portion of a Participant’s benefits may be paid to a spouse, former spouse, child, or other dependent of the Participant (the “Alternate Payee”).  A separate account shall be established with respect to the Alternate Payee, in the same manner as the Participant, and any amount so set aside for an Alternate Payee shall be paid out within ninety (90) days of the date of the Order.  Any payment made to an Alternate Payee pursuant to this paragraph shall be reduced by required income tax withholding.

The Plan’s liability to pay benefits to a Participant shall be reduced to the extent that amounts have been paid or set aside for payment to an Alternate Payee pursuant to an Order.  No such transfer shall be effectuated unless the University as the former Employer (plan sponsor) has been provided with such an Order. 

The University, or its agents and representatives, shall not be obligated to defend against or set aside any Order, or any legal order relating to the garnishment of a Participant’s benefits, unless the full expense of such legal action is borne by the Participant.  In the event that the Participant’s action (or inaction) nonetheless causes the University as former Employer to incur such expense, the amount of the expense may be charged against the Participant’s benefit amount and thereby reduce the University’s obligation to pay benefits to the Participant.  In the course of any proceeding relating to divorce, separation, or child support, the University shall be authorized to disclose information relating to the Participant’s benefits to the Alternate Payee (including the legal representatives of the Alternate Payee) or to a court.

As a condition of participation in the Plan, and in consideration of benefits to be received under the Plan, an Eligible Employee shall be required to waive all future employment rights and property rights, all entitlement to future wage and benefit increases, and all rights to participate in any University-sponsored benefit plans (other than the right to payments under this Plan and the right to purchase continuation of health care coverage as is required under applicable federal law).  The University and/or Board of Trustees reserve the right to offer or not offer similar plans in the future, without obligation to those electing to participate in this Plan.

An Eligible Employee who wishes to elect to participate in the Plan shall be required to execute and to deliver to Human Resources all of the following documents before the end of the Window Period.  Documents will be considered delivered to Human Resources if they are delivered in person, via registered mail, or electronically and received by Human Resources before the end of the Window Period. For enhanced security and to expedite processing, eligible employees may complete all forms electronically via DocuSign at the 2021 Voluntary Faculty Separation Incentive Program website.

•    “Release and Waiver of Claims Agreement”, Attachment A may be viewed under “Resources” on the VFSIP webpage 
•    “Notice of Enrollment and Employee Information Form” 
•    “Benefit Payment Schedule Election” 
•    “Beneficiaries for Plan Payments” (optional)

The University, at its discretion, may amend or terminate this Plan, provided that such amendment or termination shall not change any rights or interests of any employee who has made an election under it prior to such amendment or termination.

This Plan is intended to qualify as a severance pay plan under Code Section 457(e)(11) and a “window program” under Section 409A so as to not constitute deferred compensation under Code Sections 409A, 457(b), or 457(f).  In no event may the University or an Eligible Employee accelerate or delay payment or the Exit Date in a manner inconsistent with this intent.  The Plan shall be interpreted and administered in a manner consistent with this intent. Amounts payable under this Plan upon termination, or any similar term shall be payable only when the eligible employee incurs a “separation from service” as defined under Code Section 409A.  Each payment of benefits under this Plan is intended to constitute separate payments for purposes of Code Section 409A.