IV. Plan Benefits

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.