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Policies

Severance Benefits

 

Applicable Employee Classes:

All Full-Time and Part-Time Florida Tech Staff Employees

 

Effective Date:

October 2019     

Approved by:   

 T. Dwayne McCay, President

Severance Benefits

Purpose/Goal:

The Florida Tech Severance Benefits are intended to provide additional compensation to Employees who lose their job as a result of a job elimination, reductions in force or involuntary separations other than termination for cause. 

Eligibility: 

All full and part-time Staff Employees are eligible upon completion of six months of continuous service.  If the employment is terminated prior to completion of six months of continuous service, the Employee shall not be entitled to receive any severance benefits.  This policy is not applicable to faculty.

Description:

The plan provides standard Employee severance benefits and provides enhanced benefits to Employees who are designated Executive. 

Benefits:

Employees that satisfy the eligibility requirements shall be eligible for the following Severance benefits:

Regular Severance Pay:

A lump-sum severance payment equal to one week of Base Salary times the employee’s full and partial Years of Service.  For example, severance pay for an Employee with three and one-half years of consecutive service, is determined by multiplying one week of the Participant’s Base Salary by 4.0.  The minimum severance benefit for an eligible employee is two weeks of Base Salary and the maximum standard benefit is 12 weeks of Base Salary.  To receive the severance pay, the Employee must sign and return an agreement releasing Florida Tech from employment related claims.  Regardless of whether employee signs the severance agreement, employees who are terminated, other than for cause, shall receive accrued vacation pay out, subject to the requirements of the HR Vacation Leave Policy 2.10. 

Enhanced Severance Pay:

An Employee classified as Executive will receive a lump-sum severance payment equal to two weeks of Base Salary times the employee’s full and partial years of continuous service.  For example, severance pay for an Employee with three and one-half years of continuous service, is determined by multiplying two weeks of the Participant’s Base Salary by 4.0.  The minimum executive severance benefit is two weeks of Base Salary and the maximum executive severance benefit is 24 weeks of Base Salary.  To receive the severance pay, the Employee must sign and return an agreement releasing employment related claims.  Regardless of whether employee signs the severance agreement, employees who are terminated, other than for cause, shall receive accrued vacation pay out, subject to the requirements of the HR Vacation Leave Policy 2.10. 

Plan Administration: 

In the event the impacted Employee is offered and accepts another position within the University, the Employee is not eligible to receive severance benefits for the position elimination or involuntary separation.  If the employee is terminated for performance or conduct, severance benefits will not be paid.  Employees who voluntarily resign from employment with the University shall be ineligible for the Severance Benefits.   

This policy is subject to amendment.