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Classified Staff Severance Plan

Classified Staff Severance Plan. Jackson’s Mill Center for Lifelong Learning Linda Hildebrand Brian Westfall April 28, 2003. Severance Plan Basics. Benefits eligible classified staff 15 Years of Service Choice of exit date June 30, 2003 January 15, 2004

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Classified Staff Severance Plan

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  1. Classified Staff Severance Plan Jackson’s Mill Center for Lifelong Learning Linda Hildebrand Brian Westfall April 28, 2003

  2. Severance Plan Basics • Benefits eligible classified staff • 15 Years of Service • Choice of exit date • June 30, 2003 • January 15, 2004 • Benefits payable based on exit date chosen

  3. Severance PlanElection Period April 22, 2003 To June 17, 2003

  4. Benefits PayableJune 30, 2003 Exit Date • 100% of 2002-2003 Base Salary • $45,000 Limit • Payable in 96 monthly installments • Applicable taxes deducted • Direct deposit required

  5. Benefits PayableJanuary 15, 2004 Exit Date • 100% of 2002-2003 Base Salary (less $5,000) • $40,000 Limit • Payable in 96 monthly installments • Applicable taxes deducted • Direct deposit required

  6. Impact of Ageas of Exit Date • Over age 59, number of monthly installments reduced so all payments completed prior to age 67. • At 66 or older, lump sum payment

  7. Pros and Cons of Severance Plan • Pros • Ideal for current retirement eligible employees • Can begin receiving monthly annuity also • If PEIA participant, would receive sick leave conversion benefit for premiums • Death benefits payable to beneficiaries

  8. Pros and Cons of Severance Plan • Cons • Not an early retirement option for retirement ineligible employees • Cannot begin receiving monthly annuity • If PEIA participant, COBRA coverage for 18 months – paying total monthly premium • $309 (average) Single • $472 (average) Employee w/children • $785 (average) Family

  9. Pros and Cons of Severance Plan • Cons • Higher tax liability for participants over age 59 • Waives all future employment rights • Waives all rights to participate in any University-sponsored benefit plans • Agree not to apply for reemployment

  10. Individualized Notices to Employees • Educators Preferred Corporation • Exhibit A – Plan Description • Exhibit B – Indication of Interest • Exhibit C – Release and Waiver of Claims • Exhibit D – Notice of Enrollment Form • Exhibit E – Table of Eligible/Ineligible by Age • Designation of Beneficiary Form • W-4P Withholding Certificate for Pension or Annuity Payments • Electronic Funds Transfer/Direct Deposit Form

  11. Questions? Linda.Hildebrand@mail.wvu.edu Brian.Westfall@mail.wvu.edu

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