VOLUNTARY EARLY RETIREMENT INCENTIVE PLAN
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1 VOLUNTARY EARLY RETIREMENT INCENTIVE PLAN Eastern Michigan University (the University or EMU ) adopts the Eastern Michigan University Voluntary Early Retirement Incentive Plan (the Plan ). A. OVERVIEW The purpose of the Plan is to give Eligible Employees of the University the opportunity to elect a voluntary retirement from the University. Participation in the Plan is entirely voluntary on the part of an eligible employee, as defined below. For convenience, the Plan refers to all terminations of employment under the Plan as voluntary early retirement regardless of whether an Eligible Employee has applied for or commenced receiving retirement benefits under a retirement plan. B. ELIGIBILITY Employees who satisfy all of the following requirements set forth in this document are Eligible Employees for purposes of this Plan and are eligible to apply for a voluntary early retirement benefit under this Plan: 1. Employee Classification. The applicant must be a current employee of the University as of the date this Plan is offered, May 26, 2017, and belong to one of the following job classifications: AC AH CA AP CP CS FM PS PT/PE 2. The applicant must be eligible to retire no later than July 14, 2017 according to the following: in accordance with the terms outlined in the applicable EMU collective bargaining agreement under which the employee is covered or, if not covered by a collective bargaining agreement, in accordance with the terms specified under EMU s retirement benefit eligibility criteria, based on the combination of age and years of service at Eastern Michigan University. EMU s retirement benefit eligibility criteria for all job groups is attached as Exhibit B; or the applicant must be currently eligible to retire under any of the terms of the Michigan Public Schools Employees Retirement System (MPSERS) based on the applicant s age and years of service at Eastern Michigan University. The job titles and ages of each eligible employee, and the job titles and ages of all employees in the same job classifications and organizational units who are ineligible to participate in the Plan are attached as Exhibit C. Page 1 of 5
2 C. NOTICE AND RESIGNATION Participation in the Plan is entirely voluntary. An eligible employee may elect to participate in the Plan by completing an Election to Participate, Release & Resignation Agreement (attached as Exhibit A) as follows: 1. An eligible employee who elects to participate in the Plan must deliver or have delivered a signed Election to Participate, Release & Resignation Agreement to the Vice President of University Human Resources to voluntarily resign and relinquish his/her right in continued employment with the University by 4:30 p.m. on July 17, No extensions of time for submission of a signed Election to Participate, Release & Resignation Agreement shall be granted unless the University is closed on July 17, In that event, the submission shall be 4:30 p.m. on the next regularly scheduled work day. An eligible employee may voluntarily choose to sign the Election to Participate, Release & Resignation Agreement prior to July 17, Each eligible employee is advised to consult with an attorney before signing the Election to Participate, Release & Resignation Agreement. Each eligible employee has at least 45 days to review the Plan and Election to Participate, Release & Resignation Agreement after receipt. An eligible employee may voluntarily choose to sign the Election to Participate, Release & Resignation Agreement prior to the expiration of the 45 day period. 3. An eligible employee has seven (7) calendar days after signing the Election to Participate, Release & Resignation Agreement to revoke the Election to Participate, Release & Resignation Agreement. The revocation will be valid only if it is in writing and is delivered to the Vice President of University Human Resources before the end of the seven day revocation period. After the seven-day revocation period, the Election to Participate, Release & Resignation Agreement may not be revoked by the individual and is legally enforceable by the University. The eligible employee s last day worked ( separation of service date ) should be mutually agreed upon by the employee and his or her supervisor, or in the absence of a mutual agreement will be determined by the supervisor, but must be no later than Friday, August 11, If no date is selected, the eligible employee s separation of service date will be August 11, The University reserves the right to change the separation of service date of a participant to an alternate date based on operational needs as determined by the University in its sole discretion; provided, however, the alternate date will not be later than February 16, Any separation date beyond August 11, 2017 must be approved by the top divisional executive and the Vice President of University Human Resources. If the University exercises this right, the alternate date selected by the University becomes the separation of service date of the Employee. Failure to fulfill job requirements, including adherence to applicable collective bargaining agreements, policies and procedures through the Employee s separation of service date will result in forfeiture of the Plan benefits. No further compensation shall be earned after the eligible employee s separation of service date. Page 2 of 5
3 D. INCENTIVE BENEFIT Subject to Section I of this Plan, eligible employees who elect to voluntarily resign and comply with all of the requirements of this Plan are eligible to receive from the University: 1. Subject to applicable IRS limits, a onetime payment totaling 40% of their annual base salary as of May 26, 2017, less applicable withholding. This amount will be included in the eligible employee s final pay for the month of September If, in accordance with paragraph C, the University has extended the employee s separation of service date beyond August 11, 2017, this payment will be made in the final pay of the month following the employee s actual separation of service. E. RELEASE AND WAIVER OF CLAIMS To be eligible for the voluntary early retirement benefit under this Plan, an eligible employee must sign a waiver of any claims against the University, including a waiver of Age Discrimination in Employment Act of 1967 claims in the form provided by the University (Exhibit A). The waiver must also acknowledge that the eligible employee is voluntarily relinquishing his or her rights in continued employment with the University, in exchange for the benefits under this Plan. F. PLAN ADMINISTRATOR The University s Vice President of University Human Resources, or his designee, shall be the Plan Administrator. The Plan Administrator shall have the authority, in his or her sole discretion, to administer the Plan in accordance with its terms and applicable law and to interpret the plan terms. The Plan Administrator shall exercise authority in a nondiscriminatory manner. The Plan Administrator s duties include, but are not limited to, the right to interpret the terms of the Plan to accomplish its purpose. Specifically, the Plan Administrator may decide, in his or her sole discretion, all questions regarding eligibility for participation, eligibility for benefit payments, and the amount and manner of benefit payments. G. CLAIMS PROCEDURE An eligible employee, or his/her personal representative, may file a claim in writing under this Plan if the participant believes he or she has been treated unfairly with respect to the Plan or has been improperly denied benefits under the Plan. A written claim must be filed with the Plan Administrator within sixty (60) days of the denial or alleged unfair treatment. The Plan Administrator shall make a full and fair review of the claim within sixty (60) days and provide written notice as to the decision regarding the participant s claim. If the claim has been denied in whole or in part, the written notice shall set forth the specific reasons for the denial. Page 3 of 5
4 H. UNEMPLOYMENT COMPENSATION An eligible employee resigning under this Plan is not eligible for unemployment compensation benefits from Eastern Michigan University. An employee resigning under this Plan is not eligible to be reemployed by the University in a benefits eligible position or as a contractor external to the University, unless an exception is approved in writing by the Divisional Executive Officer and the Vice President of University Human Resources. I. TERMINATION OF BENEFITS Benefits shall not be paid to otherwise eligible employees who quit, who are involuntarily terminated, who are on layoff status or have been notified that they will be placed on layoff status. If an eligible employee dies after the effective date of his/her resignation and before payment under the Plan has been made, benefits under the Plan will be paid to the beneficiary designated by the eligible employee on the Election to Participate, Release & Resignation Agreement. If an eligible employee dies before the effective date of his/her resignation, no benefits shall be payable from the Plan with respect to the eligible employee. J. TERM OF PLAN The Plan shall terminate on the date all incentive benefits have been paid to each eligible employee who made a timely decision to participate in the Plan that was accepted by the University. Notwithstanding the foregoing, the University has the right within 30 days after May 26, 2017, to withdraw the Plan in its sole discretion, thus nullifying any rights under the Plan for any eligible employee, even for those eligible employees who had already submitted documentation to enroll in the Plan and been accepted by the University. K. AMENDMENTS TO THE PLAN The University may amend this Plan from time to time. However, unless required by law, no amendment, other than that stated in Section J above, shall affect the rights of any employee to any benefits under the Plan to which that employee may have previously become entitled. The Plan shall comply with all State and Federal laws and shall be amended, if necessary, in order to satisfy any such requirements. L. TAXES An eligible employee participating in the Plan, by signing the Election to Participate, Release & Resignation Agreement, acknowledges that he/she has been specifically advised to consult with an attorney regarding the Election to Participate, Release & Resignation Agreement and this Plan. The University, and its employees, the Board of Regents, agents, including, but not limited to, representatives and attorneys, shall have no liability regarding the tax consequences of payments under this Plan to eligible employees. Page 4 of 5
5 M. VALIDITY OF PLAN In the event that this Plan is found to be contrary to law during the term of its existence, this Plan shall immediately be cancelled and all pending elections shall be rejected. Employees whose elections had been accepted by the University at the time the Plan is cancelled pursuant to this paragraph shall continue to be covered by the provisions of the Plan to the extent permitted by law. N. SEVERABILITY In the event that any part of the Plan is found to be void, the remaining provisions of this Plan shall nevertheless be binding with the same effect as though the void provisions were deleted. O. FUTURE PLANS There is absolutely no assurance that this Plan or any similar plan will be offered in the future. The Plan is not precedent-setting. P. GOVERNING LAW This Plan shall be governed in all respects by the laws of the State of Michigan. Page 5 of 5
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