CLEMSON UNIVERSITY Retirement Incentive Plan Athletics October 10, 2012

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1 CLEMSON UNIVERSITY Retirement Incentive Plan Athletics October 10, 2012 Voluntary Retirement Incentive Plan CLEMSON UNIVERSITY, like most state agencies in SC, has received significant state budget cuts over the last four years, approximately $80.9M. The Clemson University 2020 Plan calls for strategic divestments and reallocations in order to advance the University s mission objectives, which include student engagement, capital improvements, IT infrastructure, and world-class faculty and staff. In response to the need for strategic resource reallocations, Clemson has successfully implemented various programs to reduce overall university costs, the separation plans (RIP/VSP) being the most successful to reduce personnel costs. Through the collaborative and supportive efforts of the State Office of Human Resources, effective plans (RIP/VSP) were implemented in fiscal years 2002, 2003, 2004, 2009, 2011, and It is important that Clemson continue these efforts, strategically managing personnel costs, to ensure that the University is able to provide quality educational, research, and service. This plan is submitted to fully outline a retirement incentive that has been developed by CLEMSON UNIVERSITY which will maximize personnel savings by offering options for employees to voluntarily retire. Participating colleges/divisions are funding the program within their existing funds. A copy of this plan, in its entirety, along with an Acknowledgement of Notice and Agreement and Release Form, will be provided to every CLEMSON UNIVERSITY employee who is, or will be, eligible to participate in the Retirement Incentive Plan on the effective date. Retirement Incentive Plan Participation in this Program is entirely voluntary. You are not required to participate in the retirement incentive program simply because you have received this notice. (Employees in receipt of this policy will be required to sign the attached Acknowledgement of Notice and return it to the Clemson University Office of Human Resources.) This notice explains the provisions that govern CLEMSON UNIVERSITY s Retirement Incentive Plan, and includes an Agreement and Release ( Agreement ) that you will use should you decide to participate in the Plan. The Agreement includes the employee s release of any and all claims that the employee could bring against the State or Clemson University, including claims under the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit Protection Act (OWBPA). This release, however, excludes any existing Workers Compensation claims filed by the employee. An Acknowledgement is also included in your receipt of the documents in this package. Please sign and return the Acknowledgement when you receive this notice. This plan has been reviewed and approved by the South Carolina Budget and Control Board s Division of Budget and Analyses. The plan is based on CLEMSON UNIVERSITY s ability to specifically demonstrate 1

2 cost savings. The results of the Retirement Incentive Plan will be reported to the Budget and Control Board following the effective date for implementation. The agency head is responsible for the approval of the Retirement Incentive Plan and its implementation. All decisions made under this plan by employees to retire are voluntary and are not considered grievable or appealable under the State Employee Grievance Procedure Act. For all information regarding this RIP, please visit the Office of Human Resources website at: Please direct any questions through the link provided at this site or contact the Office of Human Resources at (864) The Retirement Incentive Plan works as follows: 1. Eligibility A. To be eligible, employees must meet the eligibility requirements listed below in sections 1B-1D and must meet one of the following two criterion by December 31, 2012: 1) has at least 22 years of service established with the South Carolina Retirement System (SCRS), or 2) is age 60 or older and has at least five (5) years of service established with the SCRS. B. Clemson University employees in FTE positions in the department(s) listed below are eligible to participate in this Retirement Incentive Plan. All Departments in Athletics C. Employees, who are taking part in the TERI program, or any equivalent program for law enforcement officers, are not eligible to participate in this Plan. D. Employees who have not purchased enough service credit in addition to service credit available under the Incentive, defined below, to qualify for retirement as of December 31, 2012, as stated in A above, are not eligible to participate in this Plan. E. Employees choosing to participate in this Plan must declare their participation by executing the CLEMSON UNIVERSITY Retirement Incentive Agreement and Release no later than November 26, Employees must have the cost of their service credit (qualified or non-qualified time) to be purchased by CLEMSON UNIVERSITY established with and approved by the South Carolina Retirement System at the time they execute the CLEMSON UNIVERSITY Retirement Incentive Agreement and Release. Employees must also declare their retirement date from Clemson University no later than November 26, The retirement date shall be no earlier than the date the Employee qualifies for eligibility as stated in A above, unless the South Carolina Retirement System is unable to verify and process the Employee for retirement as of that date. In such a case, the specific retirement date will be established on an individual basis. The retirement date shall be no later than December 31, 2012, unless the South Carolina Retirement System is unable to verify and process the Employee for retirement as of that date. In such a case, the specific retirement date will be established on an individual basis. 2

3 F. Employees choosing to participate in this Plan cannot be employed with Clemson University in an FTE position for a period of two (2) years from the date of retirement. G. Under no circumstances will age, race, color, religion, creed, national origin, sex, disability, military status, political affiliation, or genetic information be employed by any Clemson University official in making any decision under this Plan. H. Clemson University may hire participating employees into a temporary position, as Clemson University deems necessary, in extraordinary situations. Employees choosing to participate in this Plan cannot be rehired with Clemson University in a temporary position for a period of fifteen (15) calendar days from the date of retirement. I. Employees not covered by the grievance procedure set forth either in Clemson University s Policies & Procedures Manual or in Clemson University s Faculty Manual are not eligible to participate. J. Employees who participate in a Voluntary Separation Program are not eligible to participate in this RIP. 2. The Incentive Employees participating in the Retirement Incentive Plan will receive payment for unused annual and compensatory leave balances as provided in the State Human Resources Regulations. As voluntarily designated by the employee on the Agreement and Release Form, CLEMSON UNIVERSITY will provide to the employee not more than one of the following two (2) options, and no options may be combined: (1) Subject to the limitations stated in Limit on the Incentive below, CLEMSON UNIVERSITY will purchase up to six (6) years of qualified service credit on behalf of an employee who qualifies for eligibility as stated above and elects to participate in the Plan, OR (2) Subject to the limitations stated in Limit on the Incentive below, CLEMSON UNIVERSITY will purchase three (3) years of nonqualified service credit on behalf of an employee who qualifies for eligibility as stated above and elects to participate in the Plan. IMPORTANT - As stated in (1E) above, to participate in this plan an employee must have the cost of his/her service credit (qualified or non-qualified) to be purchased by CLEMSON UNIVERSITY established with and approved by the South Carolina Retirement System at the time he/she signs the Retirement Incentive Agreement and Release (which can be no later than November 26, 2012). This process of establishing the cost of service credit could take a number of weeks to complete; therefore, employees desiring to participate in this plan should contact the University s Office of Human Resources to begin this process as soon as possible. 3

4 3. Limit on the Incentive A. Under no circumstances will CLEMSON UNIVERSITY purchase more than six (6) years of qualified service credit or more than three (3) years of nonqualified service credit. B. Under no circumstances will CLEMSON UNIVERSITY purchase service credit to exceed one year s annual salary for the eligible employee. (Annual salary excludes all compensation for dual employment for all employees. The year s salary for nine-month faculty is the nine month base salary which excludes all summer and other compensation.) C. Under no circumstances will CLEMSON UNIVERSITY purchase service credit in excess of what is allowed by the South Carolina Retirement System for the participating employee. 4. Timing of Acceptance & Notice Provisions A. After the acknowledgement has been distributed, eligible employees who choose to participate in the Retirement Incentive Plan must complete an agreement and release form between October 10, 2012 and November 26, B. Eligible employees may have forty-five (45) calendar days to consider whether to participate in this plan. The final date to accept participation in this Plan is November 26, If an eligible employee received notice of the RIP after October 10, 2012, the final date to accept participation will be forty-five (45) calendar days after the eligible employee received notice. C. After an eligible employee agrees to participate in the Plan, the employee will have seven (7) calendar days from the date of his/her acceptance to revoke his/her acceptance. D. All employees who accept participation in this Plan must declare by November 26, 2012 to retire and to separate from service with Clemson University and the State of South Carolina effective on or before December 31, The effective date of retirement shall be established no later than November 26, 2012 and Retirement shall occur on or before December 31, 2012, unless the South Carolina Retirement Systems is unable to verify and process the employee for retirement as of that date. In such a case, the specific retirement date will be established on an individual basis. E. Employees choosing to participate in the Retirement Incentive Plan must agree that they would not otherwise be entitled to the incentive but for their participation in the Retirement Incentive Plan. F. All eligible employees may consult with a private attorney prior to agreeing to participate in this Plan. Any costs or fees for consultation with private attorneys are the responsibility of the employee. G. In addition to receiving copies of this notice and the Agreement and Release, should you participate in this Plan, the Age Discrimination in Employment Act (ADEA) requires that Clemson University provide you a list of (1) all job titles and ages of Clemson University employees who are eligible to participate in the Plan, and (2) all job titles and ages of Clemson University employees that are not eligible to participate in the Plan. 4

5 H. All employees receiving this notice, Agreement and Release, and the list described in Section G of this notice must sign the attached Acknowledgement of Notice of CLEMSON UNIVERSITY Voluntary Retirement Incentive Plan upon receipt and return the Acknowledgement to Clemson University s Office of Human Resources by October 25, I. The Office of Human Resources at Clemson University must complete all paperwork for participants in the Retirement Incentive Plan (RIP) at Clemson University. J. Employees must give to their immediate supervisor written notice of their retirement at least fourteen (14) calendar days in advance of the retirement date. 5

6 Acknowledgement of Notice of the CLEMSON UNIVERSITY Voluntary Retirement Incentive Plan October 10, 2012 FY I, the undersigned, have received a copy of the Plan explaining the provisions of CLEMSON UNIVERSITY Retirement Incentive Plan. I understand that my participation in the Plan is voluntary. I have also received a copy of the attached Agreement and Release. To participate in the Retirement Incentive Plan, I understand that I must make an application, be accepted into the Plan, and sign and abide by the Agreement and Release. Name (please print): Signature: Date: Please return this acknowledgement by October 25, 2012, to the Clemson University Office of Human Resources in the enclosed envelope. CU Office of Human Resources Date Received 6