ITEM 118-2401-R0103 – Attachment

 

PROPOSED

Montana State University Extension Service

Voluntary Retirement Incentive Plan

 

This plan is being proposed to fully explore the option of a retirement incentive developedby Montana State University Extension Service (MSU-ES) to maximize personnel savings by offering options incentives for employees to voluntarily retire.  A copy of this proposed plan, in its entirety, along with an Acknowledgment of Notice and Interest Form, will be provided to every MSU-ES employee who is, or will be, eligible to participate in the Retirement Incentive.  We are offering this proposal in anticipation of the plan’s approval by the Board of Regents at their next regularly scheduled meeting in January 2003.

 

Proposed Montana State University Extension Service Voluntary Retirement Incentive Plan

 

The Proposed Montana State University Extension Service Voluntary Retirement Incentive Plan is entirely voluntary.  You will not be required to participate in the Retirement Incentive Plan simply because, as an employee, you receive a notice offering the plan.

 

The notice explains the provisions that govern the proposed MSU-ES Retirement Incentive Plan, and will include an Acknowledgment and Interest form.  You will be asked to sign and return the Acknowledgment and Interest form, regardless if you plan to accept the incentive or not.

 

All decisions made under this proposed plan by employees to retire are voluntary and are not considered grievable or appealable.

 

Direct any questions you have about retirement and the proposed Retirement Incentive Plan to Mary Fran San Soucie, Personnel Specialist, in the Extension Personnel Office at 406-994-6648 (maryfran@montana.edu).

 

The proposed MSU-ES Voluntary Retirement Incentive Plan will work as follows:

 

The Incentives

 

Employees participating in the proposed Retirement Incentive Plan will receive, upon termination, payment for unused annual leave and one-quarter of unused sick leave balances, as provided for in the MSU Personnel Policy and Procedures Manual (http://www2.montana.edu/policy/personnel/index.html).

 

As voluntarily designated by the employee on an Agreement form to be provided after Board of Regents’ approval, MSU-ES will provide to the employee the following incentives:

 

1.      MSU-ES will pay the employee an incentive that is equal to 15% of that individual’s ending FY03 base annual salary, as listed on the employee’s Board of Regents contract or Letter of Appointment.  This will be the annual salary that is in effect November 1, 2002.

2.      MSU-ES will pay the employee’s portion of health care premiums for one year following the effective date of retirement.

 

Several options will be available for the payout of this incentive; an information packet and individual counseling will be provided to help in making a decision on the payout.

 

Eligibility

 

A.      Several groups of employees covered by federal retirement in Extension positions are eligible to participate in the proposed MSU-ES Retirement Incentive Plan.  These categories include:

 

$        employees who are currently eligible to retire under the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), or will be eligible for an optional (other than early optional) retirement as of June 30, 2003, are eligible to participate in this Plan.

$        employees who will be eligible to retire under the Voluntary Early Retirement Authority, when approved by the Office of Personnel Management, under the CSRS or FERS systems as of June 30, 2003, are eligible to participate in this Plan.

$        employees who are eligible for a deferred retirement under the CSRS or the FERS system as of June 30, 2003, are eligible to participate in this Plan.

 

B.      Employees who are not eligible to retire under one of the above provisions under CSRS or FERS as of June 30, 2003, are not eligible to participate in this proposed Plan.

 

C.      Under no circumstances will age, race, color, religion, creed, national origin, sex, disability, military status, sexual orientation, or political affiliation be employed by any MSU-ES official in making any decision under this proposed Plan.

 

D.      The Montana State University Extension Service may offer participating employees a post-retirement contract under the MUS policy regarding post-retirement contracts, as the MSU-ES deems necessary, on a case-by-case basis.

 

Timing of Acceptance & Notice Provisions

 

$                    Employees eligible to participate in the proposed Retirement Incentive Plan  may indicate an interest in participating in this plan beginning on December 15, 2002, by indicating that interest on the enclosed Acknowledgment and Interest form.  Again, we anticipate receiving Board of Regents’ approval of the plan in January 2003.

$                    After issuance of the final Voluntary Retirement Incentive Plan, eligible employees will have forty-five (45) calendar days to consider whether to participate in the final plan. An Agreement form will be mailed to eligible employees following Board of Regents’ approval.

$                    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 on an Agreement form to revoke his/her acceptance.

$                    An employee who accepts participation in this proposed Plan must retire and separate from service with the Montana State University Extension Service effective no later than June 30, 2003*, and indicate the effective date of retirement on the Agreement form.  The effective date of retirement and separation shall be established by mutual agreement between the employee and MSU-ES.

$                    All eligible employees are encouraged to consult with a private attorney, certified public accountant, financial planner or other professional advisor prior to agreeing to participate in this Plan.  Any costs or fees for consultation with private attorneys or financial planners are the responsibility of the employee.  The MSU-ES personnel office employees are also available for confidential consultation throughout this process.

 

      All employees receiving this notice, must sign the attached Acknowledgment of Notice and Interest of the proposed MSU-ES  Voluntary Retirement Incentive Plan upon receipt and return said Acknowledgment to Mary Fran San Soucie of the MSU-ES Personnel Office by Friday, December 27, 2002.

 

*depending on availability of funding for the incentives, some employees may be asked to delay their date of retirement to July, 2003.


Acknowledgment of Notice of

and Interest

in the proposed

Montana State University Extension Service

Voluntary Retirement Incentive Plan

 

 

 

I, the undersigned, have received a copy of the Plan explaining the provisions of Montana State University Extension Service Retirement Incentive Plan, and I understand its contents.  I understand that my participation in the Plan is voluntary. To participate in the proposed Retirement Incentive Plan, I understand that I must make an application, be accepted into the Plan, and sign and abide by an Agreement to be signed at a later date.

 

 

 

Name (please print):                                                                                          

 

 

Signature:                                                                                                        

 

 

Date:                                                                                                               

 

 

Please return this acknowledgment by December 27, 2002 to Mary Fran San Soucie in the Extension Personnel Office, PO Box 172230, Bozeman, MT 59717-2230.

 

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

 

                                                            INTEREST STATEMENT:

 

I am interested in the proposed plan and would like to explore the possibility of retirement by June 30, 2003.

 

 

 

Signature:                                                                                                                    

 

 

Received by:

 

                                                                                                                                   

Mary Fran San Soucie, Personnel Specialist                                Date Received