RIT
Human Resources

Severance Plan

Important Information

The information in this document is a summary of the major provisions of this benefit plan, and constitutes the summary plan description as governed by the Employee Retirement Income Security Act of 1974 (ERISA). Benefits under the plan are determined by the terms of the underlying plan document and contracts. In the case of any inconsistency between this document and the plan document or contract, the plan document or contract will govern your rights and benefits. \n\n RIT intends to continue the benefit plans indefinitely, but reserves the right to modify or terminate all or any portion of the employee benefits package at any time with or without notice. Such changes automatically will apply to you and your employment relationship at RIT. Participation in this plan is provided to eligible employees and does not constitute a guarantee of employment, requires continued employment and eligibility and is subject to the terms and conditions of the underlying plan document and insurance contracts.

Table of Contents

Plan Number: 507
Plan Year: 1/1-12/31
Plan Established: 04/10/1996

Key Features of the Rochester Institute of Technology Severance Plan

Types of Terminations Covered

Benefits paid in the event of the following conditions:

Benefits Payable

Specific Coverage Continuation

Introduction

Rochester Institute of Technology strives to maintain stable employment. However, under certain conditions employment terminations may be unavoidable. The purpose of the Rochester Institute of Technology Severance Plan (the Plan) is to provide financial support and continuation of some benefits, for a pre-determined time, to eligible employees.

This summary provides you with detailed information about this Plan. Benefits under the Plan are determined by the terms of the underlying plan document. In the case of any inconsistency between this summary and the plan document, the plan document will govern your rights and benefits.

RIT intends to continue this Plan indefinitely, but reserves the right to modify or terminate all or any portion of the Plan at any time with or without notice. Such changes automatically will apply to you and your employment relationship at RIT. Participation in this Plan is provided to eligible employees and does not constitute a guarantee of employment, requires continued employment and eligibility and is subject to the terms and conditions of the plan document.

RIT admits and hires men and women, veterans and disabled individuals of any race, color, religion, national or ethnic origin, sexual orientation or marital status, in compliance with all appropriate legislation.

After you have read this information, contact the Human Resources Department with any questions.

General Information

Who is Covered and When

All regular full-time, extended part-time and part-time staff are covered. Eligible employees are covered by the Severance Plan effective on their date of hire.

Faculty terminations, including tenured, tenure-track, non-tenure track, and adjunct faculty are not covered by this plan; rather, they are addressed in the RIT Institute Policies and Procedures Manual. In addition, staff terminations, involving individuals hired with specified limited terms of employment, such as employees hired on grants and contracts, are not eligible or covered by the Severance Plan.

When Coverage Ends

Coverage under the Plan ends when:

Severance Benefit Eligibility

You will be eligible for severance benefits in the event RIT terminates your employment for one of the following reasons:

You will not be eligible for severance benefits, however, under the following circumstances even if you might otherwise qualify for a severance pay benefit under this Plan:

  1. you fail to continue in the employ of RIT, satisfactorily performing your assigned duties, until the date actually set for your termination by RIT;
  2. you are terminated for cause;
  3. you are terminated by retirement, resignation, death, permanent or temporary disability (occupational or not
  4. you decline a transfer to comparable employment with RIT; for purposes of this Plan, comparable employment means a position within 10% of your current rate of pay;
  5. your position with RIT is eliminated due to a divestiture and you are offered comparable employment (as defined in d above) or accept employment, whether comparable or non-comparable, with the acquiring organization; for this purpose, a “divestiture” means a sale or other disposition by RIT or a subsidiary of RIT of a division, business, function, facility or unit or other group of assets; or
  6. you are receiving greater benefits under any other separation allowance plan sponsored or offered by RIT.

When Severance Benefits End or Change

Plan benefits and payments will be discontinued if and when you:

The severance payment amount will change if and when you become re-employed as an RIT employee in less than comparable employment. In this case, your severance payment amount will be adjusted such that your new employee pay plus the adjusted severance pay will equal the severance pay you had been receiving. This additional, adjusted pay amount will continue until the date your severance payments were scheduled to end. In addition, you will be eligible for benefits based on the employment category in which you are re-hired, but will be adjusted such that your employee benefits will not be less than they would have been while eligible for severance benefits.

If you are re-employed with RIT, your severance benefits will not be reinstated or continued if:

  1. a) you are terminated for cause;
  2. b) you are terminated by retirement, resignation, death, permanent or temporary disability (occupational or not).

Calculation of Severance Benefits

Severance benefits will be equal to 100% of your base pay and will be paid to you for a specified period of time, based on your years of service as of your date of termination, as shown in the following table. Years of Service means all years of service since your adjusted date of hire rounding to the nearest whole year. For example, if you have 8 years, 10 months of service, you will receive credit for 9 years. On the other hand, if you have 8 years, 3 months of service, you will receive credit for 8 years.

Severance payments will be equal to one month for every two years of service as shown on the schedule below:

Years of Service Months of Severance
Up to 1 .5
2 1.0
3 1.5
4 2.0
5 2.5
6 3.0
7 3.5
8 4.0
9 4.5
10 5.0
11 5.5
12 or more 6.0

In order for employees on different payrolls to receive equal benefits, severance payments are calculated as follows:

Payment of Benefits

Payments from the Severance Plan are made with the same frequency as your wages are paid during active employment. Those paid on a bi-weekly schedule will receive an adjustment in their last payment so that the full severance amount is paid out.

Example 2: In the case of John from our example above, his usual bi-weekly gross pay is $960 ($480 weekly x 2). His employment is terminated July 10, which is the beginning of the bi-weekly pay period. His severance benefits will be paid as follows (gross amounts are shown; actual payments will be reduced by taxes and other deductions):

Pay Period Begins Pay Period Ends Pay Date Amount
July 10 July 23 July 31 $960
July 24 August 6 August 14 $960
August 7 August 20 August 28 $960
August 21 September 3 September 11 $960
September 4 September 17 September 25 $960
September 18 October 1 October 9 $960
October 2 October 15 October 23 $480
(last pmt adjusted)
Total Paid     $6,240

No lump sum payments will be made; however, in the event of your death while receiving severance pay, any unpaid balance will be paid in a lump sum to your estate. Applicable federal, state and local income taxes and Social Security and Medicare taxes are withheld from Severance Plan payments.

Continuation of Benefits

If you have been participating in any of the following benefit programs, your coverage will end as outlined below. Severance Plan payments do not extend your termination date for benefits purposes.

Health Care Benefits (Medical, Dental, Vision and Employee Assistance Program)

Coverage continues until the end of the month in which your employment is terminated (the date your severance payments begin). You may continue coverage under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). You may elect to continue coverage under COBRA for up to eighteen (18) months.

The cost of the COBRA coverage will be the employee contribution amount during the Severance Plan payment period and will be paid on an after-tax basis; after your Severance Plan payments end, the cost will be the full cost plus a 2% administrative charge as allowed under current law, for the remainder of the 18 month COBRA period.

If you are eligible to retire when your employment terminates, then eligibility for medical and vision coverage (but not dental) will continue after your Severance Plan payments end, at which time you will be considered retired. Your contributions will be determined as if you retired on the date your employment terminated. However, if you are retirement eligible at the time your employment terminates, but under age 55 at the time your Severance Plan payments end, then your medical plan contributions will be the same as if you were age 55, rather than being required to pay 100% of the premiums. This exception only applies if you receive Severance Plan payments upon termination of employment.

Beneflex

Participation ends on your date of termination. You may continue coverage under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). You may elect to continue coverage under COBRA until the end of the calendar year in which your employment is terminated.

The cost of the COBRA coverage will be the same amount you contributed as an active employee during the Severance Plan payment period and will be paid on an after-tax basis; after your Severance Plan payments end, the cost will be your contribution amount plus a 2% administrative charge as allowed under current law, until the end of the calendar year in which your employment is terminated.

As with active employees, you have until April 15 of the calendar year following your termination date to file for reimbursement of expenses incurred in the previous year. Please Note: you are eligible to submit claims for reimbursement for Dependent Care and/or Health Care services provided from your Beneflex participation date (generally January 1) to the date of your termination. If you continue to participate under COBRA, you will be able to submit claims with dates of service after your termination date. There is no provision to continue participation under the Dependent Care Spending Account under COBRA.

Life, Accidental Death & Dismemberment, and Long Term Disability Insurance

Coverage ends on your date of termination. If you would like to continue your Life Insurance and/or AD&D Insurance coverage on an individual basis at group rates, please contact the Human Resources Department as soon as possible to request the necessary form. You must complete and return the form to the insurance company within 31 days of your termination date. RIT’s long-term disability benefits cannot be continued on an individual basis.

Retirement Program

Participation continues until the end of the month in which your employment is terminated (the date your severance payments begin). If you would like information about your eligibility for distribution, you should contact Fidelity and/or TIAA/CREF directly. Fidelity's number is (800) 343-0860 (voice) and (800) 259-9743 (TTY); TIAA-CREF's number is (800) 842-2776 (voice) and (800) 842-2755 (TTY).

Tuition Waiver Benefits

Employees not eligible for retirement from RIT, and whose employment is terminated under this Plan, will be eligible to continue their tuition waiver benefits for themselves and dependents if they are already enrolled, have been accepted, or are taking classes as part of a matriculated program. Tuition waiver benefits can continue for up to 4 years from the earlier of the date of employment termination or completion of the baccalaureate or masters degree.

Employees not eligible for retirement from RIT, and whose employment is terminated under this Plan, will be eligible to continue their tuition waiver benefits for themselves and dependents in accordance with the following schedule if they are not already enrolled, accepted or taking classes as part of a matriculated program. The percentage of tuition to be waived will be the percentage applicable as of the last day worked. Tuition waiver benefits can continue for up to the duration shown in the chart below from the date of employment termination or until the completion of the baccalaureate or masters degree, which ever comes first.

>Years of Service Duration of Tuition Waiver
1 to 5 years 1 year after termination
6 to 9 years 3 years after termination
10 years or more 4 years after termination

As stated in RIT's Tuition Waiver policy, all students applying for tuition waiver benefits must apply for a New York State TAP Grant before receiving tuition waiver benefits.

Tuition Exchange

Certification of eligibility under this plan continues through the academic year following the year in which employment is terminated (benefit continues to be subject to approval of importing college/university and subject to RIT's continued favorable exchange status with The Tuition Exchange, Inc.

Tuition Assistance and Tuition Scholarship

Participation in these plans ends at the close of the quarter/semester in which the date of termination of employment falls.

Voluntary Deductions

Any payroll deductions for previously approved payments, such as the United Way and Credit Union, will continue to be withheld from Severance Plan payments unless you cancel them in writing. Participation in voluntary deduction plans such as Hyatt Legal, VIP Services and long term care insurance will continue through the severance pay period. Participation in Hyatt Legal will end on the last day of the severance pay period. Contact representatives of VIP Services and long term care insurance to make arrangements for direct billing if you wish to continue participation after the end of the severance pay period.

Any other benefits or payments not described above end on the date of termination of employment.

Special Benefits

Outplacement Services

Employees receiving benefits from the Severance Plan are eligible for Outplacement Services. The purpose of Outplacement Services is to provide counseling and assistance in developing job search skills.

Affected employees will receive contact information for HR-approved organizations that provide outplacement services.

Retraining Allowance

Employees receiving benefits under the Severance Plan are eligible for a Retraining Allowance. The purpose of the Retraining Allowance is to provide financial assistance for those former employees who undertake courses of study to develop skills needed for a new career.

RIT will reimburse employees with at least one year of service up to $1,000 at any organization offering skills enhancement/training. This benefit is allowed up to one year from the date of employment termination and requires notification and approval of Human Resources prior to registration. The retraining allowance is payable to employees terminated under this Plan for the cost of tuition/registration fees. It does not cover books, supplies, tools or equipment required for the course, or other fees associated with the course.

Miscellaneous

Employee discounts at Barnes & Noble @ RIT end on the date of termination. To receive a refund of unused “debit card” money, please contact Dining Services directly at 475-2228 (V/TTY) or 475-7062 (V).

Keys, equipment (including desktop or laptop computers), and your RIT ID card must be returned to your department head on your last day of work. Any outstanding parking fines should be processed through Public Safety and outstanding Library books and fines should be handled through the Library.

Your Rights under ERISA

[The U.S. Department of Labor requires that the following notice be included in all Summary Plan Descriptions.]

As a participant in Rochester Institute of Technology benefit plans, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to:

Receive Information About Your Plan and Benefits

Examine, without charge, at the plan administrator's office and at other specified locations, such as worksites, all documents governing the plan, including insurance contracts, and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration.

Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The administrator may make a reasonable charge for the copies.

Receive a summary of the Plan's annual report. The Plan Administrator is required by law to furnish each Participant with a copy of this summary financial report.

Continue Group Health Care Coverage

Continue health care coverage for yourself, spouse or dependents if there is a loss of coverage under the plan as a result of a qualifying event. You or your dependents may have to pay for such coverage. Review this summary plan description and the documents governing the plan on the rules governing your COBRA continuation coverage rights.

Reduction or elimination of exclusionary periods of coverage for preexisting conditions under your group health plan, if you have creditable coverage from another plan. You should be provided a certificate of creditable coverage, free of charge, from your group health plan or health insurance issuer when you lose coverage under the plan, when you become entitled to elect COBRA continuation coverage, when your COBRA continuation coverage ceases, if you request it before losing coverage, or if you request it up to 24 months after losing coverage. Without evidence of creditable coverage, you may be subject to a pre-existing condition exclusion for 12 months (18 months for late enrollees) after your enrollment date in your coverage. [NOTE: None of the health insurance options presently offered by RIT include a pre-existing condition exclusion.]

Prudent Actions by Plan Fiduciaries

In addition to creating rights for plan participants ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called "Fiduciaries" of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

Enforce Your Rights

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance with Your Questions

If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration.

Claim Procedures

  1. Claims for Benefits - An Employee wishing to present a claim for benefits for himself or his Dependents should obtain a claim form or forms from his Employer or Plan Administrator. The applicable section of such form or forms should be completed by (1) Employee, (2) Employer or Plan Administrator, and (3) attending Physician or Hospital. Claims will only be processed if received within a reasonable time following the date the expense to which the claim relates arises.

    Following completion, the claim form or forms should be submitted to the Plan's representative as indicated on the reverse side of the Employee's Benefit Plan Identification Card. The organization that is authorized by the Plan to process and pay claims (the Plan's Claims Administrator) will compute benefits due, and cause proper claims to be paid. Unless the Employee assigns benefits to a doctor or to a Hospital, draft(s) will be made payable to the Employee.

    A decision will be made by the Claims Administrator no more than ninety (90) days after receipt of due proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than one hundred eighty (180) days after the due proof of loss is received. The written decision will include specific reasons for the decisions and specific references to the Plan provisions on which the decision is based.

  2. Appealing Denial of Claims - If a claim for benefits is wholly or partially denied, notice of the decision shall be furnished to the Employee. This written decision will:
    1. Give the specific reason or reasons for denial;
    2. Make specific reference to the Plan provisions on which the denial is based;
    3. Provide a description of any additional information necessary to perfect the claim, if possible, and an explanation of why it is necessary; and
    4. Provide an explanation of the review procedure.

    On any denied claim an Employee or his representative may appeal to the Plan Administrator for a full and fair review. The claimant may:

    1. Request a review upon written application within sixty (60) days of receipt of claim denial;
    2. Review pertinent documents; and
    3. Submit issues and comments in writing.

A decision will be made by the Plan Administrator no more than sixty (60) days after receipt of the request for review, except in special circumstances (such as the need to hold a hearing), but in no case more than one hundred twenty (120) days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based.

Additional information about claims submitted and review procedures may be obtained by contacting the Plan Administrator.

If you have any questions about your Plan, you should contact the Human Resources Department. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest Area Office of the U.S. Labor Management Services Administration, Department of Labor.

Additional Information

Employer
Rochester Institute of Technology

Employer Identification Number
16-0743140

Plan Sponsor
Rochester Institute of Technology
8 Lomb Memorial Drive
Rochester, NY 14623-5604

Plan Administrator
Rochester Institute of Technology
8 Lomb Memorial Drive
Rochester, NY 14623-5604

Business Telephone Number
(585) 475-2424 (voice)

Agent for Service of Legal Process
Associate Director of Human Resources, Benefits, Health and Wellness
Rochester Institute of Technology
8 Lomb Memorial Drive
Rochester, NY 14623-5604