SMU’s HR operating procedures for reorganization will be used to assist those in positions affected by the Organization Design Initiative. The components of the severance package are as follows:
Severance Pay Formula
a. One (1) week for each completed year of service. Minimum of eight weeks.
b. Lump sum is the default payment method.
Taxes – Severance pay is taxable income to the employee, and all applicable taxes will be withheld.
Payment of COBRA premiums - Full payment for COBRA medical and dental coverage is made by SMU for three (3) months after separation date. Employee will be able to elect COBRA coverage beyond the three-month period for medical and dental insurance.
Accrued and unused vacation - Employees separated from employment as a result of Reduction in Force will be eligible to receive the difference between the maximum amount of vacation days allowed by policy and whatever remaining accrued balance exists. For example, if you are eligible for 28 vacation days a year and have only used 8, you will receive salary for the 20 unused vacation days. Unused sick time is not eligible for reimbursement.
Tuition benefits - Employees, spouses, or dependents currently enrolled or scheduled for enrollment by the fall semester will be eligible to continue receiving tuition benefits for up to five (5) years post matriculation or until graduation, whichever is sooner. The normal terms of the Tuition Benefits Policy (9.28) apply. Tuition benefits are subject to FICA and withholding taxes.
SMU Retirement Plan contribution (RMT – 8 or 10% after tax) - Employees participating in the SMU Retirement Plan who are fully vested at the time of separation from employment as a result of Reduction in Force will receive the 8 or 10% SMU contribution on the severance pay and vacation earnings. SMU¹s retirement contribution will be in a cash amount. Such sums are subject to FICA and withholding taxes.
Priority applicant status - Priority applicant status will be in effect for six (6) months from the date of separation. Hiring managers will receive resumes of priority applicants who apply for and meet the qualifications for their open positions and have left in good standing. They are encouraged to interview these candidates; however, priority status does not guarantee an interview.
Rehire bridge of seniority - Employees rehired by SMU within one (1) year after being separated from employment as a result of Reduction in Force will be eligible to regain their original service date for purposes of vacation accrual, retirement plan vesting, and any other service-related benefits.
Outplacement services - Outplacement services are provided by Right and Associates. Services include but are not limited to resume development, interviewing skills, networking support, research of prospective employers, and more.