AFSCME Local 328
4006 Barbur Blvd, Portland, OR 97239
APPENDIX F Severance Program
Purpose. The severance program described herein is designed to provide a one-time benefit to employees for financial support during a period of employment transition.
To be eligible for severance benefits, an employee must be:
Regularly scheduled to work at least 20 hours per week and a .5 FTE or more;
Involuntarily terminated due to program closure, position elimination or reorganization; and
Notified by Human Resources of eligibility for severance benefits.
Severance benefits are not available to employees who:
Are working in temporary, limited duration, flex or relief positions;
Are in their probationary period;
Resign from their employment position*; or
Are given notice of termination for reasons other than those identified above.
Although the severance program is not designed as a voluntary program, managers may, at their discretion, offer the severance benefits described below to an employee who volunteers to be laid off, provided the employee is otherwise eligible.
Calculation of severance payment. Severance pay will be based on length of continuous service with the Employer and will be calculated using base pay only. For purposes of this paragraph, length of continuous service is defined as continuous, uninterrupted employment with the Employer, except for breaks of service of 90 days or less. Base pay is defined as the regular rate of pay as of the date of notice of layoff excluding overtime, bonuses, shift differential, incentive pay and the value of any employee benefits. If the position being eliminated constitutes only a portion of the employee’s FTE, the severance pay will be based on the affected FTE portion only. Severance will be paid in a lump sum payment and is subject to applicable taxes and other statutory withholdings.
Separation agreement. Employees who wish to accept severance benefits will be required to sign a separation agreement prior to remittance of any severance benefits and to wait for the expiration of any potential revocation window. The separation agreement will include, but will not be limited to, a waiver and release of claims against the Employer, an agreement not to solicit the Employer’s employees, and an agreement to repay a pro-rata amount of severance benefits received if the employee is rehired by the Employer.
Waiver of other contract rights. Any employee who accepts severance benefits in accordance with this program automatically waives all layoff and placement rights provided for under Article 19 of the Agreement.
Pay. Employees shall receive four (4) weeks of base pay for less than 5 years of service, plus one (1) additional week of base pay for each fully completed year of service beyond 4 years. (For example, an employee who has worked 8 years and 4 months upon termination will receive payment for 8 fully completed years of service.)
The maximum pay benefit under this provision shall be 26 weeks.
Severance payments will be eligible for pension contributions.
Any payments made for COBRA or other health and welfare benefits will not be eligible for pension contributions.
For retirees, completed years of service are calculated from the rehire date following retirement.
Continuation of benefits. For employees who timely select continuation of medical and dental insurance coverage under COBRA, the Employer will continue to contribute toward the cost of such coverage at the same contribution level as before for the length of the severance pay period (see chart below). An employee may, in lieu of continuing coverage under COBRA, elect to receive the cash equivalent of the COBRA subsidy amount.
Contracting severance benefit. Any regular non-probationary employee, regardless of FTE status, who is displaced as a result of contracting or subcontracting bargaining unit work as described in Section 6.13 of the Agreement and who otherwise qualifies for severance benefits under this appendix shall, in lieu of the pay provisions set forth in Paragraph D.1 above, receive severance pay as follows:
Employees with at least one (1) but less than five (5) fully completed years of service shall receive four (4) weeks of base pay.
Employees with five (5) years of service shall receive five (5) weeks of base pay.
Employees with six (6) or more years of service shall receive two (2) weeks of base pay for each fully completed year of service.
Employees with fifteen (15) or more years of service shall receive thirty (30) weeks of base pay plus three (3) weeks of base pay for each fully completed year of service beyond 15 years. (For example, an employee with 20 fully completed years of service will receive 45 weeks of base pay.)
The additional severance pay available under this Paragraph D.3 shall not affect the months of COBRA subsidy under Paragraph D.2 and the chart below.
Outplacement. Employees may access outplacement services through either the Career and Workplace Enhancement (CWE) Center or the Employee Assistance Program (EAP). The CWE Center may offer classes on career networking, resume writing and job interviewing. Employees will have access to these classes up to 60 days after termination of employment. The EAP offers, in addition to phone and web-based services, up to three face-to-face counseling sessions. All EAP services are available to employees and their dependents for 60 days after termination of employment.
Cashout. Affected employees will also be eligible for cash-out of unused vacation leave in accordance with Section 12.6 of the Agreement.
The chart below outlines the severance benefit and COBRA subsidy based on length of service:
Length of Service
Weeks of Pay
Months of COBRA Subsidy
Up to 5 years
5 to <6 years
6 to <7 years
7 to <8 years
8 to <9 years
9 to <10 years
10 to <11 years
11 to <12 years
12 to <13 years
13 to <14 years
14 to <15 years
15 to <16 years
16 to <17 years
17 to <18 years
18 to <19 years
19 to <20 years
20 to <21 years
21 to <22 years
22 to <23 years
23 to <24 years
24 to <25 years
25 to <26 years
26 years or more
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