OSU trustees approve staff severance program

COLUMBUS -- The Ohio State University Board of Trustees at its Friday (3/1) meeting approved a staff severance program proposed by the Office of Human Resources. The policy, which goes into effect immediately, provides severance pay to eligible employees for a base of two weeks plus 1 1/2 weeks for each completed year of continuous service, up to a maximum of 26 weeks.

“Adopting a formal severance program will ensure consistent economic support for all eligible staff and assist everyone concerned with a speedier transition process,” said Larry M. Lewellen, associate vice president for human resources.

Traditionally, as the informal mechanism for supporting staff whose positions were abolished, Ohio State has provided termination notice prior to an employee’s final work date based on years of service.

Regular unclassified staff who are involuntarily terminated due to reduction in force or through involuntary job abolishment are eligible for the severance program. Regular classified civil service staff who are involuntarily terminated due to job abolishment or who volunteer to terminate rather than exercise bumping rights also are eligible.

Seasonal employees, staff with appointments funded by external grants and contracts and employees who are terminated for performance or other appropriate reasons will not be eligible.

The plan includes the provision of health care benefits and retirement benefits, subject to retirement system and IRS regulations, for the same duration as the severance period. Severance and benefits will be discontinued when the maximum benefit is achieved or if the individual gains other employment.

“Units are given the discretion to divide the total weeks of notice and severance pay in ways that best meet their business needs. However, working notice may not exceed two-thirds of the total weeks of severance benefits, unless agreed to by the staff member,” Lewellen said.

The amount of severance pay will be determined by an individual’s base pay and will reflect all applicable deductions, including taxes and benefits. Employing departments will be responsible for the payment costs.

“The terms of this severance package are very competitive with the packages currently offered by many local companies and better than many of the academic institutions Ohio State is benchmarked against,” Lewellen said. “We believe this is an important program for an employer aspiring to achieve world-class human resource practices and desiring to communicate positive values to staff.”

The Office of Human Resources will be conducting training sessions about the severance program for managers, supervisors and human resource professionals. Although the sessions are voluntary, Human Resources is encouraging colleges and units to make attendance mandatory, Lewellen said. “We want to ensure that staff members receive fair and equitable treatment, and that this transition process is humane and respectful,” he said.

University Health System

The university health system is also implementing a severance program. The plan, similar to the university staff program, primarily differs in that eligible employees are entitled to one week of severance for each completed year of continuous service with the university/university health system, up to a maximum of 25 weeks, and it requires a minimum notice period of 30 days.