25 NCAC 01D .2704         Amount and method of payments for severance

(a)  In accordance with G.S. 126-8.5, severance salary continuation shall be based on total State service as defined in Rule .0112 of this Subchapter and supplemented by an age adjustment factor as follows:

(1)           Amount of Severance Salary Continuation:

Years of Service                                                                   Payment

Less than 1 year                                                                   2 weeks

1 but less than 2 years                                                        1 month

2 but less than 5 years                                                        1 month

5 but less than 10 years                                                      2 months

10 but less than 20 years                                                    3 months

20 or more years                                                                  4 months

(2)           An employee qualifies for the age adjustment factor at 40 years of age.  To compute the amount of the adjustment, 2.5 percent of the annual base salary shall be added for each full year over 39 years of age. However, the total age adjustment factor payment shall be limited by the service payment and cannot exceed the total service payment.

(b)  Severance salary continuation shall be paid on a pay period basis.

(c)  Any period covered by severance salary continuation shall not be credited as a period of State service.

(d)  If an employee dies while receiving severance salary continuation, the balance of the severance salary continuation shall be made to the deceased employee's death benefit beneficiary as designated with the Teachers' and State Employees' Retirement System in a lump sum payment.

History Note:        Authority G.S. 126-4(10); 126-8.5;

Eff. February 1, 2016.