Beginning July 1, 2025, UCSF is launching a new program to reimburse severance payments for separating employees who were previously supported by sponsored awards.
Purpose:
This program was developed to avoid the “last person standing” problem for contracts and grants when layoffs are necessary. In many cases, the grants and contracts do not have sufficient funding to cover severance payments, and departments must identify other sources of funds. This program will socialize the cost of severance for employees previously funded from sponsored awards across all fund sources.
Eligibility:
- The program is effective for indefinite layoffs with termination/reduction in time dates occurring 7/1/2025 or later.
- The program applies to full and partial severance associated with reductions in time.
- The program applies to all employee classifications where severance pay is applicable.
- The program applies to all indefinite layoffs and reductions in time, regardless of cause/reason.
- To be eligible for reimbursement, the employee being paid severance must have been funded by sponsored awards (excluding ZSFG patient care contracts) for at least 20% of salary for the prior year (measured specifically as 20% of their total salary over the prior year. This includes, at least six individual months at 20% or more). If the individual was on an extended leave during the prior 12 months, additional historical months should be included in the calculation.
- If eligible based on fund source (#5), the total amount of severance paid will be reimbursed, regardless of the percentage of time the employee was funded by sponsored awards.
Severance Policies:
- Professional & Support Staff Career Positions: PPSM-60 (Section J)
- Managers and Senior Professionals (MSP): PPSM-64 (Section E)
- Collective Bargaining Agreements
Process:
- Labor and Employee Relations (LER) will determine the amount of severance.
- Departments will determine if the severance is eligible for reimbursement based on the salary sources for the prior year.
- Departments coordinate with their LER representative to record severance payments for eligible employees using their regular DeptID along with Fund 5018 and Project 2019623. The function code should correspond to the mission that the individual supported.
By using this Project ID, the department is verifying that the impacted employee meets the sponsored award criteria of at least 20% on awards over the last 12 months and at least six individual months at 20% or more). - Monthly, Budget & Resource Management (BRM) will review transactions on the Project ID and reimburse the department chartstring that initially paid the severance via a funds transfer in the general ledger (Transfer account 74000). The severance expense will continue to appear in the DPE reports and the severance credit will appear in the general ledger only.
- Quarterly, BRM will submit claims to the UCPATH CBR pool for credit back the central severance Project ID.
- Annually, BRM will audit severance payments to ensure employees covered by the program met the 20% sponsored award funding criteria.
Questions may be directed to [email protected] or [email protected].