2005 Arizona Revised Statutes - Revised Statutes §41-763.03  Voluntary separation program

A. The director shall establish a voluntary separation program to avoid or limit a reduction in force.

B. The director shall establish procedures for the voluntary separation program for permanent status employees in positions scheduled for elimination due to a reduction in force or in the same job classification in the same agency as positions scheduled for elimination due to a reduction in force. The procedures shall provide for the development of a specific program in response to each reduction in force. The benefits, as described in subsections C and D, to be provided shall be on an equal basis for all employees participating in the specific program. The director of an agency in which a reduction in force has been announced shall submit a voluntary separation program proposal to the director. The proposal shall specify the duration of the program and the benefits to be provided to each voluntarily separating employee up to the maximum number of employees, by job classification, included in the reduction in force. The proposal may limit the amount and duration of benefits based on the availability of funding. Upon submission, the director shall review the proposal, make any modifications deemed appropriate to ensure fairness and that the program is consistent with this section. Upon approval of the director, the program shall be available.

C. The procedures shall provide for severance compensation based on an employee's length of state employment, on a pro rata basis, up to one week of pay at the employee's current weekly salary for each year of service. If sufficient funding is not available, the director of an agency may offer lesser amounts of severance compensation.

D. The procedures shall provide for participating employees to remain eligible for shared premium payments for health, dental and life insurance programs in which they were enrolled at the time of separation, for up to six months after separation. Employees are not eligible to receive benefits under this section if they retire, or if they accept employment and are offered an employer sponsored insurance program. The time period under the consolidated omnibus budget reconciliation act of 1985 (P.L. 99-272; 100 Stat. 82) for a participating employee begins on the cessation of any benefits under this subsection. If sufficient funding is not available, the director may offer shorter terms of shared premium payments.

E. An employee who returns to state service or who applies for retirement or early retirement within six months after participating in the voluntary separation program shall refund to this state any monies the employee has received pursuant to this section.