STATE OF NEW YORK

EXECUTIVE DEPARTMENT
DIVISION OF THE BUDGET
STATE CAPITOL
ALBANY, NEW YORK 12224

David A. Paterson Robert L. Megna

Governor Director ofthe Budget

November 18, 2009

Dear Agency Commissioners:

The Voluntary Severance Program ended on November 11, 2009. It has come
to our attention that thousands· of employees expressed an interest in participating in
.the program, but certain agencies chose not to accept these employees into the
program. As you are aware, the State continues to face serious fiscal challenges. To
address this situation, the Governor has instructed agencies to aggressively offer
severances to reduce the State workforce and maximize savings which will assist with
closing the 2010-11 budget gap. Any additional personal service savings realized
through this final extension will be credited to agencies' 201 O~ 11 gap reduction target.

Consistent with the Governor's directive, the Severance Program will be

extended through January 20, 2010. Employees who elect to retire under this .program
will need to file applications with their retirement system no later than December 22,
2009~Under this extended program, to be called the Phase II Severance Program, all
of the existing eligibility criteria and program provisions otherwise referenced in Budget
Bulletin 0-1125 (except for the employee separation date) will remain in effect. Please
see Attachment A for specific policy guidelines.

Agencies should make every effort to increase the utilization of the Severance
Program. Accordingly, you should recanvass·your employees for interest in the
program and offer severances to as many employees'as feasible, including some of
those who were denied seVerances in the first phase of the program.

Please contact your respective budget examiner with any questions you may
have as you implement the Phase II Severance Program. Thank you for your continued
efforts to reduce spending and streamline the workforce.

Sincerely,

/U-t-e-td~
Robert L. Megna

Attachments
 Attachment A

Policy Guidelines of Phase II Severance Program

• Severance payments will only be available to CSEA, PEF and M/C employees
(unless other unions agree to participate by executing a MOU with the State) and
participation will be limited to Executive Branch agencies.

• To be eligible, an employee must have been in active, full-time annual-salaried

. service in a nlon-federally funded position on July 1, 2009 and at the time they
elect to participate in the Program.. HourJy and non-annual salaried employees
are not eligib1e to participate in the Phase II Severance Program. Additionally;
employees working under Section 211 or Section 212 of the Retirement and
Social Security Law are n'ot eligible to participate in the Phase II Severance
Progrnm. . '

• All CSEA and PEF employees to whom the severance is offered and accepted
must sign an Irrevocable Letter of Voluntary Resignation, in the form provided in
Attachment B, as part of their acceptance.. For M/C employees to participate in
the severance, they must sign an Irrevocable Letter of Resignation in the form
provided in Attachment C.

• Employees must officially resign and be off the State payroll no later than
the close of business, January 20,2010. If an employee is eligible for
retirement, and chooses to retire, a retirement application with the
appropriate retirement system must be filed at least 30 days prior to the
- date (»f retirement but in no case later than December 22, 2009.

• Payment of the $20,000 severance will be subject to final confirmation by the

agency that $uch employee has in fact separated from the State's employment.
If such emplo)yee is eligible for retirement, and chooses to retire, confirmation
should be provided from the New York State and Local Retirement System
(NYSLRS) on'any other applicable pension system.

• The severance payment will notbe used in the calculation of any retirement
benefit calculated by NYSLRS, or other applicable retirement system, and shall
be subject to .all usual and customary taxes and withholdings. .

• All employees who participate,in this program will be restricted from re-hire by
Executive Branch agencies of the State, including public authorities as defined by
Section 2(1) tOf Chapter 766 of the Laws of New York, 2005, for a period of fiVe
years fromtrne effective date of resignation (restricted period).

After employees have been re-surveyed for interest in participation, agencies

must submit a Phase II Severance Plan to the DiVision ofthe Budget (DOB) and the
Governor's Office orr Employee Relations (GOER) no later than November 30,2009.
As of the date on this letter, there should b,e no further amendments to the severance
plans previously submitted and approved by DOB. All employees participating under
the revised separation deadlines must be listed on the Phase II plans, even if an
employee was included on the initial plan and did not accept or was denied the
severance. The Phase II Plan should provide the information outlined in Attachment D..

Selection of eligible employees niust be made on the basis of whether the

employee meets the aforementioned eligibility crit~ria. In the event that the level of
interest exceeds the amount of severances that can be prudently offered, the selection
should be made oli the basis of seniority within job titles, DOB will approve Phase II
Severance Plans and forward such approved Plans to agencies and the Office of the .
State Comptroller for record-keeping and implementation purposes. Agencies should
immediately inform employees of approval upon receipt of su'ch Plans. Participating
employees who elect to retire should contact the applicable retirement system·for a
projection of their retirement benefits. ALL EMPLOYEES .GRANTED A SEVERANCE
MUST BE OFF THE STATE'S PAYROLL NO LATER THAN CLOSE OF BUSINESS
JANUARY 20, 2010.

Questions on the Severance Program should be directed to your budget

examiner. All correspondence between agencies and DOB and GOER required by this
letter should be addressed concurreiltly to:

Mr. Robert E. Brondi, Chief Budget Examiner

Division of the Budget
State Capitol, Room 117 .
Albany, NY 12224
Bob.Brondi@budget.state.ny.us

and

Mr. John V. Currier, Deputy Director

Governor's Office of Employee Relations
Agency Building 2, Suite 1201
Albany, NY 12223-1250
jcurrier@goer.state.ny.us .

cc:

[Chief Budget Examiner of DOB]

Division of the Budget
State Capitol, Room _ _
.Albany, NY 12224
Email address
 ATTACHMENT B

IRREVOCABLE LETTER OF VOLUNTARY RESIGNATION

Pursuant to the terms and conditions of the Voluntary Severance Program offered by
the State of New York pursuant to the Memorandum of Understanding between the State and
CSEA/PEF dated July 22, 2009, please accept this as an Irrevocable Letter of Voluntary
Resignation, effective 'at the close of business on , 20_.. {EMPLOYEE MUST
INSERT DATE NO LATER THAN Janu_ary lO, l010 AND NO EARLIER THAN DATE THAT THE
DIVISION OF THE BUDGET HAS APPROVED THE AGENCY PHASE II SEVERANCE PLAN}

I. understand that my resignation will be irrevocable as of the close of business on the

effective date specified above. If I wish to resc:ind this letter of resignation before the effective
date specified above, I understand that written notice to that effect must be received by
_ _ _ _ _ {AGENCY TO INSERT NAME} at {INSERT AGENCY ADDRESS} prior to the effective
date and, if applicable, a "Withdrawal of Application for Service Retirement" (Form RS6354)
must be timely filed with the New York State and Local Retirement System (NYSLRS) prior to the
effective date of retirement or, if another retirement system is applicable, a withdrawal of
application for service retirement is timely filed with such retirement system on a form so
designated by such system.

I understand and agree that my employment with the State must actually end in order
to receive the Voluntary Severance Program payment. I understand that such Voluntary
Severance Program payment shall be subject to usual and customary taxes and wlthholdings for
such payment. I further understand that such Voluntary Severance Program payment shall not
be used in the calculation of any retirement benefit calculated by NYSLRS, or other applicable
retirement system. I also understand that as a condition of accepting the Voluntary Severance
Program payment~ I agree that I cannot and will not bere-employed by the State of New York
for a period o,f five years after the effective d~te of my voluntary resignation. I understand that,
if I am re-employed by the State at any time before five years after my voluntary resignation
date has elapsed, I will be required to refund in full the Voluntary Severance Program payment.
I understand that if I do not remit a refund in full to the State that the State can and will recover
the Voluntary Severance Program payment by set-off agai,nst salary received in my re-employed
position' or by other lawful means at its disposal. I understand and accept that for purposes of
theVoluntary Severance Program re-employment with the State means any employment by
the Executive Branch agencies including public authorities as defined by section 2(1) of Chapter
766 of the Laws of New York, 2005.

Further, I understand that if I have a New York State Deferred Compensation Plan
, account, no portion of the Voluntary Severance Program payment shall be contributed to my
account. I understand that, if applicable, in order for me to apply for retirement and to begin
receiving such benefits, I will file a retirement application with the NYSLRS between 30 and 90
days before the effective date of my reti~ement, pursuant to the Retirement and Social Security
Law. IfNySLRS is not applicable to me, I understand that I must comply with all requirements
of the retirement system applicable to me to apply for retirement and begin receiving
retirement benefits.
 ATIACHMENTB

1hereby certify that/ to the best of my knowledge:

_. 1am eligible to receive retirement benefits and elect to retire.

1understand that 1must file a retirement application with the appropriate retirement
system at least 30 days prior to my date of retirement and no later than December 22/ 2009
and will contact that retirement system for a projection of retirement benefits available to me.

_ I am eligible to receive retirement benefits but elect to resign and not apply for
retirement benefits at this time.

_ I am not eligible to receive retirement benefits and elect to resign.

1understand that the Voluntary Severance Program payment will be disbursed as one
$20/000 lump sum payment/ less usual and customary taxes and withholdings/ as soon as
practicable
. . after my actual separation
. date.

By signing below/I indicate my agreement to the terms of the Voluntary Severance

Program payment.
 ATTACHMENT C

IRREVOCABLE LETTER OF VOLUNTARY RESIGNATION

Pursuant to the terms and conditions of the Voluntary Severance Program offered by
the State of New York, please accept this as an Irrevocable L!=!tter of Voluntary Resignation,
effective at the close of business on .,20_. {EMPLOYEE MUST INSERT DATE
NO LATER THAI\! January 20,2010 AND NO EARLIER THAN DATE THAT THE DIVISION OF THE
BUDGET HAS APPROVED THE AGENCY PHASE II SEVERANCE PLAN}

I understand that my resignation will be irrevocable as of the close of business on the

effective .date specified above. If I wish to rescind. this letter of resignation before the effective
date specified above, I understand that written notice to that effect must be received by
_ _ _ _ {AGENCY TO INSERT NAME} at {INSERT AGENCY ADDRESS} prior to the effective
date and, if applicable, a "Withdrawal of Application for Service Retirel.Tlent" (Form RS6354)
must be timely filed with the New York State a.nd Local Retirement System (NYSLRS) prior to the
a
effective date of retirement or, if another retireme·nt system isapplicable, withdrawal of
application for service retirement is timely filed with such retirement system on a form so
designated by such system.

I understand and agree that my employment with the State must actually end, in order
to receive the Voluntary Severance Program payment. I understand that such Voluntary
Severance Program payment shall be subject to usual and customary taxes and withholdings for
such payment. I further understand that sLich Voluntary Severance Program payment shall not
be used in the calculation of any retirement benefit calculated by NYSLRS, or other applicable
retirement system. I also understand that as a condition of accepting the Voluntary Severance
Program payment, I agree that I cannot and will not be re-~mployed by the State of New York
,,Jor a period of five years after the effective date of my voluntary resignation. I understand that
if I am re-employed by the State at any time before five years after my voluntary resignation
date has elapsed, I will be required to refund in full the Voluntary Severance Program payment.
I understand that if I do not remit a refund in full to the State that the State can and will recover
the Voluntary Severance Program payment by set-off against salary received in my re-employed
position or by other lawful means at its disposal. I understand and accept thatfor purposes of
the Voluntary Severance Program re-employment with the State means any employment by
the Executive Branch agencies including public authorities as defined by section 2(1) of Chapter
766 of the Laws of New York, 2005.

Further, I understand that if I have a New York State Deferred Compensation Plan
account, no portion of the Voluntary Severance Program payment shall be contributed to my
account. I understand that, if applicable, in order for me to apply for retirement and to begin
receiving such benefits, I will file a retirement application with the NYSLRS between 30 arid 90
days before the effectiv~ date of my retirement, pursuant to the Retirement and Social Security
Law. If NYSLRSis not applicable to me, r understand that I must comply with all requirements
of the retirement system applicable to me to apply for retirement and begin receiving
retirement benefits.
 ATIACHMENTC

I hereby certify that, to the best ofmy knowledge:

_ I am eligible to receive retirement benefits and elect to retire.

I understand that I must file a retirement application with the appropriate retirement
system at least 30 days prior to my date of retirement and no later than December 22, 2009
and will contact tha~ retirement system for a projection of retirement benefits available to me.

_ I am eligible to receive retirement benefits but elect to resign and not apply for
retirement benefits at this time. \

_ I am not eligible to'receive retirement benefits and elect to resign.

I understand that the Voluntary Severance Program payment will be disbursed as one
$20,000 lump sum payment, less usual and customary taxes and withholdings, as soon as
practicable after my actual separation date.

By signing below, I indicate my agreement to the terms of the Voluntary Severance

Program payment.
 ADACHMENT D

PHASE II SEVERANCE PLAN

Agency Name:
Agency Code:
Agency Contact:
Date:
..
Intent to 2009·10 PS 2010·11 PS
Title/SG Name Retire (YIN) Location Effective Date (CostVSavings Savings

Title A, SG18 John Doe Y Albany 1/20/2010 ($10,000) $60,000

G:\LR\Severance\Phase II\Attachment D.xlsx