RD85 - Special Report: Severance Benefits for State Employees


Executive Summary:
Virginia's severance policy is established by the Workforce Transition Act (WTA). Concerns regarding employees receiving more than was allowable under WTA prompted the Joint Legislative Audit and Review Commission (JLARC) to direct a comprehensive review of the Commonwealth's use of severance agreements.

Agencies generally have properly implemented the WTA, with severance payments rarely exceeding allowable amounts. Since 2002, 12 State entities have entered into a total of 23 employment contracts with senior agency personnel that include separation provisions, and 12 of these agreements have provided for up to a year or more of salary as the severance benefit.

Amendments to WTA by the 2006 General Assembly were intended to bring virtually all gubernatorial as well as other appointed positions under the provisions of the Act, and the law is now clear that most are subject to it. However, some positions are still exempt, and there remains ambiguity as to whether the new statutory language brings certain positions appointed by boards and commissions under WTA. Therefore, the General Assembly may wish to repeal and reenact WTA to clarify which positions are included or exempt.