How to Request Severance and Settlement Pay


OVERVIEW

Severance Pay 

Severance is payment based on years of service that is provided to a regular status employee who has not elected recall or preference for reemployment.  For the purposes of severance pay, one week is equal to five workdays.

1. Process the Involuntary Termination with the applicable Reason Code or the reduction of time in PayPath, if applicable

And process the appropriate Payroll Request:

For a terminating employee, process a Final Pay request:

  • If the pay will be off-cycle, include all earnings and leave usage for the final pay period
  • Enter Severance pay on the Earnings tab using Earn Code = ITS (dollar amount); and/or
  • Enter Pay In Lieu of Notice on Earnings tab using Earn Code = ITP (dollar amount) 
    Calculating Pay In Lieu of Notice: Daily Rate x FTE x # or workdays in lieu
  • Refer to the job aids for requesting Final Pay for detailed system steps

If the employee is remaining active, process an Off-Cycle Pay Request:

  • Reason = Legal (Severance, Court Order)
  • Enter Severance pay on the Earnings tab using Earn Code = ITS (dollar amount)
  • Attach a copy of the SAGR pages showing the name of the employee and the severance payment amount
  • Refer to the job aids for requesting Off-Cycle Pay for detailed system steps

2. Submit an inquiry to UCPC to inform them of the Severance; be sure to include:

  • Attachment of the applicable severance agreement sections
  • The Final Pay or Off-Cycle Payroll Request transaction number
  • Any applicable information not noted in the agreement

Note: To ensure inquiry routes to the Settlement Coordinator, in the What can UCPath assist you with? field, enter Severance Payment

Note: UCPath Center implemented a temporary solution for permanent layoff final pay processing available to use through 7/31/2026 only. For additional guidance on processing a mass layoff for 10 or more employees, please submit an Employee Center case with subject line: Mass Layoff

 

Settlement Pay

A settlement agreement is a legal agreement which spells out terms of a settlement between the University of California and an employee. Settlement agreements may include but are not limited to: 

1. Process the Involuntary Termination with the applicable Reason Code or the reduction of time in PayPath, if applicable

And process the appropriate Payroll Request:

For a terminating employee, process a Final Pay request:

  • If the pay will be off-cycle, include all earnings and leave usage for the final pay period
  • Enter Severance pay on the Earnings tab using Earn Code = SET (dollar amount)
  • Refer to the job aids for requesting Final Pay for detailed system steps

If the employee is remaining active, process an Off-Cycle Pay Request:

  • Reason = Legal (Severance, Court Order)
  • Enter Settlement pay on Earnings tab using Earn Code = SET (dollar amount)
  • Attach a copy of the SAGR pages showing the name of the employee and the settlement payment amount
  • Refer to the job aids for requesting Off-Cycle Pay for detailed system steps

Note: In the Initiator Comments, include the method of payment as specified in the SAGR, i.e. direct deposit or paper check

2. Submit an inquiry to UCPC to inform them of the Settlement; be sure to include:

  • Attachment of the applicable settlement agreement sections
  • The Final Pay or Off-Cycle Payroll Request transaction number
  • Any applicable information not noted in the agreement

Note: To ensure inquiry routes to the Settlement Coordinator, in the What can UCPath assist you with? field, enter Settlement Payment

 

Intended Audience

UCPath transactor 

WHAT TO DO AFTER

For questions regarding payment transactions, email ucpath@ucsd.edu which will generate an inquiry to the Time & Pay Advisory and Escalation Services team for assistance. 

 For more general information on Severance and Settlement Payments, outside of payment processing, contact Employee Relations by submitting a case in the Employee Center. 

 

IF YOU NEED ASSISTANCE

For Campus employees: If you still have questions or need additional assistance, please submit a request via the General Inquiry Form in the Employee Center.