Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 4521.4. Early severance plan

The governing body of any political subdivision or municipal authority may, by contract, agree with any employe to a voluntary early severance plan.  The voluntary early severance plan may include, but shall not be limited to, the payment of a portion of the employe's former salary for a specified period of time, the continuation of a specified level of insurance benefits, payment at a specified rate for unused vacation days, sick leave or other leave and confidential third-party counseling.  Payments under a voluntary early severance plan shall not constitute compensation under the Public School Employees' Retirement System, State Employees' Retirement System or the Pennsylvania Municipal Retirement Board, nor shall any such voluntary early severance plan include service credit for retirement purposes.