ARTICLE II SEPARATION ALLOWANCE

(1) Prior to May 1, 1991, the Carrier will solicit for a period of twenty (20) days voluntary separation requests from eligible trainmen in the territory. The amount of the separation allowance payable will be an amount equal to the greater of the trainman's earnings on the seniority district during either the 1989 or 1990 calendar years, subject to all applicable taxes. There will be a minimum separation allowance (s\ibject to all applicable taxes) based on the following criteria:

0-5 years in train service $35,000.00 Over 5 years in train service $50,000.00

(2) Under this Article II, a trainman eligible for a separation allowance must be an active trainman holding seniority and who has continuously performed service as a trainman on the territory from February 15, 1991, until the effective date of this Agreement.

(3) The Carrier will accept an unlimited number of separation requests from eligible trainmen with over 5 years in train service. The Carrier will determine the number of separation requests it shall accept from trainmen with less than 5 years in train service based on the requirements of the service. Seniority shall govern in the acceptance of separation requests.

(4) Eligible trainmen applying for a separation allowance may elect to receive the allowance in accordance with the options set forth on the prescribed form, exhibited to this Agreement as Attachment I.

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(5) (a) A trainman's time lost for union business will be included in computing earnings. The Organization will furnish the Carrier the necessary information to determine a trainman is time lost for union business.

(b) The following formula will be used for qualified trainmen who were absent due to full time union work, discharged and reinstated with pay for time lost and/or valid medical/health leave: (1) If a trainman worked three months or more during the year in question, the trainman's work history will be used to determine the test period earnings; (2) If the trainman worked less than three months, the average test period earnings of the two trainmen immediately senior and the two immediately junior to the trainman working in the same service at the trainman's location will be used to determine the test period earnings; (3) It is understood that absence due to personal business is not applicable for purposes of this paragraph.

NOTE: The Separation Allowance Program under the Article will be available to a trainman who is on a valid medical leave of absence and subsequently returned to service or who is discharged and is subsequently reinstated and returned to service, provided that the trainman was. working on this territory immediately prior to the medical leave and/or discharge and returned to the territory immediately upon return to service.