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Non-Renewal Program for Academic Professional and Administrative Employees
Last Update: March 2010
Responsible University Officer:
- Vice President for Human Resources
- Director, Retirement Programs
- Manager, Benefit Services
- See Contacts Section.
- Updated: March 2010
- Primary Contact: See Contacts Section.
Printed on: . Please go to http://policy.umn.edu for the most current version of the Policy or related document.
The Non-Renewal Program is an elective benefit program provided to academic professional and administrative (P&A) employees who have received a written non-renewal of appointment notice and who meet all the eligibility requirements as described.
To be eligible for the Non-Renewal Program, P&A (93xx, 96xx, and 97xx) employees must be non-renewed while holding a nine-month or longer appointment of not less than 75 percent in a qualifying appointment type as noted below at the time the notice is given. In addition, employees must be actively at work on their last day of employment to be eligible for the Program.
Academic Professionals in job codes 9621-9630; 97xx (except 9755, 9756, and 9757) with Appointment Type of:
(J) Multi-Year Contract;
(K) Annual Renewable Contract; or
(Z) Non-Credit Teaching/Other Professional Work
Academic Administrators in job codes 93xx; 9631-9640 with an Appointment Type of:
(J) Multi-Year Contract or
(K) Annual Renewable Contract
In addition to not meeting the specific eligibility requirements, academic employees are ineligible for participation in this program if they fall into any one of the following employee categories, classifications, or groups:
- not actively at work on the last day of employment;
- regular faculty (tenured or tenure-track);
- term faculty (contract, temporary, visiting, or adjunct);
- academic professional and administrative appointees with an appointment term of flexible hourly, summer research, lump sum only (Z), or summer session only (S);
- academic administrative staff with appointment types of (L) limited or (M) acting/interim;
- 9755 Research Specialist, 9756 Community/Clinical Preceptor, 9757 Industrial Fellow;
- individuals hired for one semester without a search under non-competitive appointments;
- 95xx employees;
- employees eligible for Phased Retirement or the Terminal Agreement;
- employees participating in another University exit program, voluntary or involuntary, to which the University contributes or has contributed monies (including the Academic Disability Program); or
- employees terminated for cause.
Benefits of this program are based on the employee's continuous service with the University. One full year of service is credited for each anniversary from the employee’s most recent date of hire through the last day of employment. This period is non-continuous if it is broken by a voluntary termination of employment - no matter how brief. For a comprehensive explanation of continuous service, refer to the Definition Section of this policy.
Under the program, a lump-sum payment is made to the employee equal to one week of pay per full year of continuous University service as defined above, up to a maximum of 52 weeks of pay. One week of pay is equal to the employee's regular hourly rate times the number of hours per week (maximum of 40) the employee was regularly scheduled to work as of the last day of employment. This payment is subject to payroll taxes. Severance pay of this type does affect unemployment benefits. The employee is instructed to contact a Minnesota WorkForce Center for more information regarding unemployment compensation.
Medical and/or dental coverage may be continued for up to eighteen months following termination of employment, but not after the last day of the month in which the employee becomes covered under another group medical plan that has no limitations or exclusions with respect to any pre-existing conditions of the employee or, for family coverage, the employee's dependents. If the employee is a federal employee with federal health benefits, this continued medical and dental coverage is not available through the University. If the employee becomes eligible for Medicare before or during the subsidized period, Medicare then becomes primary with the UPlan secondary for this individual. If a spouse or registered same-sex domestic partner is age 65 or older, the application must be made for Medicare Part B upon termination of employee's employment. Medicare then becomes primary with the UPlan secondary for this individual.
The University will contribute toward the cost of the employee's medical and/or dental coverage for the following periods:
|Full Years of Continuous Service||Period of University Contributions|
|less than 3 years||University will NOT contribute|
|3 through 4 years||University will contribute for up to 6 months|
|5 through 9 years||University will contribute for up to 12 months|
|10 years and over||University will contribute for up to 18 months|
The University contribution for this coverage will be the same as if the employee had remained employed. If the above subsidy is for less than 18 months, coverage may be continued at the employee’s own expense for the balance of up to 18 months; Employee Benefits will bill the employees directly for the unsubsidized months.
Dependent coverage may be added at the expense of the employee while covered by this program during open enrollment time or if there is a change in the employee’s family status. If medical and/or other coverages are canceled or dropped for any reason during the time that the University is subsidizing coverages, including, but not limited to, cases where employees do not make payments towards their required contributions for coverages, then the University will not be responsible for any further compensation to or on behalf of the employee in connection with these coverages.
Note: The continuation of medical and dental coverage available under COBRA (Consolidated Omnibus Budget Reconciliation Act) runs concurrently with the benefits extended under this program. See Appendix: Benefits Information Supplement, for further information on COBRA.
The University reserves the right to alter the terms of or eliminate this program.
If a P&A employee elects to participate in the Non-Renewal Program for Academic Professional and Administrative Employees, employment must be terminated on a date mutually agreed to by the employee and the responsible administrator and it must be within 60 calendar days following the issue date of the non-renewal notice. On the last day of employment, the employee must be present at the work location and not on vacation or other leave of absence.
In exchange for participating in this program, the employee waives any right to a notice period to which entitlement is held and all other claims against the University. Since qualifying for this program may result in the termination of appointment prior to the end of the employment agreement, the employee may be disqualified for unemployment compensation benefits. The employee should contact the state unemployment office for more information. As part of this program, the employee also agrees not to reapply or be rehired for University employment for a period equal to the number of weeks of severance paid, beginning on the first day of non-employment.
Individuals submitting incorrect, false, or fraudulent information will be subject to disciplinary action including revocation of the program and termination of employment, if still employed.
REASON FOR POLICY
The University chooses to recognize years of service to the University by eligible academic professional and administrative employees whose appointments are non-renewed and who elect the program set forth in this policy.
See Appendices for packet of supporting Forms/Instructions.
- Benefits Election Form (Non-Renewal Program for Academic Professional and Administrative Employees) (PDF)
- Benefits Information Supplement
- Department Checklist (Non-Renewal Program for Academic Professional and Administrative Employees)
- Employee Checklist (Non-Renewal Program for Academic Professional and Administrative Employees)
- Non-Renewal Program Agreement (Non-Renewal Program for Academic Professional and Administrative Employees) (PDF)
- Release Form (Non-Renewal Program for Academic Professional and Administrative Employees) (PDF)
The above documents are all required to implement the policy.
FREQUENTLY ASKED QUESTIONS
- Primary: Responsible administrator/supervisor
- Secondary: Local campus, college, or administrative unit HR administrator
- Other (as needed): Office of Human Resources specialist or consultant
- Minnesota Workforce Center
- Academic Year
- The combination of fall and spring semesters.
- Actively at Work
- Employees must be physically present, working to the end of their regularly scheduled day, and be in a physical and mental condition to have continued to work their full scheduled appointment for the foreseeable future. They must not be on any form of leave of absence, including, but not limited to vacation, personal leave, FMLA, or medical leave.
- Base Salary
- Appointment salary plus administrative augmentation; augmentation for an acting administrative appointment is not considered base salary.
- Continuous Service
- Service commencing on the employee’s most recent date of hire with the University in an appointment of 75 percent or greater and an appointment term of nine months or longer, and ending on the employee’s last day of employment. Continuous service may include periods of approved leaves of absence, disability, or part-time service. If, during any year, the employee (with an appointment percentage of 75 percent or greater and an appointment term of 9 months or longer) worked less than 1,560 hours, that year would not be credited, unless the employee was on an approved leave of absence or disability leave. That year or years would bridge periods of continuous service.
A student appointment in 2xxx or any of the 95xx classifications will not be credited and will be considered a break in service. Employment prior to any appointments in the 2xxx or 95xx classifications is not credited. Service credit would begin with the resumption of a qualifying appointment.
If an employee changes appointments between one employee category and another (e.g., civil service to P&A), the service will be considered continuous as long as there is no break longer than two pay periods.
- Year of Service
- One full year of service is credited for each anniversary from the employee’s most recent hire date through the last day of employment. A Year of Service will only include years in which the employee held an appointment percentage of 75 percent or greater and an appointment term of nine months or longer, worked at least 1,560 hours in the year, or was on an approved leave of absence or disability leave.
- Directs employee receiving a non-renewal of appointment notice to the policy, procedure, and appendices.
- Manages the non-renewal of appointment process for the employee.
- Enters appropriate data into the HRMS system.
- Provides timely notice to the division/department of the choice to accept the terms of the Non-Renewal Program for Academic Professional and Administrative Employees.
- Follows appropriate procedures.
- Contacts area unemployment office for more information as desired.
- Administrative Policy: Non-Renewal of Appointment for Academic Professional and Administrative Employees
- March 2010 - Clarification was made to the requirement that the employee must be actively at work on the last day of employment.
- May 2008 - Policy converted to the new University-wide format for administrative policies. Title was changed to Non-Renewal Program for Academic Professional and Administrative Employees, former Academic Staff Non-Renewal Program.
- April 2003 - (1) Minor edits to clarify language;
(2) Rule of 75 elimination effective April 30, 2003, whereby if the sum of the employee’s full years of continuous University service and age on the last day of employment was 75 or greater, then the University medical and/or dental coverage was continued until the last day of the month in which the employee became eligible for Medicare or other group coverage, whichever came first; and
(3) Requirement added whereby the employee, in exchange for participating in program, agrees to not reapply for or be rehired for University employment for a period equal to the number of weeks of severance pay received.
- February 2003 - Minor edits to clarify language.
- September 2002 - U of M Layoff/Non-Renewal Program for Civil Service/Bargaining Unit and Academic Professional and Administrative Staff was divided into two separate documents, Civil Service and Bargaining Unit Staff Layoff Severance Program and Academic Staff Non Renewal Program. Edits were made, information was updated and expanded and put in standard University-wide policy format.
- March 1994, May 1994, and March 1995
- August 1993 - U of MN Layoff/Non-Renewal Program for Civil Service and Professional & Administrative Employees
- November 1991, August 1992, and March 1993
- August 1991 - Voluntary Retirement/Health Benefits Program; Termination/Severance Program
- September 2002