Layoff Severance Program for Civil Service and Union-Represented Staff Employees FAQ

1. How are the years of service counted for a nine-month, B-term contract? Does a 9-month contract year equate to one full week of pay?

   Yes, the year can be counted towards years of service if the employee worked at least 1,560 hours and held an appointment percentage of 75 percent or greater for a term of 9 months or more.

2. In calculating the final year of service, if percentage worked is over 75 percent, does the employee need to be employed on the anniversary date to count?

   Yes, even if the employee has worked over 75 percent time in the final year, they must be employed on the anniversary date for the time to count as a year of service.

3. How is the University contribution for medical/dental subsidy determined?

   It is based on (1) coverage level (employee-only or family) on the last day of employment and (2) work location and permanent residence on the last day of employment.

4. Can a former employee add family coverage while the University is subsidizing coverage after employment ends?

   Yes, family coverage can be added while the employee is covered by this program, but the former employee would pay the entire cost of the added family coverage. Adding family coverage can occur either during open enrollment or if there is a change in the former employee's family status.

5. Is there an open enrollment period for former employees?

   Yes, the former employee will receive open enrollment materials from Employee Benefits with information on options.

6. What is the timeframe for electing the Layoff Severance Program and if the employee chooses the program, when does employment end?

   See Program Participation, above.

7. Can the Optional Retirement Plan or 457 Deferred Compensation plan contributions be taken from the lump sum and vacation pay out?

   Vacation payout amounts can be contributed to the Optional Retirement Plan or 457 Deferred Compensation Plan (subject to IRS limits), but severance amounts, including lump-sum payments, cannot. The employee should contact a Benefits Counselor as early as possible to make these arrangements.

8. What is the cost to the department or unit?

   The department is responsible for the cost of lump-sum payment. The cost of the medical and dental benefits will be charged to the fringe pool and included as part of the total cost used in determining the annual fringe rate.

9. If an employee chooses to participate in the Layoff Severance Program, can they come back to work at the University at a later time?

   Yes, but not immediately. An employee who participates in the layoff severance program signs a Release on their last day of employment releasing all possible claims against the University and agreeing that, in consideration for receiving the money and benefits under this program, the former employee will not reapply for or be rehired for University employment for a period equal to the number of weeks of severance pay received.

10. If an employee accepts the program, receives the University contribution for family coverage, and has a spouse/registered same-sex domestic partner over age 65, would they need to take Medicare Part B?

    Yes, as soon as the employee terminates employment, the spouse/registered same-sex domestic partner, and the employee, if over age 65, would need to enroll in Medicare Part B. Also, they would need to enroll in Medicare Part B if they turn age 65 during the time they are covered under this program. Medicare would become the Primary Coverage and the UPlan would be secondary. The employee is responsible for communicating Medicare participation to providers and the Claims Administrator. Contact an Employee Benefits counselor with questions on this issue.

11. Who is responsible for entering the lump sum into the HRMS system?

    Employee Benefits enters the information into the HRMS system to pay out the lump sum on the pay period following the last regular paycheck. Vacation is paid out with the lump sum payment.