Printed on: 05/21/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.

FREQUENTLY ASKED QUESTIONS

Non-Renewal Program for Academic Professional and Administrative Employees FAQ

  1. In counting the years of service for a nine-month, B-term contract, does a nine-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 (unless the employee was on an approved leave of absence or disability leave) and held an appointment percentage of 75 percent or greater for the 9-month contract.

  2. How are Leaves of Absence treated?

    All approved leaves of absence with or without salary count toward service credit.

  3. In calculating the final year of service, if the average percentage 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.

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

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

  5. 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.

  6. 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.

  7. If the employee chooses the Non-Renewal Program, when does employment end?

    The employee must elect the program and leave the University no later than the 60th calendar day following the issue date of the notice of non-renewal.

  8. Why must employees be actively at work on their last day of employment?

    The last day of work impacts many different programs and benefits, including unemployment, medical and dental benefit eligibility, and COBRA, among others. Each of these benefits may be impacted differently if employees do not work on their last scheduled day. To reduce any adverse benefit impact, the University requires employees to work their last scheduled day of employment, so that benefits may be administered correctly and consistently.

  9. If an employee accepts the program, receives the University contribution for family coverage, and has a spouse over age 65, would they need to take Medicare Part B?

    Yes, as soon as the employee terminates employment, the spouse, 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.

  10. Can 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.

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

    The department is responsible for the cost of the 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.

  12. 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 whenever the information is provided to Employee Benefits.

  13. If an employee chooses to participate in the Non-Renewal Program, can they return to work at the University at a later time?

    Yes, but not immediately. An employee who participates in the Non-Renewal Program for Academic Professional and Administrative Employees signs a Release on their last day of employment releasing all possible legal claims against the University 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.

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