Health Benefits Impact for Employees Reducing Hours or Months per Year
For those who intend to remain in their roles at reduced hours, the College will maintain their current health premium costs through December 31, 2010, assuming the employee does not change health plans. To be eligible for the benefits transition support, reduction in hours must take place by June 30, 2010. Beginning on January 1, 2011, the employee will be responsible for the actual, adjusted health premium costs associated with the health plan elected, hours worked, and pay rate.
Costs for Reduction in Months Worked:
- During your hiatus (unpaid leave), you may continue your benefits and be billed on a monthly basis or you may cancel them. Please note: The College will not contribute toward your medical or life insurance during this time period. During your hiatus, if you continue your benefits, you are responsible for the full cost of your premiums each month; you cannot amortize your costs for this period over the remainder of the year. Upon your return to work, you have the option of reinstating any benefits that you had before your hiatus.
- Prior to your departure, you will need to complete an Unpaid Leave form.
Impact on pay:
- Employees whose hours are reduced will be paid according to their new hours. Hourly paid (non-exempt) employees are paid for hours worked. Salaried (exempt) employees are paid the reduced salary based on the new regular hours, whether actual hours worked go up or down. Other benefits or program participation connected to hours, salary, or FTE will be adjusted accordingly.
Work Hours Related to Health Insurance Credits and Costs:
- Health premium cost sharing is based on both an employee's projected annual salary and FTE (Full Time Equivalent, based upon projected working hours). Employees working at least 37.5 hours per week are considered a 1.0 FTE. Employees working less than 37.5 hours receive a prorated benefit credit based on both projected annual salary and actual FTE. Therefore, employees who are less than 1.0 FTE will pay more for their health premiums than employees with the same salary who are a 1.0 FTE.
- The reduction in your hours does not change your employment status. Regular status is defined as an employee hired into or occupying a position that is expected to last at least nine months in a continuing capacity, year after year, with a work schedule of either part time or full time. However, your hours must be at least 20 hours per week to be considered benefits-eligible.
- Personal Leave
If you are an hourly paid employee, you will continue to be granted 11 days of Personal Leave. The reduction in hours will be reflected in the amount of hours used per day. For example, a person who works 8 hours a day would have 88 hours of Personal Leave (8 hrs x 11 days) and a person who works 6 hours a day would have 66 hours of Personal Leave (6 hrs x 11 days).
You will begin to accrue vacation at your reduced FTE, effective the date of your change in hours.