| If
you experience a Reduction in Force, referred to as a "RIF"
or "layoff," you will probably have several questions
about your benefits. The information below explains how your benefits
are affected by a layoff. For additional information regarding
the University's operating policy and regulations regarding
a reduction in force, you may wish to review the Standard
Practice Guide (SPG 201.72). Staff members subject to the
terms and conditions of collective bargaining agreements
may wish to consult the specific provisions in their current
agreements dealing with a reduction in force. Any provisions
in such agreements that differ from the provisions stated
here will govern.
The HR/Payroll Service
Center can answer many of your benefit questions, or
you can meet with a Benefits Representative. Refer to
Office Locations for contact information.
Benefits
Continuation While on Layoff
To continue coverage during your layoff, you must complete and return the Benefits Layoff Election form and make payment. Your Benefits Layoff Election form will be mailed to your home once the layoff paperwork has been processed by Human Resources. If you do not receive your Benefits Layoff Election form within two weeks from the start of your layoff, contact
the HR/Payroll Service Center at 734-615-2000 or 1-866-647-7657
(toll free). The HR/Payroll
Service Center will provide you with information and instructions
on continuing your benefits, including the amounts payable
if you wish to continue coverage.
If your return to a benefits eligible position, the HRRIS Benefits Transaction Team will automatically re-enroll
you in benefits. See When You Return to
Work for more information.
The following summary indicates what happens to each of
your benefits when you go on layoff.
| Benefit
Plan |
Benefits
Options |
| Health
and Welfare Plans |
Medical
Dental
Vision
Prescription Drugs |
You
may continue coverage until the end of the 12th month
following the month the layoff became effective, provided
you remit payment of the full premium by the first
of each month for that month's coverage. If you choose
not to continue coverage, coverage stops on the last
day of the month the layoff became effective.* For
more information on participation in a managed care plan, refer to Managed Care Plans below. |
| University
Group Term Life Insurance |
Your
coverage continues (at no cost to you) for up to 12
months following the month your layoff became effective. |
Optional
Life Insurance
|
You
may continue coverage until the end of the 12th month
following the month the layoff became effective, provided
you remit payment of the full premium by the first
of each month for that month's coverage. If you choose
not to continue coverage, coverage stops on the last
day of the month the layoff became effective.* |
| Dependent
Life Insurance |
You
may continue coverage until the end of the 12th month
following the month the layoff became effective, provided
you remit payment of the full premium by the first
of each month for that month's coverage. If you choose
not to continue coverage, coverage stops on the last
day of the month the layoff became effective. |
| Expanded
and Basic Long Term Disability |
Coverage
stops on the day the layoff becomes effective. |
| Travel
Accident |
Coverage
stops on your last day actively at work before your
layoff begins. |
| Retirement
Plans |
| Basic
Retirement Plan |
You
may continue making contributions to a TIAA/CREF account
on an after-tax basis. There will be no University
contribution. Contact TIAA/CREF directly at 1-800-842-2733
for details. |
| Tax-Deferred
Supplemental Retirement Account (SRA) and 457(b) plans |
All contributions
stop with your last paycheck. Contact the investment
firm(s) directly for information on your options.
|
|
Other Benefits |
| Health
care Flexible Spending Account |
Only
expenses incurred while you are participating in the
Plan are eligible for reimbursement. You may continue
participation in the Plan by making contributions
to the account on an after-tax basis. If this is the
case, you may receive reimbursement of claims incurred
during your layoff. If participation is not continued,
your Health Care Flexible Spending Account ends at
the end of the month in which your layoff began. For
more information, refer to Health
Care Flexible Spending Account. |
| Dependent
Care Flexible Spending Account |
Your
participation in the Dependent Care Flexible Spending
Account ends at the end of the month in which your
layoff began. Federal regulations do not permit additional
contributions to Dependent Care Flexible Spending
Accounts after your employment ends. You can continue
to receive reimbursement for eligible**
expenses you incur before the end of the calendar
year (up to the remaining balance in your account).
|
| Hyatt
Legal Plan |
You
may continue coverage until the end of the 12th month
following the months the layoff became effective,
provided you remit payment of the full premium by
the first of each month for that month's coverage.
If you choose not to continue coverage, coverage stops
on the last day of the month the layoff became effective. |
| Long
Term Care |
You may continue making payments directly to the plan. Contact the HR/Payroll Service Center for information. |
* Plans not continued will end on the last day of the month in which the leave begins, unless the leave begins on the first of the month, in which case plans will be canceled effective the leave begin date.
**Eligible expenses include only those that are necessary
to enable you and, if you are married, your spouse to
work. Generally, this means care provided while you are
at work or actively looking for work. For your spouse,
"work" can include self-employment, being a full time student,
or being physically or mentally incapable of self-care.
Managed Care Plans
If you are in a Health Maintenance Organization (HMO) or the U-M Premier Care plan and
you are moving outside the service area of that plan for
more than 60 days, you must change coverage
to BCBS Community Blue PPO or Comprehensive
Major Medical (CMM) by completing and submitting a Moving out of a Managed Care Service Area form. Coverage under the new plan will become effective the first of
the month following receipt of the paperwork or the first
of the month following the move date, whichever is later.
Health
Care Flexible Spending Accounts
If you are participating in a Health Care Flexible Spending
Account, the account will reimburse you for eligible claims
up to the total annual amount you will contribute during
the calendar year. Only expenses incurred while you are
participating in the Health Care Flexible Spending Account
are eligible for reimbursement. Therefore, if you have a
balance in your account at the end of the month in which
you leave or layoff began and do not have sufficient claims
incurred prior to the coverage end date to exceed that balance
you must continue after-tax contributions to receive reimbursement
of future claims. If participation is not continued, your
Health Care Flexible Spending Account will end at the end
of the month in which your layoff began. You may resume
participation upon your return to work.
Reporting
Changes
It is your responsibility to notify the Benefits Office
of any changes of address or changes in family status for
the addition or deletion of dependents within 30 days of
the event. Changes may be reported by calling the HR/Payroll
Service Center at 734-615-2000 or 1-866-647-7657 (toll free).
Service Center Representatives are available to assist you
from 8:00 a.m. to 5:00 p.m., Monday through Friday. If you
have a U-M retirement savings account, notify Fidelity and/or TIAA/CREF directly of
any change of address.
Call Fidelity at 1-800-343-0860 or call TIAA/CREF at 1-800-842-2776.
When
You Return to Work
If you return to a benefits-eligible position, the HRRIS Benefits Transaction Team (BTT) will re-enroll you in the same benefit plans and level of coverage you were enrolled
in before your layoff.
After BTT processes your benefit elections,
you can confirm your benefits re-enrollments in two ways:
- You will receive a Confirmation Statement within 30
days after you return to work that summarizes your benefits
elections and the monthly payroll deductions taken for
each. If you do not receive a Confirmation Statement within
30 days, contact the HR/Payroll Service Center.
- Review your paycheck stubs when you return to work to
make sure that the proper deductions are taken. Promptly
report any necessary corrections to the HR/Payroll Service
Center.
Any changes in dependent status occurred during the
layoff must be reported within 30 days of your return,
or if coverage was continued during the layoff, within
30 days of the event.
The following summary indicates what happens to each
of your benefits when you return to a benefits eligible
position.
| Benefit
Plan |
Benefits
Options |
| Health
and Welfare Plans |
Medical
Dental
Vision
Prescription Drugs
|
If
you continued coverage during your layoff: Your
coverage continues.
If
you did not continue coverage: You will be re-enrolled
in the same plans and level of coverage you were enrolled
in before your layoff. If you return to work in a
new plan year and wish to make changes missed during
the Open Enrollment period, contact the HR/Payroll
Service Center within 30 days of your return to work
date. |
| University
Group Term Life Insurance |
Your
coverage continues. |
| Optional
Life Insurance
|
If
you continued coverage during your layoff: Your
coverage continues.
If
you did not continue coverage: You will be re-enrolled
in the same plan and level of coverage you were enrolled
in before your layoff. If you return to work in a
new plan year and wish to make changes missed during
the Open Enrollment period, contact the HR/Payroll
Service Center within 30 days of your return to work
date. |
| Dependent Life Insurance |
If
you continued coverage during your layoff: Your
coverage continues.
If
you did not continue coverage: You will be re-enrolled in the same plans and level of coverage you were enrolled
in before your layoff. If you return to work in a
new plan year and wish to make changes missed during
the Open Enrollment period, contact the HR/Payroll
Service Center within 30 days of your return to work date.
|
| Expanded
and Basic Long Term Disability |
Your
coverage resumes. |
| Travel
Accident |
Your
coverage resumes. |
| Retirement
Plans |
| Basic
Retirement Plan |
If
you continued coverage during your layoff: Your
coverage continues.
If
you did not continue coverage: Your coverage resumes. |
| Tax-Deferred
Supplemental Retirement Account (SRA), and 457(b) plans |
If
you continued coverage during your layoff: Your
coverage continues.
If
you did not continue coverage: Your coverage resumes.
|
| Other
Benefits |
| Health
Care Flexible Spending Account |
If
you continued coverage during your layoff: Your
coverage continues at the same level of participation
you had before your layoff.
If
you did not continue coverage: You will be re-enrolled at the same level of participation you had before
your layoff. If you return to work in a new plan year,
you must contact the HR/Payroll Service Center within
30 days of your return to work date if you wish to
participate in the Plan. Your coverage will become
effective the first day of the month following the
date you make the election. |
|
Dependent Care Flexible Spending Account |
You will be re-enrolled at the same level of participation you
had before your layoff. If you return to work in a new
play year, you must contact the HR/Payroll Service Center
within 30 days of your return to work date if you wish
to participate in the Plan. Your coverage will become
effective the first day of the month following the date
you make your election. |
| Hyatt
Legal Plan |
You will be re-enrolled in the same plans and level of coverage
you were enrolled in before your layoff. If you return
to work in a new plan year and wish to make changes
missed during the Open Enrollment period, contact the
HR/Payroll Service Center within 30 days of your return
to work date. |
| Long
Term Care |
Your long-term care coverage will continue as long as you continue to make payments to the plan. If you stopped making payments, call the plan to resume coverage. |
LOA/RIF Monthly Medical Insurance Costs
Paying for Your Benefits
|
