É«É«À²

Policies and Procedures Manual Section 11

The following provisions apply to É«É«À² Michigan University benefits which are affected when an employee receives layoff notice.

Annual leave

1. As of the effective date of layoff, any remaining annual leave balance is subject to the annual leave-separation and retirement provisions in the employee handbook.
2. Employees who are subsequently rehired or recalled within one year from the layoff notice date will be restored to the length of service status from their original hire date.

Sick leave

Upon effective date of layoff, sick leave balances are frozen. Sick leave balances are reinstated if an employee is recalled or rehired within one year of their layoff notice date.

Group health and life insurance

1. Group health and life insurance will continue throughout the layoff notice period. On the effective date of layoff, an individual may elect to continue, at their expense:
   • Health insurance coverage under the provisions of COBRA; and
   • Life insurance, by converting their group life insurance to an individual policy through the University's life insurance carrier.
2. An employee who is recalled to a benefits-eligible position and whose group insurance had been discontinued will have 31 days to enroll in University benefits.

Long-term disability

Long-term disability insurance will be discontinued on the effective date of layoff.

Retirement program

University contributions are discontinued on the effective date of layoff, but the employee may make contributions directly to the vendor.

Retirement eligibility

An employee must have reached the necessary age and accumulated the necessary years of service (see retiring from É«É«À² in the employee handbook) as of the last day worked to qualify for University paid retirement benefits. If the employee is recalled or rehired within one year of their layoff notice date, the provisions and terms of their University retirement plan, including levels of University contributions, will be re-established according to their eligibility defined by the hire date prior to the layoff notice.

Tuition discount and tuition remission

1. Tuition discount benefits (for employees) continue throughout the layoff notice period and the recall period, under then-current tuition discount plan provisions (see Tuition Discount and Remission, Policies and Procedures Manual Section 16), provided:
   • The employee meets all other tuition discount eligibility criteria.
   • The employee held a benefits-eligible position at the effective date of layoff.
   • The employee registers for class(es) prior to the end of the recall period.
   • The first day of the semester/session for which the employee is registered occurs prior to the expiration of the recall period.
   • When the recall period ends, tuition discount benefits cease.
2. Tuition remission benefits (for spouse and dependent children) continue throughout the layoff notice period, the recall period, and beyond the end of the recall period, under then-current plan provisions (see Tuition Discount and Remission, Policies and Procedures Manual Section 16), provided:
   • The employee and dependent meet all other tuition remission eligibility criteria.
   • The employee held a full-time benefits-eligible position at the effective date of layoff.
   • The dependent initially registers for classes prior to the end of the employee's recall period.
   • The dependent continues enrollment at least part-time in consecutive academic years, beginning no later than the end of employee's recall period.

<back   next>