UNIVERSITY OF CALIFORNIA. Rehired Retiree Appointment Madelyn Bello HR Policies Analyst August 2010...

UNIVERSITY OFCALIFORNIA

Rehired Retiree Appointment

Madelyn BelloHR Policies Analyst

August 2010 v. 7

Rehired Retiree Appointment | 08.06.2010 | v. 7

Workshop Objectives

• To understand the terms and conditions of the Rehired Retiree Appointment.

• To understand counting hours for career employment status and counting hours for Health and Welfare and UCRP eligibility.

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Rehired Retiree Appointment• Rehired retirees are employees who have retired from the

Laboratory or a University of California campus or retired from LLNL or LANL while a UC employee.

• Conditions of employment must be consistent with any restrictions imposed by the retirement system and in accordance with guidelines for rehiring retirees issued by the University of California Office of the President.

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Rehired Retiree Appointment• There are two types of rehired retirees:

– UCRP monthly paid rehired retiree.– Lump sum cash out rehired retiree.

• UCRP retirees are rehired into the “rehired retiree” classification.– May be rehired as a career or term appointment employee if

they waive their retirement benefit.• Lump sum cash out retirees are rehired into the rehired retiree

classification only (as of 1/1/09).– Not allowed to be rehired into any other employee

classification.– Prior to 1/1/09, was able to be hired as career, term, or limited

employees.

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Rehired Retiree Appointment | 08.06.2010 | v. 7 6

Retiree Legalities

• Employee must separate from employment before receiving retirement benefits (IRS Code).

• Cannot receive retirement benefits from UCRP and work in a UCRP eligible position at the same time (IRS Code).

• No pre-planned retirements (IRS Code).– 30 days wait.

• No returning to the same job!!! (IRS Code).– May return to:

• Help transition job with a clear end date.• Train new hire.• Do special project (hard to find special skills).

• Cannot be excluded as a class from UCRP (ADEA).


Rehired Retiree Appointment• Reaching 900 hour limit.

– Terminate employment.• May return in same appointment after a break of at least 120

calendar days (clears hours limit).– Or wait until hours fall off.

• Rehired Retiree may not work above 900 hours.– The Medicare Secondary Payer (MSP) program is designed to reduce

costs to the Medicare program by requiring other insurers of health care for beneficiaries to pay primary to Medicare.

• If a Rehired Retiree works over 43% in a year, UC must provide primary benefits to the employee instead of Medicare.

• If a Rehired Retiree works over 43% in a year, they become enrolled in UC’s CORE Benefit Plan.

• Which means, their Health and Welfare benefits are greatly reduced.

– If the Rehired Retiree works beyond 1,000 hours, their employee classification defaults to career.


Policy• Our Rehired Retiree Policy is in compliance with UC policy.

– UC policy takes into consideration IRS & Medicare concerns.• Terms & Conditions of employing retired employees changed

effective January 1, 2009.• Retirement payments determine employee classification

– Lump sum retiree = Rehired Retiree– Monthly paid retiree = Rehired Retiree– Monthly paid retiree & stopped monthly payments = Career or

Term Appointment


Policy• Reemployment of retired employees must be for Laboratory need.

For example,– Needed expertise (unique skills and knowledge) on a project;– Named as a PI or co-PI on a funding grant;– Providing experienced support to a project;– Educate the next generation of scientists and engineers;– Train their replacement.

• Break in service at least 30 calendar days (IRS requirement)– There has to be a clear intent to separate from Lab employment.– Break in service means there has to have been a termination

action.


Policy• Reemployment as a Rehired Retiree is up to 12 months.

– Appointment renewals may be requested.– Appointments greater than 365 days is considered an exception

to policy.– For example, an appointment from 3/1/2009 thru 3/1/2010 is

over 365 days; 3/1/2009 thru 2/28/2010 is within policy.• Employment as a Rehired Retiree is up to 43%.

– Rehired Retiree works up to 900 hours in a 12-month period.• There are no extensions beyond 900 hours.

– Ideally, Rehired Retirees work no more than 43% at any one time.


Policy

NOTE: Appointments over 43% time during any length of time provide

eligibility to Rehired Retirees for UC-sponsored employee medical coverage (Core Benefits), which makes Medicare

become the secondary payer.


Policy

• If employing a Retired Employee into a career position (such as the same position held before retirement or another vacant career position), the job must be posted and a search begun within 30 days of the vacancy being created and a minimum 30-day recruitment period must be held.


Hours Limit

•Appointment duration.• 900 regular hours in a rolling 12-month period.

• Qualifying service includes all time on pay status in one or more limited appointments. On-call and overtime hours shall not be included as pay status hours when computing qualifying service.

• Normally, 1 year appointment, renewable.•% Effort – Full-time, Part-time, or Variable. Recommend to hire as variable.•% Effort Variable—max 43%.•TOOL: HRIS’ Limited hours reports.

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Hours Limit• Track hours by running the Limited Hours Report for Employee

Status.

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Section 1: Berkeley Lab MissionSUBTITLE HERE IF NECESSARY

Hours Limit•Reaching 900 hour limit.

• Terminate employment.•May return in same appointment after a break of at least 120 calendar days (clears hours limit).

• Or wait until hours fall off. •Request to work above 900 hours.

• Divisions may request for an employee to work beyond the 900 hours (up to 960 hours).

• Complete the Retired Employee Approval form requesting the exception to the 900 hour rule.

•Provide rationale for exception.•Provide work plan: what will the employee accomplish with the extra time .

•If approved by CHRO & Deputy Lab Director, new max is up to 960 hours.

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Hours Limit

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•NOTE: Approvals must be obtained prior to working over 900 hours.•NOTE: This will be reported as an exception to UCOP as an exception to policy. Send a copy of the completed form to the HR Policies Analyst. •NOTE: Watch out for time being entered late into LETS!


Managing Hours – for exampleJAN 2010Worked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 100

FEBWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 200

MARWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 300

APRWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 400

MAYWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 500

JUNWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 600

JULWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 700

AUGWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD - 800

SEPTWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD – 900

OCTWorked 0 hoursTOTAL HOURS IN 12 MONTH PERIOD - 900

NOVWorked 0 hoursTOTAL HOURS IN 12 MONTH PERIOD - 900

DECWorked 0 hoursTOTAL HOURS IN 12 MONTH PERIOD - 900

JAN 2011Worked 0 hoursTOTAL HOURS IN 12 MONTH PERIOD - 900

FEBWorked 0 hoursTOTAL HOURS IN 12 MONTH PERIOD – 800 (Jan 2010 hours fall off)

MARWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD – 800 (Feb 2010 hours fall off)

APRWorked 100 hoursTOTAL HOURS IN 12 MONTH PERIOD – 800 (Mar 2010 hours fall off)

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Probationary Period• Does not need to serve a probationary period.• If converted into a career or term (> 1 year) appointment without

break in service, hours served in a rehired retiree appointment counts toward the 6 month probationary required.– If in same job and working for the same supervisor.– NOTE: 1,000 hours is one week less than 6 months

(assumes full-time).– For represented jobs, check the collective bargaining

agreement for probationary period language.

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Probationary Period Language for Rehired Retiree to Career Change of Status• Posted Reclass – non-represented• Non-posted Reclass – non-represented

• Conversion after reaching 1000 hours in a 12-month period.• Same probationary period language as Posted Reclass –

non-represented

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Probationary Period Language for Limited to Career Change of Status

• Posted Reclass – represented• Non-posted Reclass – represented

• Conversion after reaching 1000 hours in a 12-month period• SX, CX, RX, TX – credited up to 6 months of Limited

Appointment for probationary period• SX, CX, RX, TX – credited up to 3 months of Limited

Appointment for probationary period• KB• SX, CX, RX, TX, KB - Recruited for career appointment – hired

as Limited pending visa approval

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Eligibility for Salary Increases

• Rehired Retirees are not eligible for salary increases.• May request a pay adjustment if below salary range or upon division

request.• NOTE: If they are in a exempt position, they are treated as a non-

exempt employee.


Probationary Period

• Does not need to serve a probationary period.• If converted into a career or term (> 1 year) appointment without

break in service, hours served in a limited appointment counts toward the 6 month probationary required.– If in same job and working for the same supervisor.– NOTE: 1,000 hours is one week less than 6 months (assume

full-time).


Health and Retirement Benefits

• Rehired Retirees receive their health and retirement benefits from their retirement plan.


Vacation Accruals

• Rehired Retirees are not eligible to accrue vacation.


Sick Leave Accrual

• Rehired Retirees are not eligible to accrue sick leave.


Layoff Rights / Separation Notice

• Rehired Retirees may be released at any time at the discretion of the Laboratory.– The employee shall be notified of the release in writing.

• Refer to RPM 2.21 Terminations.


Professional Development

• Education Opportunities.– Position-related programs – rehired retiree employees are NOT

eligible.– Career-related programs – rehired retiree employees are NOT

eligible.• Tuition Reimbursement.

– Rehired retiree employees are NOT eligible.• UC Reduced-Fee Enrollment Benefit.

– Rehired retiree employees are NOT eligible.


Professional Development

• Paid Leaves of Absence.– Rehired Retiree employees are NOT eligible.

• Professional Renewal Leave.– Rehired Retiree employees are NOT eligible.

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Practice• LBNL does not allow defaults to Career (Full-level) Benefits.• Manage employees to 900 hours.• By exception with CHRO’s approval, manage to 960 hours. • If employee becomes eligible for Career (Full-level) Benefits,

prepare ePAF for change in benefits level and send to Benefits Department. – Contact Benefits Department to coordinate change in benefit

levels.– Prepare a Change of Status memo to notify employee of their

change in Benefits and their Period of Initial Eligibility (PIE).

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Process• Hiring a Rehired Retiree

– Lump sum retiree• Retired Employee Approvals form

– Monthly paid retiree• Retired Employee Approvals form• UC Retirement Plan Waiver and Release

– Monthly paid retiree who stopped payments (hire into a career or term appointment)

• Retired Employee Approvals form• Talk with Benefits regarding process to stop monthly

retirement payments

NOTE: Maintain copy of completed Retired Employee approvals form in a place that can be easily accessed.


Process

In hiring anyone, carefully check the resume or CV and employment application to see if they have worked for LBNL or UC before and have retired from LBNL or UC. If they retired, the rehired retiree policy applies to them.


Process

• Change of status from Rehired Retiree to Career or Term Appointment Employee– Retired Employee Approvals form– Upload completed form into ePAF

• Extension of a Rehired Retiree Appointment– Retired Employee Approvals form– Upload completed form into ePAF

• Extension of a Retired Employee who was hired as a Term Appointment Employee– Retired Employee Approvals form– Upload completed form into ePAF


Process

• Manage appointment end dates; don’t let appointment end dates expire.

• Manage hours worked; don’t let rehired retirees work beyond 900 hours.

• Run appointment end date query and limited hours reports on a frequent basis.


Exceptions to policy

• Send completed Retired Employee Approvals forms with supporting documentation to the HR Policies Analyst.– These forms will be forwarded to UCOP.

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UCRP Rehired Retiree

• UCRP retirees who take a monthly pension payment must sign the UCRP Waiver. – UCRP Retiree have up to 21 calendar days from date of hire to

sign.– Signing the waiver means the retiree waives rights to earn

retirement service credit during term of rehired retiree employment.

• DOES NOT waive right to career appointment if works > 1,000 hours in rolling 12 month period.

– Must be signed at time of each rehire as rehired retiree.


UCRP Rehired Retiree

• Cannot make employment offer earlier than 30 calendar days after retirement.

• Retiree must not be rehired before 30 days.• If waiver isn’t signed, hours count towards both retirement and

employment.– Signed waiver stops the retirement count.

• Retiree can only be hired into the rehired retiree appointment.– May be rehired as a career appointment employee if they waive

their retirement benefit.


UCRP Rehired Retiree Waiver

• Copy in employee file.• Original to Benefits Office.• If refuse to sign, note on waiver, “REFUSE TO SIGN” copy to file,

original to Benefits Office.


PERS Rehired Retiree

NOTE: IF REHIRING A PERS RETIREE, CONSULT WITH THE BENEFITS OFFICE FIRST!


UCRP Lump Sum Cash out

• UCRP Lump Sum Cash out retirees may not sign waiver.• May not return before 30 calendar days have passed.• Offer cannot be made before 30 calendar days from retirement date.• Retiree can only be hired into the rehired retiree appointment.


Represented Employee Issues

• Collective Bargaining Agreements (CBAs).– Non-represented – Rehired Retiree Appointment.– Represented – Rehired Retiree Appointment.

• UCRP rules are in effect for represented employees too.• These employees will appear as either “Rehired Retiree” in HRIS as

their employee class.• Restrict Rehired Retiree appointments to 900 hours.

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Hiring Issues

• Temporary staffing requires careful management.– For example, if you need to fill a position expected to continue

beyond 1,000 hours but less than a year:• Term appointment (for non-represented employees and for

represented employees if allowed by CBAs).• Contract worker.• Job sharing

Note: Use Rehired Retiree for temporary staffing but not in the same job may jeopardize UCRP.

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Offer Letters and HRIS

• Be careful with employment offer letters.– Retain contingency language.

• “This appointment is subject to satisfactory job performance and continuing availability of work and funds.”

– Be mindful of end dates stated in letters.• “Rehired retiree appointment not to exceed 900 hours in a

rolling 12-months period or until «Until_Dt» whichever comes first.”

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Offer Letters & HRIS• HRIS must match offer letter (except in the case of a

represented employee who is in a temporary appointment).• Match benefits participation level with appointment type (refer to

Benefits Matrix).– If Benefit participation level changes (rehired retiree to

career or term appt):• Send copy of PAF to Benefits• Counsel employee regarding benefits change and

document in status change letter.• If benefit level goes up, send employee to the benefits

orientation for more information.

* If benefits level goes down, then have them contact Benefits Department.

• Offer letter prevails if there is a discrepancy.

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End Dates in HRIS for Rehired Retiree Appointments

• End dates for rehired retiree appointments must be entered into HRIS.– End date ensures the employee does not drop off the “screen”.

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Policies and Practices

• LBNL does not allow defaults to career appointments.• Job postings are required for career and term appointments.• Time spent in Rehired Retiree appointment do not qualify for a

waiver of recruitment.

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Rehired Retiree to Career Appointment

• Default to Career Appointment.– If a rehired retiree appointee reaches 1,000 hours, they

automatically default into a career appointment (UCRP).• 1,000 hours on pay status in 12 consecutive months without

a break in service of at least 120 consecutive calendar days.– A break in service is measured from separation date.

– NOTE: if no separation date is recorded in HRIS, no break in service occurred.

– NOTE: some union contracts provide for 3 months of probation credit if in “similar” position in addition to above provision.

» Check CBAs and/or LER because each contract have slightly different wording.

• Career status effective date will be the first day of the month after employee accumulates the 1,000 hours.

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• Impact of conversion to career status.– All career appointments are eligible for salary increases.– Eligible for FULL benefits (if % effort is full-time or part-time

50% or greater).– Eligible for vacation accrual.– Eligible for sick accrual (or continue to accrue sick leave).– Rights to preferential rehire, recall, and severance pay.

• Receives a certain # of days notice of intent to layoff dependent on job title.

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– Eligible for professional development.• All education Opportunities.• Tuition Reimbursement.• UC Reduced-Fee Enrollment Benefit.

– Eligible for PRT and Professional Renewal Leave.– Rights to expanded grievance rights.

– Rights to “just cause standard” for termination.

• AND, they stop receiving their monthly pension checks!

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COUNTING HOURS FOR CAREER EMPLOYMENT STATUS AND BENEFITS and UCRP

ELIGIBILITY.


Rehire Employee into a Rehired Retiree Appointment - Counting Hours

Reason Employee Status Health & Welfare Status

Employee Classification

Rehired Retiree Rehired Retiree

Look Back Rolling 12 Months Rolling 12 Months

Counter Resets 120 Day Break 365 Day Break

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Rehire Employee into a Rehired Retiree Appointment Counting Hours

Duration of Break in Service

Employee Status Health & Welfare Status

Rehire Rehired Retiree

> 4 months &

< 12 months

Start count at zero (0) Count work hours in last 365 days

Rehire Rehired Retiree

> 12 months

Start count at zero (0) Start count at zero (0)

Rehire

< 4 months

Count Limited Appt. work hours in last 12

months

Count Limited Appt. work hours in

last 12 months

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The Two Counts

CAREER EMPLOYMENT STATUS

BENEFITS and UCRP

(assumes break-in-service of greater than 4 months but less than 12 months)

Why Count? If > 1000 hours become career

If > 1000 hours membership into UCRP.

Impact to Employee

Career Status 1. Eligible for UCRP membership which means eligibility to enroll in career (full-level) benefits.

Impact to Lab

Career Status 1. Now: Insufficient funds to pay for increased benefit costs and no contribution into UCRP.

2. Later: Contributes into UCRP on behalf of employee.

Note: org burdens may be insufficient to cover costs.

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The Two Counts

CAREER EMPLOYMENT STATUS

BENEFITS and UCRP

(assumes break-in-service of greater than 4 months but less than 12 months)

HR’s Role To monitor and prevent default to career employee status

To monitor and prevent default to career (full-level) benefits

Reports Limited Hours – Employee Status report

1. Limited Hours – Benefit and UCRP Eligibility (for active employees)

2. Terminated Hours query (for inactive employees)

-Hours in past rolling 12 months

-Prompts: > date: enter date that is full 12 months prior to anticipated start date

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CAREER EMPLOYEE STATUS

Career rehired as Rehired Retiree

Rehired Retiree rehired as Rehired Retiree

Rehired Retiree

Hours as career do not count towards 900 hours

Eligibility for Employee Status:

< 120 day break-in-service count old hours

> 120 day break-in-service don’t count old hours

Eligibility for Employee Status:

< 12 months break-in-service count old hours

Reports Limited Hours – Employee Status report

1. Terminated Hours query (email [email protected] to run query for you)

2. Limited Hours Report

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HOW LONG IS 1,000 HOURS?

• Count is actual work hours in the month based on LETS time.– 100% time = approximately 5.75 months.– 50% time = approximately 11.5 months.– 47.5% or lower time will not equal 1000 hours in a rolling 12

month period.

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Completing the Retired Employee Approvals Form

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What other questions do you have?

UNIVERSITY OF CALIFORNIA. Rehired Retiree Appointment Madelyn Bello HR Policies Analyst August 2010...

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