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Total Rewards frequently asked questions

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What do the terms exempt vs. nonexempt mean?

These terms relate to the overtime provisions of the FLSA. If a job is FLSA exempt, that means it is exempt from the overtime provisions of the FLSA no matter how many hours are worked. If a job is non-exempt, it is eligible for overtime pay for any hours worked over 40 hours in the work week.

Find more information at https://umurl.us/flsa.

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When will I receive my Form W2?

All employees have the option of receiving an electronic Form W2. If an employee opts for an electronic form by December 31, he/she will be able to view and print it from myHR around the middle of January. Email notification will be sent to those who consented to the electronic W2 when it is available in myHR. The university will postmark paper forms by the end of January (or early February if the end of January falls on a weekend) to employees who opt for a paper form. Please allow 10 business days for delivery. Those who opt for an electronic form will not have a paper form generated.

If you are a retiree with university life insurance in excess of $50,000, you will receive Form W2, as well.

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How could the changes to the Fair Labor Standards Act (FLSA) affect my job?

The U.S. Department of Labor updated the FLSA regulations related to overtime and exemptions for executive, administrative, and professional employees. Currently, workers who make less than $23,660 per year ($455/week) are considered non-exempt (hourly) from the overtime provisions of the FLSA and therefore are paid 1.5 times regular pay for overtime hours. The updated regulations increase this salary threshold from $23,660 per year to $47,476 per year ($913/week). 

Learn more and access additional FAQs on the university's FLSA webapge (https://umurl.us/flsa).

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How do I opt for an electronic Form W2?

If you have not already opted into receiving electronic W2s, the university will send you an email in early December asking if you choose to receive Form W2 electronically. Instructions for opting in or out will be included in that email. The selection to opt in or opt out must be completed before midnight, December 31. Also, at any time, you may log into myHR to change opt in/opt out status: Navigate to Self Service > Payroll and Compensation >W-2/W-2c Consent to provide or remove electronic consent. The consent status on file as of December 31 will be the status used for W2 generation (electronic or paper form).

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Will retiree insurance change for current retirees on 1/1/18?

Changes to retiree insurance eligibility and subsidies, effective in 2018, have little effect on current retirees. All current retirees, as well as their spouses and other dependents, who are enrolled in UM’s insurance plan(s) will:

  • Retain their UM insurance coverage—including medical, dental, life, and vision insurance.
  • Retain the current subsidy from UM—including subsidies for spouses and other dependents.

In other words, if you are a current retiree, the changes being communicated to active employees do not impact you. For a list of all current plans available to retirees—including dental, vision, and life—visit the retiree benefits overview on the Total Rewards website.

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What research was conducted to support the changes to retiree insurance?

The Retiree Medical Study provided the research on which the Total Rewards Advisory Committee (TRAC) made its deliberations when developing its retiree insurance recommendations, which have since been approved. For more information, access the Retiree Medical Study webpage or the Changes to retiree insurance webpage.

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How will retiree insurance change for current faculty and staff on January 1, 2018?

Under the approved changes, employees’ eligibility for retiree insurance benefits, as well as their eligibility for a UM System premium subsidy, will be different depending on their age and years of service. Visit the Changes to retiree insurance webpage for general information on eligibility, or access the resources below, which can be especially helpful in determining how you will be affected:

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When deciding which Access Category I am in, does UM round my age and years of service?

Effective January 1, 2018, employee’s eligibility for the university’s retiree insurance plans will change. Eligibility will differ based on whether an employee falls into Access Category A, B, C, or D. The Access Category you are assigned to is based on whole numbers; partial years are not counted. For example, if you are age 50.5 and have 5.5 years of service, you drop the half a year on each and add 50 and 5. In this example, the calculation is 50 + 5 = 55. It’s not 50.5 + 5.5 = 56.

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Do changes to retiree insurance affect all retiree insurance benefits, or just medical plans?

The changes pertain to eligibility and subsidies for these retiree insurance plans: medical, dental, and vision. In the future, as recommended by TRAC, the university will conduct a review of retiree life insurance as well to leverage the marketplace and provide focused value to retiree needs. 

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How does an employee become eligible for UM retiree insurance right now?

Prior to 1/1/2018, or for those employees in Access Category A, an employee is eligible for retiree insurance if he/she is:

  • Eligible for retirement* and
  • Enrolled in a UM insurance plan prior to retirement

This is the structure of retiree insurance benefits and applies to any employee retiring before January 1, 2018, or any employee in Access Category A. Changes to retiree insurance take effect on January 1, 2018, and change eligibility criteria. Read about how eligibility criteria changes in 2018.

* Learn about current retirement eligibility criteria by watching the Retirement eligibility and the defined Benefit Plan on-demand online seminar.

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What holidays does the university observe?

The university observes eight official holidays: New Year's Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the Friday following Thanksgiving Day, Christmas Day, and other days as may be designated by the President.

When a holiday falls on Saturday, the preceding Friday is observed. When a holiday falls on Sunday, the following Monday is observed.

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What tools are available to help me with my retirement decision?

If you're interested in tools that can help you decide if it is better to retire before retiree insurance benefit options change or to wait until later, the university has many resources to support you.

In summer of 2016, UM mailed personalized retirement estimates to employees who wanted to better understand their retirement options. To better understand your retirement options now, you may use UM’s Retirement Calculator to estimate what your pension payout would be if you retired at different points in time.

The decision of whether and when to retire is an individual decision and involves many factors, including pension benefits, other retirement savings, medical coverage options, and an individual’s own career and personal aspirations. UM cannot provide retirement advice, but both Fidelity and TIAA offer free, objective retirement guidance and education on every campus. Visit the Changes to retiree insurance webpage for tools and resources.

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Will participating in the Wellness Incentive affect my eligibility for university insurance plans?

No. Your participation will not affect your eligibility or rates for university insurance plans.

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If I have a sick or vacation time accrued, what happens to it when I retire?

When you retire, you will receive day-for-day service credit for accrued sick leave, and there is no cap on sick leave accruals. 

For unused accrued vacation time, you will receive service and salary credit. Unused accrued vacation time is paid out over time at retirement; there are caps on vacation accrual based on your accrual rate. 

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Who are the in-network providers for my medical insurance plan with UnitedHealthcare?

The list of in-network providers for each medical plan is available online from UnitedHealthcare's website. If you already have a myUHC.com account, log in to view your list of network providers and facilities. If you do not yet have an account, you may visit the comparison website created by UnitedHealthcare for university employees.

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Who is eligible to receive paid holidays?

All full-time administrative, service, and support employees are entitled to receive pay of eight hours (maximum) for these holidays. Regular employees who are 75-99% FTE will receive holiday pay on a prorata basis. Any administrative, service, and support employee who is exempt from classification because they primarily direct instructional or research activities is not subject to this policy.

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How are observed holidays handled if my department works 24/7 or if I work a non-standard schedule?

Any unit or department that operates 24 hours a day or seven days a week may observe the holiday on the actual day of the holiday rather than the equivalent observed Friday or Monday. If you work a non-standard schedule, you may receive equivalent time off if the holiday falls on your normal day off. If another day cannot be arranged, you will be paid for the holiday.

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What happens to my service credit if I become disabled in 2017, prior to retiree insurance changes?

The years of service credit necessary to retire and to enroll in retiree insurance will be measured the same way in 2018 as it has always been. In other words, the changes to retiree insurance have no effect on how service credit is accrued.

Under the changes to retiree insurance that go into effect on January 1, 2018, each employee is placed in an access category based on the employee’s status as of December 31, 2017, whether an employee is on Long Term Disability (LTD) or not. If an employee was vested before going on LTD, his/her service credit up to and including December 31, 2017, will be counted. If an employee is NOT vested when the LTD leave begins, he/she will not accrue service credit up to and including December 31, 2017.

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What if I am on vacation during a paid holiday?

If you are on a vacation during an official holidays, that holiday will not count against your vacation time. Hours paid for the holiday but not actually worked do not count toward overtime.

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How am I reimbursed if I am required to work on a holiday?

If you are required to work on a holiday, pay is as follows:

Nonexempt regular employees Exempt regular employees

Receive 1-1/2 times their straight-time wage rate (premium pay) for the hours worked in addition to their holiday pay. These hours will count toward the calculation of weekly overtime pay.

Receive compensatory straight time off if required by their administrative superior to work on a holiday.

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If an employee retires and returns to a benefit-eligible position, could this benefit change again?

We can't tell you absolutely that retiree insurance will never change again. But at this time, we don’t anticipate additional changes. If an employee retires and comes back to a benefit-eligible position, the person would return to their original access category they were in based on age and years of service as of Dec. 31, 2017.

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I’m in Category B with 19 years of service on 1/1/18. Can I enroll in ret. insurance after 1/1/18?

If retiring on or after 1/1/18, you must work to age 60 and attain 20 years of service to be eligible for retiree insurance. Category B employees who work to age 60 and attain 20 years of service can enroll in the university’s retiree insurance plans, regardless of what date the employee reaches those two benchmarks.

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What happens if I need to observe a special religious holiday?

Time off to observe special religious holidays may be approved by your supervisor. These hours must be taken as vacation, personal days, or treated as an excused absence without pay.

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What services and tools does UnitedHealthcare provide?

UnitedHealthcare offers many tools to help make your medical insurance coverage work for you. The myUHC Cost Estimator can help you estimate your out-of-pocket health care costs prior to seeing a doctor. Additionally, the tool allows you to compare health cost estimates at different providers so you can be sure you’re making an informed decision about what is best for you.

The Health4Me app is another resource for accessing a wealth of healthcare information in seconds. The app lets you check your account balances and benefit amounts, stores your health plan ID card, collects and tracks your current Personal Health records, and helps you view, sort, and pay claims. Additionally, you can use the app much like you use the myUHC Cost Estimator when you compare costs of common procedures. You can even connect with healthcare professionals 24/7 as well as find in-network providers and hospitals nearby in case of emergency.

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Who is the university administrator for behavioral health?

Mental health coverage for active benefit-eligible employees and their dependents is offered through United Behavioral Healthcare’s (UBH) Live and Work Well program. Use the Live and Work Well program website to access benefits, manage claims, and get information on care and services. You can also search in-network clinicians to find your best provider.

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I’ve heard I can only retire at certain times of the year; is that true?

If you are in a 9-month appointment, you may retire on 3/1 or 9/1. All others can retire on any day of the year after meeting the eligibility requirements to be a retiree.

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Under the Affordable Care Act (PPACA), who’s required to track hours, and where do they track time?

Variable hour non‐exempt employees already track worked hours and will continue to do so.

Variable hour non‐teaching exempt employees (both staff and academics that are not fully benefit eligible) should record actual worked hours using a non‐pay time reporting code in the time reporting system. Instructions on how to record hours can be found at http://www.umsystem.edu/apps/is/ps-training/upgrade9.1/PlayerFiles_HourlyTR/toc0.html. Partial hours should be rounded to the nearest half hour (i.e., 15 minutes or over round up to the next half hour and under 15 minutes round down to the previous half hour).

Variable hour teaching academic appointments quantify time worked using an equivalency of 3 1/3 hours worked for each credit hour taught. This methodology is used to determine their full-time equivalent (FTE). No action is required on the part of the individual. The FTE is entered by the department. This methodology should be applied regardless of the time period of which the class is taught (i.e., 8 weeks versus 16 weeks).

Visit the Patient Protection and Affordable Care Act (PPACA) page for more information.

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What can vacation days be used for?

Absences from work that are not caused by an illness or injury must be taken as vacation, except for: absences due to a family death, jury duty, or leaves of absence of less than 30 days treated as excused absences. An employee may elect to charge absences due to illness or injury to their accumulated vacation with supervisory approval.

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At what rate is vacation accrued, and how much vacation can I accrue?

You may accumulate twice your annual vacation accrual. Vacation is accrued as follows:

Employee group Years of service Days per year

Office, technical, maintenance and service (includes all employees in positions designated as nonexempt and eligible for overtime pay).

5 or less 12
Over 5 17
Over 15 22

Administrative and professional (includes all employees in positions designated as exempt and not eligible for overtime pay).

5 or less 17
Over 5 22

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If spouses work for UM, what if one retires while eligible for ret. insurance and the other doesn’t?

If a spouse loses his or her eligibility for a UM benefit(s), the retiree may add the spouse as a dependent for retiree insurance benefits. Please keep in mind, the newly covered spouse is eligible only for continued coverage under the same programs he or she was enrolled in as an eligible employee. Additionally, such a change must be made within 31 days after the change in status.

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Under PPACA, am I required to track hours for jobs worked outside of the university?

No, variable-hour employees do not have to track hours worked outside of the university.

The requirement is to track hours worked for the employer. Therefore, the university only has to track the hours that a variable hour employee works at the university. But if an employee works more than one job for the university, the UM System will track hours for all of those jobs.

Visit the Patient Protection and Affordable Care Act (PPACA) page for more information.

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When do I accrue vacation time, and when can it be used?

If you are an administrative or professional employee, you will accrue vacation on the monthly pay cycle. You must be in active status by the 15th of the month in order to receive vacation accrual for that month. If you are an office/technical worker or service/maintenance employee, you will accrue vacation on the biweekly pay cycle.

Vacation time must be earned before it is taken, and though you may be accruing vacation throughout the month, it will not be available for use until the first day of the following pay period.

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Who is eligible for paid vacation?

All regular administrative, service, and support staff who have prior supervisory approval are eligible to receive paid vacation. Regular employees who are 75-99% FTE will accrue vacation on a prorata basis. Employees with primary titles that are administrative, service, and support who are exempt from classification because their positions are primarily directing instructional or research activities are not subject to this policy.

If you are a probationary employee, you may accrue vacation time. However, you cannot use this leave until your probationary period has been satisfied.

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What if I run out of vacation time?

If you exhaust your vacation time, you may take vacation without pay if you receive prior supervisory approval.

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Does the Affordable Care Act (PPACA) teaching equivalency apply to all types of courses?

Yes. This equivalency (3 1/3 hours worked per credit hour taught) will be used for classroom credit courses, online courses, and courses taught by Graduate Teaching Assistants (GTAs).

Visit the Patient Protection and Affordable Care Act (PPACA) page for more information.

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How can personal days be used?

Personal days are paid days off to be used at an employee's discretion, and they can be taken in hourly increments. These days are subject to supervisory approval. Personal days cannot be used on the last day of duty unless the employee is to be placed on a layoff leave of absence.

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How do personal days accrue, and can they expire?

All regular administrative, service, and support staff are granted four personal days each year (upon their hire date and thereafter credited on the yearly anniversary of hire).

Your unused personal days are lost at the end of the anniversary year, even if you are on leave. Payment for unused personal days upon termination or retirement is not permitted.

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Who is eligible to receive personal days?

All regular administrative, service, and support staff are granted four personal days each year. Regular employees who are 75-99% FTE are granted personal days on a prorata basis. Employees with primary titles that are administrative, service and support who are exempt from classification because their positions are primarily directing instructional or research activities are not subject to this policy.

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Can I use personal days if I am on probation?

Yes. If you are in your initial probationary period, you may use two of the four personal days granted. If your probation period is extended, you may use the remaining two personal days.

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What happens to my personal days if I am on layoff?

If you are on layoff, you may retain personal days during the layoff leave of absence; you may also use your personal days immediately prior to the layoff. However, personal days must be taken within the anniversary year.

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What if I am required to work on a day I had previously scheduled as a personal day?

If you are required to work on a previously scheduled personal day, you will receive 1 1/2 times your regular straight-time wage rate for the hours worked. You may also retain the personal day or choose to receive your regular pay for the personal day. Time reporting for employees who elect to receive their regular pay for the personal day should be treated as if they had worked a holiday.

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What’s the penalty if the university doesn’t comply with Affordable Care Act (PPACA) requirements?

To comply with Patient Protection and Affordable Care Act (PPACA), the UM System must offer medical coverage to at least 95% of employees that average 30 hours per week or more. Not meeting this requirement will incur a penalty based on all benefit-eligible employees, which could be as much as $39,000,000 for UM.

Visit the Patient Protection and Affordable Care Act (PPACA) page for more information.

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Are employees required to use vacation or leave when meeting with an EAP practitioner?

The Employee Assistance Program (EAP) is a benefit provided to all employees at no cost. Employees are not required to utilize any of their leave when meeting with a practitioner in the EAP. Visit the Employee Assistance Program webpage for more information.

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What HR policies have changed as a result of the PPACA?

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What Is Step Therapy through Express Scripts?

Step therapy is a program for people who take prescription drugs regularly to treat a medical condition, such as arthritis, asthma or high blood pressure. It allows you and your family to receive the affordable treatment you need and helps your organization continue with prescription-drug coverage.

In step therapy, drugs are grouped in categories, based on treatment and cost:

Front-line drugs — the first step — are generic and sometimes lower-cost brand drugs proven to be safe, effective and affordable. In most cases, you should try these drugs first because they usually provide the same health benefit as a more expensive drug, at a lower cost.
Back-up drugs — Step 2 and step 3 drugs — are brand-name drugs that generally are necessary for only a small number of patients. Back-up drugs are the most expensive option.

If you have more questions, you can go to StepTherapyFacts.com to watch informative videos or call the Express Scripts Pharmacy at the number on your ID card. (This FAQ answer provided by ExpressScripts.)

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When can sick leave be used?

Sick leave can be used in the event of:

  • Inability to work (for any hours scheduled during the first 40 hours of the workweek) due to an illness or injury.
  • Disability due to pregnancy.
  • Medical and dental appointments that cannot be scheduled during non-working hours.
  • Inability to work due to an illness in an employee's immediate family* (up to 12 days annually).
  • Inability to work because of an illness or injury compensable under Workers' Compensation.

*Immediate family includes parents, spouses, children, stepchildren, foster children, and siblings (no matter where they might live). Other related persons or Sponsored Adult Dependents living in the employee's immediate household also fall under this policy. This time may also be used for placing an adoptive child in the employee’s home or care of that child immediately after placement.

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Who is eligible to accrue sick days, and how is it accrued?

All regular administrative, service, and support staff at 100% FTE accrue one sick day per month of continuous employment. 75-99% FTE will accrue sick leave on a prorata basis. Employees with primary titles that are administrative, service, and support who are exempt from classification because their positions are primarily directing instructional or research activities are not subject to this policy.

Sick leave is accrued from the first day of employment and can be used on the first day of the following pay period. Administrative and professional employees accrue their sick leave on the monthly pay cycle, while office/technical and service/maintenance employees accrue sick leave on the biweekly pay schedule.

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Will the PPACA teaching equivalency adjust based on the number of students enrolled in the course?

No. The teaching equivalency for the Patient Protection and Affordable Care Act (PPACA), 3 1/3 hours worked per credit hour taught, will remain the same regardless of the number of enrolled students.

Visit the Patient Protection and Affordable Care Act (PPACA) page for more information.

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Can I use sick leave if I am on probation?

Yes. However, sick leave must be earned before it is taken, and though you may be accruing sick leave throughout the month, it is not available until the first day of the following pay period. 

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