1. What does the phrase "all things being equal" mean?
Departments retain the discretion to determine what composition of knowledge, skills, and abilities and the number of staff required for the proper functioning of a department; therefore, factors such as unique knowledge, skills, abilities, training, performance, or other relevant factors may take precedence over consideration of seniority in making decisions regarding layoff. When these factors impact the efficient operation of the department and/or an employee's ability to perform the job, a department may determine that all things are not equal and consider these attributes to justify the retention of a less senior employee.
2. How long of a notice is required before an employee begins their layoff?
The length of notice required depends on the type of position. Please review university policies for separations and end of appointment notice, including HR-118 and CRR 310.035.
3. [Administrative, service and support staff only] Can an employee be required to use vacation and/or compensatory time off for the two (2) weeks' notice required pursuant to HR 117 Layoffs?
No. The employee cannot be required to use accrued vacation during the two (2) week notice period.
4. What are the relevant dates for calculating seniority in the event of a layoff?
The relevant dates for calculating seniority for administrative, service and support employees are as follows:
- Department Seniority Date – The first day of regular continuous employment within a department.
- University Seniority Date – The first day of regular continuous employment at the University of Missouri.
For additional clarification, Service and Maintenance employees subject to a union agreement should refer to the Understanding of Policies.
A change in a regular employee’s status (e.g., a break in service) may change their department and University date.
5. Are benefit-eligible employees who are hired for a defined period of time (e.g., one year) eligible for layoff and transition assistance when their employment ends at one year?
No. Employees are not eligible for layoff and transition assistance due to the nature of the appointment.
6. Are employees in a layoff leave guaranteed a job when the leave expires?
No. Upon expiration of a layoff leave, if the employee has not located a benefit-eligible position, the employee will be terminated.
7. If an employee is offered a comparable position in the same department while on layoff leave, must they accept the position?
No. Failure to return to work when offered a comparable position will not result in the loss of layoff benefits. It is the employee’s decision whether or not to accept a job offer. If an employee accepts another benefit-eligible University position, the layoff benefits will end upon the new position beginning.
8. If an employee accepts another benefit-eligible position with the University during their layoff leave of absence, but does not successfully complete the qualifying period, is their leave of absence end date extended when they return to the layoff leave of absence?
No. The employee’s original layoff leave of absence end date remains and will not be extended.
9. If an employee’s position is moved to another unit (e.g., division, department, etc.), is this a layoff?
It depends. If the position is not moved to a significantly different geographic location that requires an employee to move or commute, then this would not be considered a layoff, regardless of the administrative reporting structure.
10. Are employees eligible for unemployment benefits during their layoff leave of absence period?
If placed on layoff leave of absence, employees may apply for an eligibility determination to the Department of Labor’s Division of Employment Security.
The Department of Labor’s website provides links to individual state offices at http://www.servicelocator.org/OWSLinks.asp
11. What happens to voluntary deductions such as the University’s recreation center, athletic tickets, concert series, alumni donations, United Way donations, or other voluntary deductions other than parking?
Voluntary deductions will continue as long as the employee is in paid status including the weeks they are receiving transition assistance payment. If the employee would like to stop these deductions prior to the end of receiving the last payment from the University, the employee will need to contact each department which is deducting these funds (e.g., recreation center, payroll).
12. What happens to parking deductions?
Employees should contact their campus Parking and Transportation department.
13. What happens to layoff benefits if an employee is hired for a non-benefit eligible or temporary position with the University during their layoff leave of absence?
Insurance –The new position will not have any effect on insurance benefits while the primary (benefit-eligible) position remains in layoff leave of absence. Employees will remain eligible to continue all insurance plans they had at the time of the layoff.
Leave – Employees do not accrue vacation, sick, or personal days for a non-benefit eligible position.
Retirement – The UM System offers 3 Core Retirement Plans (http://umurl.us/retplans) and the plan the employee is eligible for depends on their benefit eligibility and hire status. If the employee’s plan is:
- Defined Benefit (DB) Plan or DB Component of the Hybrid Plan: Neither the layoff leave of absence nor the service in the non-benefit eligible position is considered creditable for vesting or retirement.
- Defined Contribution (DC) Plan or DC Component of the Hybrid Plan: Service credit is earned to achieve vesting while on a leave of absence, however service in the non-benefit eligible position is not considered creditable for vesting.
Non-benefit eligible appointments would have to terminate before an employee may retire in certain cases. Specific situations should be evaluated with the UM System Office of Human Resources Retirement department.
14. Will employees continue to have access to myHR during a leave of absence and after the leave expires to change their employee data?
Yes. Employees continue to have access to myHR during the layoff leave of absence and after separation of employment. If access is not available, please contact the Division of Information Technology.
Paid Time Off
This section applies to benefit-eligible Administrative, Service and Support staff and certain non-regular academic employees as approved by the chancellor and president.
15. When should an employee anticipate receiving their unused vacation payment?
If applicable, vacation accruals and usage will be calculated after the employee’s effective date of layoff and will be paid as a lump sum payment on the paycheck following their final regular paycheck (based on the normal pay schedule).
16. Can an employee elect to retain accrued vacation once the layoff effective date occurs, rather than being paid out lump sum?
No. Unused vacation, accrued as of the last day worked before the commencement of the leave of absence, is paid out as a lump sum.
However, if an employee obtains another benefit-eligible position with the University prior to the layoff effective date, the employee may be able to transfer to the new position with their vacation balance. Contact the campus Office of Human Resources to discuss the circumstances involved.
17. Does an employee in a layoff leave of absence lose their accrued sick leave?
It depends. If an employee is reemployed during the period of the layoff leave of absence, the sick leave will be reinstated; otherwise, the sick leave is lost after expiration of the layoff leave of absence.
If eligible for retirement under the DB Plan or the DB Component of the Hybrid Plan, unused sick leave will be credited toward service credit in the pension calculation.
18. What happens to an employee's personal days (if applicable) while on a layoff leave of absence?
The employee retains unused personal days during the layoff leave of absence; however, these days will be lost on the employee's anniversary date. Employees may be provided an opportunity to use the personal days prior to commencing a layoff leave of absence unless they are provided pay in lieu of notice and there is not time to use the personal days.
19. What happens to an employee's winter break leave balance (if applicable) while on a layoff leave of absence?
The employee retains unused winter break leave balance during the layoff leave of absence; however, unless the employee is reemployed during the layoff leave of absence, these days will be lost on the employee's termination or November 30, whichever occurs first. Employees may be provided an opportunity to use the winter break leave balance prior to commencing a layoff leave of absence unless they are provided pay in lieu of notice or there is not enough time to use the winter break leave balance.
20. [Non-exempt employees only] What happens to unused accrued compensatory time?
Compensatory time should be paid on the final regular paycheck (based on the normal pay schedule).
21. If an employee finds a job that is eligible for leave accruals within the UM System while in layoff leave of absence, how are each of the leave accrual categories affected?
Vacation – The employee will accrue time in accordance with their new exemption status and continuous years of service per HR-402.
Sick – The employee’s sick leave balance will be reactivated and time will accrue per HR-404.
Personal – If the employee returns to work before their anniversary date, they will be able to use the previous leave balance. If they return to work after their anniversary date, they will receive new accruals for the year.
Transition Assistance Pay (TAP)
22. Are partial years of continuous service counted in calculating transition assistance compensation?
No. Partial years of service do not count toward calculating weeks of transition assistance payment.
23. What is the rate of pay for the transition assistance payment?
Transition assistance is paid at the base rate the employee was being paid as of the last day worked, including shift differential, if applicable. If they worked different shifts that each have shift differential pay, the transition assistance payment will be based on the average weekly pay during the two preceding pay periods.
24. When should an employee anticipate transition assistance payment to begin?
Once a signed University of Missouri Layoff and Transition Assistance Agreement is submitted to Human Resources, initial payment will be paid on the employee’s next regular pay cycle after the layoff effective. The initial payment may be delayed pending the return of the signed University of Missouri Layoff and Transition Assistance Agreement, and payroll deadlines.
25. What is the impact on the payout of transition assistance if the employee accepts another job with the University before their transition assistance is fully paid?
If the new position is benefit-eligible, transition assistance pay will be suspended during the time the employee is receiving pay in the new position. If the new job ends before the layoff leave of absence expires, transition assistance will be resumed and paid through the end date of the leave of absence or until the employee is paid the number of weeks originally owed, whichever occurs first. The end date of the layoff leave of absence will not be extended by the time worked in the new position.
If the new position is non-benefit eligible, transition assistance pay will continue concurrently with the non-benefit eligible paycheck.
Health and Welfare Benefits
26. How do employees pay for benefits during a layoff leave of absence?
Premiums will be automatically deducted while employees are receiving transition assistance pay.
27. Will COBRA benefits be available to allow for continued medical, dental and/or vision coverage?
Yes. The qualifying event date for COBRA eligibility is the end of the layoff leave of absence. Dependents are eligible for continued medical, dental and/or vision coverage as long as they were covered under the plan on the day before the layoff leave of absence ended. The COBRA administrator will mail information on COBRA benefits. Packets will be mailed to the home address listed in the HR records. If an employee decides to enroll in COBRA, the employee will have 60 days from the date of notification on the COBRA notice letter to return the continuation election form. Once enrolled, the employee will make payments directly to the COBRA administrator.
28. Will life insurance benefit coverage continue during the layoff leave of absence?
Yes. Basic life, additional life, dependent life and/or accidental death and dismemberment insurance plans can continue for the length of the layoff period. While TAP is active, those premiums will be automatically deducted.
At the end of a layoff leave of absence, employees may elect to convert or port policies without providing proof of insurability. The life insurance administrator will mail information on conversion and portability opportunities. To convert or port coverage, the employee will need to complete and submit the required form(s) within 31 calendar days of the end of the layoff leave of absence. If an employee does not receive their notice within before the end of the layoff leave of absence, they should contact the HR Service Center.
29. Will long-term disability (LTD) benefit coverage continue during the layoff leave of absence?
Yes. Long-term disability benefits can continue for the length of the layoff leave of absence.
Tuition benefits for employees, spouses and dependents
30. Will employees who are laid off be eligible to participate in HR 303: Educational Assistance, during the leave of absence?
Yes. Employees who are on a layoff leave of absence remain eligible for educational assistance through the end of their layoff leave of absence, provided they remain on a layoff leave of absence through the beginning of the course in which they are enrolled. If the layoff leave of absence ends during the semester, they employee may complete the semester in which they are enrolled.
31. Will spouses and dependents of employees who are laid off be eligible to participate in the HR 309: Tuition Reduction program during the leave of absence?
Spouses and dependents who are receiving tuition reduction will remain eligible for the reduction through the end of the employee’s layoff leave of absence, provided they meet the eligibility requirements of the program and the employee remains on a layoff leave of absence through the beginning of the course in which they are enrolled. If the layoff leave of absence ends during the semester, spouses and dependents may complete the semester in which they are enrolled.
Retirement
32. Will the layoff leave of absence time count toward vesting or service credit?
The UM System offers 3 Core Retirement Plans and the plan the employee is eligible for depends on their benefit eligibility and hire status. If the employee’s plan is:
- DB Plan or DB Component of the Hybrid Plan: A layoff leave of absence is not considered creditable for vesting or service credit.
- DC Plan or DC Component of the Hybrid Plan: Service credit is earned to achieve vesting while on a leave of absence.
Specific situations should be evaluated with the UM System Office of Human Resources, Retirement department.
33. For DB Plan and Hybrid Plan participants, will the transition assistance payment be credible towards my pension benefit calculation?
No. Transition assistance payment is not granted salary credit in the pension calculation for retirement.
34. Will employees be able to access their vested or non-vested benefit during the leave of absence?
No. Employees are ineligible to access a vested or non-vested benefit during the layoff leave of absence but may do so after the termination date, which is the last day the employee is on layoff leave of absence.
If the employee’s Core Retirement Plan is:
- DB Plan or DB Component of the Hybrid Plan: employees can expect to receive election forms within six months following the date of termination.
- DC Plan or DC Component of the Hybrid Plan: employees can contact Fidelity (800-343-0860) to discuss disbursement options after their termination date.
If the employee wishes to terminate the layoff leave of absence earlier, that request must be made in writing to their campus Office of Human Resources. The employee may contact the HR Service Center to discuss the cost of benefit coverage as an employee on leave versus the cost of benefit coverage under COBRA.
35. May an employee in the DB Plan or DB Component of the Hybrid Plan elect to retire and begin pension payments rather than take a layoff leave of absence or retire and begin pension payments during a layoff leave of absence?
Eligible employees may elect to retire and begin pension payments instead of being placed on a layoff leave of absence or they may end their layoff leave of absence early in order to retire and begin pension payments. An election to retire in lieu of a leave must be made in writing and submitted to the campus Human Resources office. Employees may contact the HR Service Center to discuss the cost of benefit coverage as an employee on leave versus, if eligible, the cost of benefit coverage as a retiree.
36. If an employee returns to a benefit-eligible position after the layoff period ends, are their years of service bridged for vesting purposes?
The UM System offers 3 Core Retirement Plans and the plan the employee is eligible for depends on their benefit eligibility and hire status. If the employee experiences a break in service, review of retirement plan eligibility and vesting status upon rehire are reviewed on a case-by-case basis. Employees may consult with the HR Service Center to discuss their specific situation.
37. Are employees in the DB Plan or the DB Component of the Hybrid Plan required to pay the retirement employee contribution during transition assistance?
No. The contribution is not charged on transition assistance payments.
38. Do employees in the DC Plan or the DC Component of the Hybrid Plan receive the employer match during transition assistance?
No. Transition assistance pay is not eligible for employee deferrals or employer match.
39. Is it possible to reach retirement requirements (i.e., service credits and/or age) during the layoff period, and then retire?
Typically, no. Employees should contact the UM System Office of Human Resources Retirement Department for additional information specific to their situation.
Date Created: 09/26/1997
Updated: 04/20/2020; 9/10/2020; 11/29/2021; 9/23/2022; 10/26/2022
Reviewed 2022-10-27