Transcript Slide 1

Furlough/Salary Reduction Plan
Implementation Guidelines
Workshop for HR Administrators
Local UCOP
September 15, 2009
Purpose

Share information about how the furlough/salary
reduction plan works and how it will be
implemented at UCOP


Not everything is fully decided; updates will be
communicated as questions are resolved
Provide an opportunity to ask questions about
the implementation
Slide 2
Agenda

UCOP Efforts




Who is Furloughed?
Salary Reduction





Systemwide
Local
How it works
One-time EDB Update Process/Key September Dates
On-going EDB/OPTRS Maintenance
Furlough Timekeeping
Communications
Slide 3
UC Systemwide Efforts to Date

UC Board of Regents approved system-wide furloughs

UCOP posted FAQs


General FAQs
 http://www.universityofcalifornia.edu/budget/?page_id=87
FAQs For Administrators



Provisions Governing the Use of Furlough Time
 http://atyourservice.ucop.edu/administrators/docs/fur_provs.pdf
Implementation Guidelines


http://atyourservice.ucop.edu/administrators/employment/furlough/index.html
http://atyourservice.ucop.edu/administrators/docs/implement_guide.pdf
UC is providing updates to OASIS


One-time program to create EDB lines for the salary reduction
On-going program to calculate/store furlough time accrued
Slide 4
UCOP Local Efforts to Date

Employee Status Confirmation:





HR worked jointly with BRC, SCRT, Department
Personnel Administrators confirming exemptions
Contract, Visas, Students and START
Timesheets Updated to include Furlough hours
BRC Payroll will review program reductions
UCLA Payroll is implementing the UCOP Local
programs


One-time program to create EDB lines for the salary
reduction
On-going program to calculate/store furlough time
accrued
Slide 5
Who is furloughed?

UC systemwide has identified specific exclusions from
the furlough/salary reduction plan such as:




The program identifies exclusions by:



Funding sources
Type of employee
Alternate plans for clinical enterprises
Appointment Attributes
Distribution Attributes
Location-specific exclusions/alternate plans beyond what
is specified in the program must be approved by UCOP

The exclusions must be consistent with the Regents’ intent and
approved by the President
Slide 6
UCOP Exclusions
Category
How to Identify
Student Employees
Appointment Type = 4 or Title Code
Foreign national employees on H-type
(H-1, H-2, H-3) & E3 visas.
Visa Type = H1, H2, H3, E3
Contract employees
Appointment Type = 1
Note: Refer to slide 9 for additional information
Employees enrolled in START*
RTP distribution lines for the
employee exists
* Note: Employees should be set up to participate in either the
START program OR the Furlough Plan, not both.
Slide 7
Represented Staff

The furlough/salary reduction plan does not currently
apply to represented staff unless they are Supervisors or
Uncovered

If negotiations with unions result in represented staff
participating in the Furlough/Salary Reduction Plan, the
UC systemwide program would be run again for that
bargaining unit only
Slide 8
Contract Employees

Does not apply to external agency employees.

Current contract employees:


Departments should request that employees accept a voluntary
amendment of the contract to permit the salary reduction.
If the employee is unwilling to consider the amendment, the department
may terminate the contract consistent with the contract’s provisions and
offer a new contract that incorporates language related to the salary
reduction plan.

New contracts must include the salary reduction language.

Contact Frank Tastevin at 415-476-2713 ([email protected]) in
HR for suggested language and department-specific guidance for
existing and new contracts. If Frank is not available, contact Rene
Jackson at 510-987-0879 ([email protected]) .
Slide 9
Determining the Furlough Band

Salary reductions and furlough accruals are based on a sliding scale
of seven salary bands.

The Medical Contribution Base (MCB) as of 1/1/09 (or hire date if
later) will be used to determine an employee’s furlough/salary
reduction band.

What is MCB? An employee’s full-time salary equivalent as of
January 1st of a given year. This figure is used to determine an
employee’s salary band for certain benefit premiums in the next
calendar year – in this case for 2010.

MCB does not change throughout the year, even if the employee’s
salary changes. Therefore, the employee’s furlough band will not
change either, even if their salary changes.

MCB as of 1/1/09 (MCB Nxt in OASIS) will continue to determine the
salary band, even when MCB Nxt is updated on 1/1/10.
Slide 10
Where to Find MCB-Nxt in OASIS
023456789
LAST NAME,FIRST NAME
HOME DEPARTMENT NAME
• Go to IINS screen, Field Name = Cur/Nxt ContBase (Current/Next Medical Contribution Base).
• Next Contribution Base, 088 ($88,000), is the MCB-Nxt for 1/1/09. This will be used to determine the
Furlough/Salary Reduction band.
• Current Contribution Base, 086 ($86,000), was the MCB on 1/1/08.
Slide 11
MCB

Most employees already have a value in MCB-Nxt.

As part of the UCOP one-time program to create pay
reduction lines, any employee without a value in MCBNxt will have one calculated and populated.


The MCB-Nxt will be provided based on the current salary as of
the date the program runs.
For employees who return after a break in service, the
MCB-Nxt must be recalculated if the break in service is
more than 120 days.


If the break in service is less than 120 days, the original MCBNxt should be used.
Departments should work with Payroll to recalculate MCB-Nxt.
Slide 12
Furlough Band Table for Staff and
Non-Faculty Academics
Salary
Band
MCB-Nxt
Annual
Compensation
Furlough
Days
Total Equivalent
Salary Reduction
1
<=40k
< $40,000
11
4%
2
41-46k
$40,001-$46,000
13
5%
3
47-60k
$46,001-$60,000
16
6%
4
61-90k
$60,001-$90,000
18
7%
5
91-180k
$90,001-$180,000
21
8%
6
181-240k
$180,001-$240,000
24
9%
7
>240k
>$240,000
26
10%
Note: All Senior Management Group (SMG) members will be provided 10
furlough days regardless of their respective salary reduction levels.
Slide 13
Salary Reduction Processing

The UC Furlough/Salary Reduction Plan
reduces an employee’s pay regardless of
whether furlough time is taken.

The pay reduction must be implemented in a
way that preserves the employee’s original
salary and benefits.
Slide 14
How the Salary Reduction Works

To create the salary reduction, new distribution lines with
new DOS codes need to be added to the EDB (similar to
RTP lines for employees on the START program). Two
new DOS codes:



Every eligible distribution line requires the corresponding
SRB/SRS line.


SRB = time-based salary reductions
SRS = flat $ rate reductions (e.g., stipends)
One SRB/SRS line cannot correspond to multiple REG lines.
UCOP is developing a program that can be run once for
every bargaining unit to create these SRB/SRS lines.

The first time it will be run will be in September for September
payroll (key dates will be discussed later).
Slide 15
SRB Line in the EDB (REG example)
023456789
LAST NAME,FIRST NAME
HOME DEPARTMENT NAME
APPOINTMENT TITLE
12345
DEPARTMENT NAME
12345
DEPARTMENT NAME
09/01/09
08/31/10
Slide 16
Part-Time Employees
 Part-time
employees will have their salary
reduced in proportion to their full-time
equivalent salary. Example (based on
previous employee).







Appointment = 60% appointment
Annual Full-time equivalent Salary = $87,355
60% of Full-time equivalent Salary = $52,413
Furlough Salary Band = 4 ($60,001 - $90,000)
Furlough Salary Band 4 = 7% salary reduction
Distribution % to enter on the SRB Line = 4.2%
(60% x 7%)
Salary Reduction = $3,669 ($87,355 x 4.2%)
Slide 17
Paying Employees on Exception Time

Salaries for exception time reporting employees
who are automatically paid by OASIS will
automatically be reduced by the SRS/SRB lines.
Slide 18
Paying Employees on Positive Time

For variable, positive-time employees who are paid by OPTRS, the
salary reduction amount needs to be calculated and processed each
pay period.

SRB lines entered in the EDB will carry through to the Time Roster.

Based on the salary reduction percentage and eligible number of
hours worked, the Time Roster must be updated with the
appropriate number of SRB Reduction Hours.

The number of SRB hours to enter on the Time Roster is based on
the hours reported on the eligible REG line subject to the reduction.

There should always be a corresponding SRB line for every eligbile
REG line.
Slide 19
Salary Reduction Calculation
1. Put Hours on Pay Status on the REG Line in the Time Roster.
2. Calculate the Hours to populate on the SRB Line of the Time Roster
using this formula:
Reduction %
from Salary
Band Table
X
# of Hours on
Pay Status
from the REG
Line
=
# of SRB Hours
Slide 20
Calculation of SRB Hours
Reduction %
from Salary
Band Table
X
# of Hours on
Pay Status
from the REG
Line
=
# of SRB Hours
For our example, let’s assume MCB-Nxt = 049 which
corresponds with Salary Band 3 and a 6% reduction percentage.
If the employee has 4 hours worked on the REG line.
.06
X
4
=
.24
Slide 21
Furlough Pay Reduction & Timekeeping
One-time EDB Update Process
Accruals and Usage
Key September Payroll Dates
Compute
Pay
Period
B2
9/6-9/19
MO
9/1-9/30
UCOP
Program
Runs
Roster
Available
12th
17th
Last Day to
Update EDB for
Roster
Last Day to
Enter Time on
Roster
Last Day to update
EDAT/EDB.
PAY COMPUTE
22nd
23rd
24th
23rd
24th
25th
Slide 23
Furlough Timekeeping

Employees will accrue furlough days based on their level
of participation (salary band tables) and eligible time
worked.

Furlough time off is time on pay status.

OASIS will calculate the accrual and may be used to
report furlough day usage.

Two new DOS codes have been set up for recording
furlough accrual and usage.


FUT = Furlough Leave Taken.
FUA = Furlough Leave Accrued (will rarely be used by
departments in certain circumstances because the accrual is
system-generated).
Slide 24
Furlough Band Table:
Staff and Non-Faculty Academics
Salary
Band
MCB-Nxt
Annual
Compensation
Furlough
Days
Accrual
Rate
Total Equivalent
Salary Reduction
1
<=40k
< $40,000
11
.042308
4%
2
41-46k
$40,001-$46,000
13
.050000
5%
3
47-60k
$46,001-$60,000
16
.061538
6%
4
61-90k
$60,001-$90,000
18
.069231
7%
5
91-180k
$90,001-$180,000
21
.080769
8%
6
181-240k
$180,001-$240,000
24
.092308
9%
7
>240k
>$240,000
26
.100000
10%
Slide 25
Accruals, continued

There is no “minimum time on pay status”
requirement for furlough accruals.

OASIS will accrue based on time worked for the
eligible distribution lines.

Furlough balances will be housed in the PTO
bucket.

Earnings statements will not contain furlough
balance information.
Slide 26
Usage

Employees must be given the opportunity to use furlough days during
the plan year and can begin using them as early as September 1.

Employees are expected to use all of their furlough days during the plan
term (September 1, 2009 – August 31, 2010).


Furlough time is for use during pre-determined mandated closure days.




Furlough time will expire at the end of the plan term, or upon separation
from employment, whichever occurs first.
Location-wide closures: December 23rd, 28th, 29th, 30th; April 16th and
June 18th
Employees who are excluded from the plan may choose to use vacation,
comp time, or leave without pay during mandated closures in accordance
with policy and collective bargaining agreements.
Additional closures may be scheduled at the Department or Divisional Unit
level.
Furlough days leftover after any mandated closures may be taken at the
discretion of an employee, with the approval of the employee’s
supervisor.
Slide 27
Usage, continued

Furlough days are intended to be used on a monthly basis spread over the course of the
furlough period. However, accrued furlough days may be saved up and used in blocks
prior to the end of the furlough period with the supervisor’s agreement.

Supervisors also have the authority to approve the use of furlough days in advance of
accrual in order to manage employee schedules during the plan year and for mandated
closures. However, there are two issues to consider:



Furlough time should be recorded in one-day increments for exempt employees, ¼ hour
increments for non-exempt employees.


First, tracking use may be more complicated.
Second, if an employee leaves during the plan year, and they have used more than they have
accrued, there is no mechanism to recover the value of those additional furlough days.
Furlough leave usage must be in alignment with policy = exempt employees must use leave in
whole day increments based on their schedules.
For example, for a 50% exempt employee who works 4 hours M-F, a furlough day needs to be 4
hours.
Change of status – how will changes be handled where an employee is in a position
affected by furlough and then transfers to one that is not?

If an employee transfers to a position or has funding changed that results in them no longer
being part of the program, any unused furlough days would remain in the bank and can be used
up until August 31, 2010.
Slide 28
Tracking/Reporting

OASIS will calculate and accumulate furlough
accrual hours.

Accrued hours will show on the Time Benefits
Roster.

Departments will be responsible for managing
furlough leave usage and balances.
Departments can use:

Timesheets or other internal tracking systems.
Slide 29
Thank You for Participating