UNIVERSITY OF MINNESOTA BUSINESS PROCESS

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UNIVERSITY OF MINNESOTA BUSINESS PROCESS Powered By Docstoc
					                        UNIVERSITY OF MINNESOTA

                              BUSINESS PROCESS:

                                Severance Package

                                     Terminal Agreements
              Non-Renewal for Academic Professional and Administrative Staff
                                      Phased Retirement
                             Retirement Incentive Option (RIO)
                    Staff Layoff for Civil Service, AFSCME Units 4,6 & 7,
            Teamsters Local 320 and Radio and Television Broadcast Technicians




             Policy Questions? Call Employee Benefits Service Center,
                                      612/624-9090
                                           Or
                               1-800-756-2663 Option 2.

              Process Questions? Call OHR Call Center, 612/625-2016




Produced by HRMS, 4/15/04                                     http://www1.umn.edu/ohr/hrms
Last revised 7/6/2008
                                                         Business Process:
                                                         Severance Package


Table of Contents

   General Statement................................................................................................................... 3

   Process..................................................................................................................................4-5
        Terminal Agreement
        Non-Renewal for Academic Professional and Administrative Staff
        Staff Layoff for Civil Service, AFSCME Unit 4, 6 & 7, Teamsters Local 320
              & Radio and Television Broadcast Technicians
        Retirement Incentive Option
        Paid Portion of Phased Retirement ................................................................................. 6




                                                                           2
                                     HRMS Business Process:
                                       Severance Package



General Statement
Due to reporting requirements for the University of Minnesota U Plan, a change is required to the
Business Process for the entry of Severance Agreements into HRMS.

Those Severance Packages that had previously required changing the Pay Group to “Without Salary”
have now changed to keep the Pay Group at “PAY”. This change is required in order for benefits to be
correctly administered. Although PAY is active, by also changing the Empl Type to Hourly, no pay is
generated unless Pay Entry is used.

After the close of the ’05 fiscal year it was discovered that many of the accounts that were being used for
employees receiving a severance package had become invalid. These accounts were then appearing on
the Invalid Account Code Report. In order to correct this situation we are changing the instructions in the
earnings distribution section on page 5, and centrally adjusting the records on all individuals with active
severances. Most adjustments will show a date of 6-13-05, but in some situations the date may be more
recent. 1

There has been confusion regarding the processing of phased retirements, during the paid portion of the
phased retirement make sure to follow the “beginning a phased retirement” instructions on page 6. When
ending the paid portion of the phased retirement follow the instructions on pages 4 & 5. 2


Retirement Incentive Option

On occasion the University offers retirement incentive options for specific periods of time. On May 15
through August 1st of 2008 the Retirement Incentive Option (RIO) was initiated for the 08/09 fiscal year.
RIO is a one-time opportunity for voluntary retirement. The 08/09 occurrence offers 36 months of benefit
coverage for eligible U of M employees. During a period when RIO is offered the Action/Reason
Terminate with Benefits/Retirement Incentive Option (TWB/RIO) is activated. It is inactivated when the
offer period is complete. 3




1
  Added 9/1/05
2
  Added 5/19/06
3
  Added 5/30/08


                                                     3
PROCESS
The process below outlines the necessary steps to take when ENDING an employee’s appointment for
the following reasons:

    Terminal Agreements
    Non-Renewal for Academic Professional and Administrative Staff
    Staff Layoff for Civil Service, AFSCME Units 4, 6 & 7, Teamsters Local 329 and Radio and
    Television Broadcast Technicians
    Ending the paid portion of a Phased Retirement (Note: See the section on page 6 for setting up
    the paid portion of a Phase Retirement.) 4
    Retirement Incentive Option (RIO) 5


Job Data

Workforce Administration > Job Information > Job Data

    Work Location
       1. Effective date = one day after the last day of work.
       2. Action/Reason
                      Terminal Agreements = Terminate with Benefits/Terminal Agreement (TWB/TAG)
                      Academic Professional & Admin Staff = Terminate With Benefits/Layoff NonRenewal
                      >=3 yrs Service (TWB/LER)
                      Staff Layoff = Terminate With Benefits/Layoff NonRenewal >=3 yrs Service
                     (TWB/LER)
                      Phased Retirement (ending paid portion only) = Terminate With Benefits/Severence
                      (TWB/SEV) 6
                      RIO = Terminate with Benefits/Retirement Incentive Option (TWB/RIO) 7
    Payroll
       1. Pay Group = PAY.
       2. Employee Type = H (Hourly)
            (If the employee was Salaried continue to Compensation page.)

    Compensation
       If employee had been Salaried, make the following changes
       1. Frequency = H
       2. Rate Code = NAHRLY
       3. Comp Rate = Hourly rate of pay (Calculation: ABBR / # of Hours in Appointment Term)

    Earnings Distribution
       A new distribution row is required if employee had been Salaried or Exception Hourly.
       1. Insert a new row effective dated = Termination W/Benefits effective date. 8
           Choose the combo code appropriate for: 1026(Fund), 10090(Deptid), 20004(Prg),
               1000001975(ChF2). 9
           Note: If multiple earnings distribution rows exist, reduce to a single distribution row.
       2. Encumbrance field must be Non-Sponsored = N (None)
           Sponsored = D (Draw Down) should not be used.

4
  Added 5/19/06
5
  Added 5/30/08
6
  Added 5/19/06
7
  Added 5/30/08
8
  Added 9/1/05
9
  Added 5/30/08


                                                      4
      Benefits Program Participation 10
         1. Elig Fld 6 = value of 2 for all RIO changes. (Centrally entered.)

      SAVE the record.

      NOTE: Check to see if Additional Pay is connected to this appointment. If an Additional Pay record
      exists submit a correction form to HRMS to have the end date changed.

      NOTE: If the appointment stops mid-pay period, remember to go to Pay Entry during the open
      window, make any necessary adjustments and SAVE. (See warning message below.)

      Many Action/Reasons inserted with a mid-pay period date will result in the following warning message
      being received.



          Warning - - A mid pay period add or change to a row requires a review and save in Pay Entry

          Pay Entry will display the prorated amount/hours for an add or change that does not begin on the
          first work day of the pay period or end on the last day of work in the pay period. You must SAVE
          the displayed calculated amount/hours for the changes other than the following Job data actions:
          Hire, Addl Job, Rehire, Layoff, LOA, Recall, Retirement, Short Work Break, Suspension,
          Termination, Return-Dis, Return LOA, Return-SWB.



      NOTE: For RIO, a Retirement/Retirement row is inserted by Employee Benefits staff effective dated
      the beginning of the pay period following the expiration of the 36 months of benefits. 11




10
     Added 5/30/08
11
     Added 5/30/08


                                                      5
Beginning the Paid Portion of an Employee’s Phased Retirement

The process below outlines the necessary steps when BEGINNING the paid portion of an employees
Phased Retirement.

   Job Data

   Workforce Administration > Job Information > Job Data

       Work Location
          1. Effective date = 1st day of Paid Leave.
          2. Action/Reason = Paid Leave of Absence/Phase Retirement (PLA/PHR)

       Job Data
           1. Standard Hours = No Change*

       Payroll
          1. Pay Group = PAY
          2. Empl Class = No change

       Compensation
          1. Compensation Rate = No change*

       *The compensation rate and standard hours do not change on these agreements. The
       paid/unpaid portions are accommodated in Earnings Distribution.

       Earnings Distribution
          1. Effective Date = Effective date from Job Data.
          2. Earn Codes:
              Paid dollars = Phased Retirement (PHR)
              Unpaid dollars = Unpaid Phased Retirement (SLV)
          3. Encumbrance:
              Non-Sponsored monies = N (None)


       SAVE the record.

   NOTE: Remember to follow the normal business processes for placement of leaves and returns on
   all non-12 month (B, G etc.) and 9/12 appointments.

   Example: A “B” appointment on Paid Leave of Absence (PLA) [Phased Retirement] is placed on
   Short Work Break (SWB) at the end of spring semester, then Returned from Short Work Break (RWB)
   and replaced on Paid Leave of Absence (PLA) at the beginning of Fall Semester.


   NOTE: To end the paid portion of a Phase Retirement refer to pages 4 & 5.




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