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DEPARTMENT OF ADMINISTRATIVE & FINANCIAL SERVICES
Bureau of Human Resources
April 18, 1997
HUMAN RESOURCES MEMORANDUM 2-97
|TO:||Agency/Department Heads, Personnel Managers, Directors of
|SUBJECT:||Extension of Voluntary Cost Savings Programs|
The Voluntary Cost Savings Programs have been extended by the Legislature (Chapter 24, Part J, Public Law 1997) and will be available for participation through June 30, 1999. Agencies must notify employees of this extension and distribute the program information provided by this Memorandum to employees as soon as possible.
See Attachment 1 for detailed processing information and Attachment 2 for detailed program information.
Reduced Workweek: Full-time employees may apply to their appointing authority to reduce their workweek to part-time, and part-time employees may apply to work fewer hours than the number of hours for which their part-time position is established. Note: Appointing authorities may approve reduced work weeks of less than 20 hours per week.
Sporadic Leave: Full-time and part-time employees may apply to their appointing authority to take sporadic days off without pay. Leave must be taken in blocks of eight (8) hours or the number of hours in the normal work day. Sporadic days may be consecutive, but not more than five (5) days of sporadic leave may be taken during any biweekly pay period.
Unpaid Leave: Full-time and part-time employees may apply to their appointing authority to take up to one (1) year of unpaid leave. Unpaid leave must be for at least one week.
Flexible Position Staffing: Subject to approval
by the appointing authority or appointing authorities involved, the hours of a single
full-time position may be divided between two (2) full-time employees who are qualified
for appointment to that position.
HEALTH, DENTAL AND LIFE INSURANCE
Health and Dental Insurance: Participants in the voluntary cost savings programs will not experience a reduction in health and dental insurance benefits. For participants who stay on the payroll, the State's payment for the participant's coverage and the State's share of the participant's dependent health insurance package will continue to be based on the work schedule in effect prior to participation. Deductions will be made for the participant's share of dependent coverage. For participants who take unpaid leave, the State will make payments for the participant's coverage and the State's share of the participant's dependent health insurance package based on the work schedule in effect prior to participation. The participant will be billed for the participant's share of dependent coverage.
Life Insurance: Participants in the Voluntary
Cost Savings programs will be allowed to continue the life, accidental death and
dismemberment, supplemental and dependent insurance coverage amounts that were in effect
prior to participation. For participants who stay on the payroll, the State will
continue to pay the employee premium for the prior basic coverage, and deductions will be
made for the cost of supplemental and dependent plans, as appropriate. Participants
who go off the payroll to participate may pay the premium cost required to continue their
life insurance coverage, provided the required payment is made within
thirty-one days of their last paycheck.
HEALTH, DENTAL AND LIFE INSURANCE
Employees must complete the required FY 1996-FY 1998 Application Form, PER 115 (3/97). Note: The PER 115 (3/97) Application forms for FY 96 - FY 98 will be used until these forms are depleted. If the FY 96 - FY 98 Application form is used for programs that start on or after July 1, 1998, please edit to show the correct Fiscal Year date. Agencies will be notified when a replacement Application form is printed and available for use.
Participation in the voluntary cost savings programs is subject to the approval of the appointing authority, in accordance with the impact that participation will have on operational needs.
Agencies must respond to employee requests for participation in the Voluntary Cost Savings programs as soon as possible after applications are received and, to the extent that operational needs and program requirements allow, try to meet each applicant's terms for participation.
Project employees, temporary (acting) employees and intermittent employees are not eligible to participate in the Voluntary Cost Savings programs. Each of these types of employment is the result of a pre-determined operational need that precludes the possibility for approval for a reduced workweek or an unpaid leave of absence.
Formal Human Resource and position processing actions are required for all approved applications except sporadic days off. See Attachment 1 for processing instructions.
Applications that are approved for participation in the Voluntary Cost
Savings programs other than Sporadic days off must be submitted to the Bureau of
Human Resources with the MFASIS forms necessary to start this participation. See Attachment
1 for processing instructions.
CHANGE TO APPROVED PARTICIPATION DATES
In the event of a personal or financial hardship, applicants or participants may obtain the approval of the appointing authority to modify the dates of participation that were reported on their approved application.
If a participant is notified of layoff, that employee's participation
must be terminated, and the employee must be provided all layoff rights and privileges.
VOLUNTARY PROGRAMS WORKSHEET GUIDELINES
Agencies must complete a savings estimation for each application received using the Voluntary Programs Worksheet, PER 108F (7/96). Savings must be calculated for applications that are denied as well as applications that are approved. Note: The PER 108F forms for FY 97 will be used for the remainder of this fiscal year. Agencies must, however, use the July 1, 1997 salary schedule amounts for Cycle A participants on and after June 9, 1997 and for Cycle B participants on and after June 16, 1997. Agencies will be notified when replacement forms are available for use.
If the terms of participation are changed after the Worksheet has been submitted, agencies must submit a revised Worksheet to reflect the revised savings.
If an employee will be participating in more than one Voluntary Cost Savings program, a separate Worksheet will need to be completed for each program.
Submit completed Worksheets to the Bureau of Human Resources as applications are received, regardless of the program starting date. Retain a copy for department files.
Donald A. Wills, Acting Director
BUREAU OF HUMAN RESOURCES
Attachment 1 - Processing Instructions
Attachment 2 - Program Information