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DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
Bureau of Human Resources

June 12, 2007

HUMAN RESOURCES MEMORANDUM 3-07

TO:     AGENCY HEADS, SERVICE CENTER DIRECTORS, HUMAN RESOURCE REPRESENTATIVES

SUBJECT:   EXTENSION OF VOLUNTARY COST SAVINGS PROGRAMS:  JULY 1, 2007 – JUNE 30, 2009

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The Voluntary Cost Savings Programs have been extended by the Legislature (Public Law 2007, Chapter 240, Part M) and are available for participation through June 30, 2009.  Agencies must notify employees of this extension and distribute the program information provided in this memorandum to employees as soon as possible.

PROGRAM DEFINITIONS

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 Program 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.

APPLICATION GUIDELINES

1. Employees must complete the FY 2007-2009 application form, Per 115 (5/07).  Note: The form Per 115 (5/07) application form for FY 2007-2009 is available on the Bureau of Human Resources homepage under “Forms.”  If a VCSP application form from a previous fiscal year is used for programs that start on or after July 1, 2007, please edit the old form to show the correct fiscal year dates. 

2.  Participation in the Voluntary Cost Savings Program is subject to the approval of the appointing authority, in accordance with the impact that participation will have on operational needs.

3.  Agencies must respond to employee requests for participation in the Voluntary Cost Savings Program 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.

4.  Project employees, temporary (acting) employees, and intermittent employees are not eligible to participate in the Voluntary Cost Savings Program.  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.

5.  Formal human resource and position processing actions are required for all approved applications except sporadic days off.  See Attachment 1 for processing instructions.

6.  Applications that are approved for participation in the Voluntary Cost Savings Program other than sporadic days off must be submitted to the Office of the State Controller with the MFASIS forms necessary to start this participation. See Attachment 1 for processing instructions. 

CHANGE TO APPROVED PARTICIPATION DATES

1.  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.

2.  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

1.  Agencies must complete a savings estimation for each application received using the Voluntary Programs Worksheet, form Per 108J (5/07).  Savings must be calculated for VCSP applications that are either approved or denied.  Note:  Form Per 108J is available on the Bureau of Human Resources homepage under “Forms.”

2.  If the terms of participation are changed after the worksheet has been submitted, agencies must submit a revised worksheet to reflect the revised savings.

3.  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.

4.  Submit completed worksheets to the Office of the State Controller as applications are received, regardless of the program starting date.  Retain a copy for department files.

S/ Alicia Kellogg

Alicia Kellogg, Director
Bureau of Human Resources

Attachment 1 - Processing Instructions
Attachment 2 - Program Information