Short-Term Furlough, Reduced Hours and Your Benefits

Your benefits may be affected if you are subject to a temporary, short-term layoff (furlough) or reduction in hours. A unit may implelment a furlough when necessary to meet temporary budget or operational needs without eliminating positions. Staff members on furlough are still U-M employees and may return to their position on a pre-arranged date. 

The Standard Practice Guide gives a written description of the short-term layoff (furlough)/short-term effort reduction (SPG 201.73). 

Benefits Continuation 

The university will continue to make contributions toward your U-M insurance coverage during the period of a short-term layoff (furlough)/effort reduction.

Life insurance, long-term disability, health, dental, vision, and legal plan coverage will continue during the period of short-term layoff (furlough) or effort reduction, as long as payments/payroll deductions for the monthly premiums continue.  

If you are enrolled in a Flexible Spending Account, you are responsible for your annual election amounts.

If coverage has been discontinued for the period of furlough, your coverage will be reinstated when you return to a benefits-eligible position.

All retirement savings contributions are discontinued while on short-term layoff (furlough). If you are on a reduced-hour appointment, contributions will continue at a percentage of your reduced salary.

Visit Short-Term Furloughs and Reduced Hours for additional information and answers to frequently asked questions about your benefits.