Reduction in Force

Your benefits may be affected if you are subject to a Reduction in Force, also referred to as a "RIF" or "layoff." For additional information regarding the university's operating policy and regulations regarding a reduction in force, you may wish to review the Standard Practice Guide (SPG 201.72 for regular staff or SPG 201.72-1 for instructional staff). Staff members subject to the terms and conditions of collective bargaining agreements may wish to consult the specific provisions in their current agreements dealing with a reduction in force. Any provisions in such agreements that differ from the provisions stated here will govern.

If you have questions about your benefits, call the SSC Contact Center at (734) 615-2000 locally, or (866) 647-7657 toll free, Monday through Friday from 8 a.m. to 5 p.m.

Benefits Continuation While on Layoff

To continue coverage during your layoff, you must complete and return the Benefits Layoff Election form and make payment. Your Benefits Layoff Election form will be mailed to your home once the layoff paperwork has been processed by Human Resources. If you do not receive your Benefits Layoff Election form within two weeks from the start of your layoff, call the SSC Contact Center at (734) 615-2000 locally, or (866) 647-7657 toll free. The representative will provide you with information and instructions on continuing your benefits, including the amounts payable if you wish to continue coverage.

Health, Prescription Drug, Dental, and Vision Plans

You may continue health, prescription drug, dental, and vision coverage until the end of the 12th month following the month the layoff became effective, provided you remit payment of the full premium by the first of each month for that month's coverage. If you choose not to continue coverage, coverage stops on the last day of the month the layoff became effective. (Plans not continued will end on the last day of the month in which the leave begins, unless the leave begins on the first of the month, in which case plans will be canceled effective the leave begin date.) See Rates and Paying for Health Coverage for your U-M health plan rates while on layoff.

Managed Care Health Plans

If you are in a managed care plan (Health Alliance Plan HMO, U-M Premier Care, GradCare) and you are moving outside the service area of that plan for more than 60 days, you must change your health plan by completing and submitting a Moving Out of a Managed Care Service Area form. Coverage under the new plan will become effective the first of the month following receipt of the paperwork or the first of the month following the move date, whichever is later.

Life Insurance Plans

University Life Insurance Plan

Your University Life Insurance Plan coverage continues (at no cost to you) for up to 12 months following the month your layoff became effective.

Optional Life Insurance Plan

You may continue Optional Life Insurance Plan coverage until the end of the 12th month following the month the layoff became effective, provided you remit payment of the full premium by the first of each month for that month's coverage. If you choose not to continue coverage, coverage stops on the last day of the month the layoff became effective. (Plans not continued will end on the last day of the month in which the leave begins, unless the leave begins on the first of the month, in which case plans will be canceled effective the leave begin date.)

Dependent Life Insurance Plan

You may continue Dependent Life Insurance Plan coverage until the end of the 12th month following the month the layoff became effective, provided you remit payment of the full premium by the first of each month for that month's coverage. If you choose not to continue coverage, coverage stops on the last day of the month the layoff became effective.

Expanded and Basic Long-Term Disability

Expanded and Basic Long-Term Disability coverage stops on the day the layoff becomes effective.

Travel Accident Insurance

Travel Accident Insurance coverage stops on your last day actively at work before your layoff begins.

Retirement Savings Plans

All retirement savings plan contributions (employee and university contributions) stop with your last paycheck.

RIF status does not afford employees the ability to access Basic Retirement Plan employee or university contributions. If you have a 403(b) SRA or 457(b) Deferred Compensation Plan balance with TIAA-CREF or Fidelity (or both), you may be able to obtain a loan or possibly a hardship withdrawal. Contact TIAA-CREF and Fidelity for more information.

Flexible Spending Accounts (FSAs)

Health Care FSA

If you are participating in a Health Care FSA, the account will reimburse you for eligible claims up to the total annual amount you will contribute during the calendar year. Only expenses incurred while you are participating in the Health Care FSA are eligible for reimbursement. Therefore, if you have a balance in your account at the end of the month in which your leave or layoff began — and do not have sufficient claims incurred prior to the coverage end date to exceed that balance — you must continue after-tax contributions to receive reimbursement of future claims. If participation is not continued, your Health Care FSA will end at the end of the month in which your layoff began. You may resume participation upon your return to work.

Dependent Care FSA

Your participation in the Dependent Care FSA ends at the end of the month in which your layoff began. Federal regulations do not permit additional contributions to Dependent Care FSAs after your employment ends. You can continue to receive reimbursement for eligible expenses you incur before the end of the calendar year (up to the remaining balance in your account). Eligible expenses include only those that are necessary to enable you and, if you are married, your spouse to work. Generally, this means care provided while you are at work or actively looking for work. For your spouse, "work" can include self-employment, being a full time student, or being physically or mentally incapable of self-care.

Legal Plan

You may continue Legal Plan coverage until the end of the 12th month following the months the layoff became effective, provided you remit payment of the full premium by the first of each month for that month's coverage. If you choose not to continue coverage, coverage stops on the last day of the month the layoff became effective.

Reporting Changes

It is your responsibility to notify the Benefits Office of any changes of address or changes in family status for the addition or deletion of dependents within 30 days of the event. Changes may be reported by calling the SSC Contact Center at (734) 615-2000 locally, or (866) 647-7657 toll free. If you have a U-M retirement savings account, notify Fidelity and TIAA-CREF directly of any change of address. Call Fidelity at (800) 343-0860 or call TIAA-CREF at (800) 842-2776.

When You Return to Work

If you return to a benefits-eligible position, the Benefits Transactions team will re-enroll you in the same benefit plans and level of coverage you were enrolled in before your layoff. After Benefits Transactions processes your benefit elections, you can confirm your benefits re-enrollments in three ways:

  1. You will receive a Confirmation Statement within 30 days after you return to work that summarizes your benefits elections and the monthly payroll deductions taken for each. If you do not receive a Confirmation Statement within 30 days, call the SSC Contact Center.
  2. Review your paycheck stubs when you return to work to make sure that the proper deductions are taken. Promptly report any necessary corrections to the SSC Contact Center.
  3. View your benefits enrollments on Wolverine Access: Employee Self-Service > Benefits > Benefits Summary.

Any changes in dependent status that occur during the layoff must be reported within 30 days of your return, or if coverage was continued during the layoff, within 30 days of the event.

Health, Prescription Drug, Dental, and Vision Plans

If you continued coverage during your layoff: Your coverage continues.

If you did not continue coverage: You will be re-enrolled in the same plans and level of coverage you were enrolled in before your layoff. If you return to work in a new plan year and wish to make changes missed during the Open Enrollment period, call the SSC Contact Center within 30 days of your return to work date.

Life Insurance Plans

University Life Insurance Plan

Your University Life Insurance Plan coverage continues.

Optional Life Insurance Plan

If you continued coverage during your layoff: Your coverage continues.

If you did not continue coverage: You will be re-enrolled in the same plan and level of coverage you were enrolled in before your layoff. If you return to work in a new plan year and wish to make changes missed during the Open Enrollment period, call the SSC Contact Center within 30 days of your return to work date.

Dependent Life Insurance Plan

If you continued coverage during your layoff: Your coverage continues.

If you did not continue coverage: You will be re-enrolled in the same plans and level of coverage you were enrolled in before your layoff. If you return to work in a new plan year and wish to make changes missed during the Open Enrollment period, call the SSC Contact Center within 30 days of your return to work date.

Expanded and Basic Long-Term Disability

Expanded and Basic Long-Term Disability coverage resumes.

Travel Accident Insurance

Travel Accident Insurance coverage resumes.

Retirement Savings Plans

All retirement savings plan contributions (employee and university contributions) resume.

Flexible Spending Accounts (FSAs)

Health Care FSA

If you continued coverage during your layoff: Your coverage continues at the same level of participation you had before your layoff. Your remaining annual amount will be divided equally among your remaining paychecks. You may request to stop your FSA upon return from leave. Please complete a Health Care Flexible Spending Account change form.

If you did not continue coverage: You will be re-enrolled at the same level of participation you had before your layoff. If you return to work in a new plan year, you must call the SSC Contact Center within 30 days of your return to work date if you wish to participate in the Plan. Your coverage will become effective the first day of the month following the date you make the election.

Dependent Care FSA

You will be re-enrolled at the same level of participation you had before your layoff. Your remaining annual amount will be divided equally among your remaining paychecks. You may request to stop your FSA upon return from leave. Please complete a Dependent Care Flexible Spending Account change form.

If you return to work in a new play year, you must call the SSC Contact Center within 30 days of your return to work date if you wish to participate in the Plan. Your coverage will become effective the first day of the month following the date you make your election.

Legal Plan

You will be re-enrolled in the same plans and level of coverage you were enrolled in before your layoff. If you return to work in a new plan year and wish to make changes missed during the Open Enrollment period, call the SSC Center within 30 days of your return to work date.

If you have questions, call the SSC Contact Center at 5-2000 from the Ann Arbor campus, (734) 615-2000 locally, or (866) 647-7657 toll free, Monday through Friday from 8 a.m. to 5 p.m.