Salary/FTE Changes

Title

Salary/FTE Changes

Policy

Policy Statement

HR Representatives should consult ConnectCarolina documentation for procedural information on changes in salary or FTEs, including providing required documentation. For additional procedural information, HR Representatives should contact their EHRA Non-Faculty HR Consultant.

Notifying Employees of FTE Changes or Salary Reductions

Whenever a permanent employee’s FTE changes (up or down) or salary is reduced, a letter must be prepared and provided to the employee specifying the changed FTE and the new annual salary per the FTE. This letter is signed by the authorizing University official, usually a Department/Center Head or Dean/Division office official. This letter, once acknowledged by the employee by signature, should be attached to the job change action. There is no required letter template for FTE and/or salary changes for EHRA non-faculty temporary or student employees. But it is recommended that departments communicate such changes in writing to the affected employees and maintain a copy of this correspondence in the employee’s departmental personnel file.

If the reason for a reduction in FTE or salary is loss of funding and the employee’s at-will or term appointment includes a valid contingency clause that was communicated in writing, no advance notice is required, but, unless unfeasible, a minimum 30-day written notice is suggested.

Absent a loss of funding and a valid contingency clause, at-will employees in their first year of service require a 30-day written notice of such changes, and at-will employees in their second or greater year of service require a 90-day written notice. If you are contemplating decreasing the salary or changing up or down the FTE of any term appointment employee prior to term end absent a funding contingency provision and a loss of funding, please consult with EHRA Non-Faculty Human Resources prior to implementing or communicating any proposed change.

Benefits Impacts of FTE Changes

If a current permanent UNC-Chapel Hill employee has an FTE change, the employee’s benefits may be affected. The appointing department should be aware of and discuss the benefits impacts of any FTE change with the affected employee to avoid any later misunderstandings regarding benefits eligibility. The following summarizes significant benefits issues related to employee FTE level:

• Health Insurance
  The University’s contribution towards health insurance premiums ceases when FTE falls below the .75 FTE level. Below .50 FTE (less than half-time), the employee also loses eligibility to participate in the State Health Plan entirely although an optional 18-month COBRA continuation period is available during which the employee must assume the full cost of coverage.
• State Retirement (TSERS or ORP)
  Below .75 FTE (less than three-quarter time), the employee is no longer eligible to participate in the State or University retirement plans including the associated University contributions. It should also be noted when the employee’s FTE falls below this level, the applicable mandatory employee retirement contribution deductions to these plans also cease. Employees can continue to participate in the University’s optional 403b supplemental retirement savings plan but this plan does not feature any University contributions.
• Vacation and Sick Leave Accrual
  Below the 1.0 FTE level (less than full-time), the employee’s annual and sick leave accrual is pro-rated based on the FTE level. Below the .50 FTE level, the employee is not eligible for any leave accrual and any unused leave must be paid out at appointment end. Leave payout should be accomplished by a lump sum payment action in ConnectCarolina following processing of the applicable Job Change action.
• Other Benefit Programs
  Eligibility for various other University benefit programs are reduced or cease at the .75 and .50 FTE levels respectively. The benefits portion of the Human Resources web site may be consulted for specific eligibility information for each individual benefit or a Benefits Consultant can be contacted for assistance.

If the appointing department or the affected employee has questions regarding the benefits impacts of an FTE change, the department’s assigned Benefits Consultant should be consulted in the Office of Human Resources. The affected employee should be encouraged to make contact with a Benefits Consultant as soon as possible.

Contact Information

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