Life Events - Reduction in Force (RIF)

The information below explains how your benefits are affected if you experience a Reduction in Force, 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 201.72-0 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 HR 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 HR 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.

If your return to a benefits eligible position, the Benefits Transactions team will automatically re-enroll you in benefits. See When You Return to Work for more information.

The following summary indicates what happens to each of your benefits when you go on layoff.

Benefit Plan Benefits Options
Health and Welfare Plans
Medical
Dental
Vision
Prescription Drugs
You may continue 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.* For more information on participation in a managed care plan, refer to Managed Care Plans below.
University Group Term Life Insurance Your coverage continues (at no cost to you) for up to 12 months following the month your layoff became effective.
Optional Life Insurance
You may continue 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.*
Dependent Life Insurance You may continue 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 Coverage stops on the day the layoff becomes effective.
Travel Accident Coverage stops on your last day actively at work before your layoff begins.
Retirement Savings Plans

RIF status does not afford employees the ability to access Basic Plan employee or university contributions.  If you have an SRA and/or 457b plan balance with TIAA CREF and/or Fidelity, you may  be able to obtain a loan and/or possibly a Hardship Withdrawal.  Contact TIAA CREF and/or Fidelity for SRA and/or 457b loan/hardship withdrawal requirements.

Basic Retirement Savings Plan All contributions stop with your last paycheck.
Tax-Deferred Supplemental Retirement Account (SRA) and 457(b) plans All contributions stop with your last paycheck.
Other Benefits
Health care Flexible Spending Account Only expenses incurred while you are participating in the Plan are eligible for reimbursement. You may continue participation in the Plan by making contributions to the account on an after-tax basis. If this is the case, you may receive reimbursement of claims incurred during your layoff. If participation is not continued, your Health Care Flexible Spending Account ends at the end of the month in which your layoff began. For more information, refer to Health Care Flexible Spending Account.
Dependent Care Flexible Spending Account Your participation in the Dependent Care Flexible Spending Account ends at the end of the month in which your layoff began. Federal regulations do not permit additional contributions to Dependent Care Flexible Spending Accounts 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).
Hyatt Legal Plan You may continue 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.
Long Term Care You may continue making payments directly to the plan. Call the SSC HR Contact Center for information.

* 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.

**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.

Managed Care Plans

If you are in a Health Maintenance Organization (HMO) or the U-M Premier Care plan and you are moving outside the service area of that plan for more than 60 days, you must change coverage to BCBS Community Blue PPO or Comprehensive Major Medical (CMM) 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.

Health Care Flexible Spending Accounts

If you are participating in a Health Care Flexible Spending Account, 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 Flexible Spending Account 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 Flexible Spending Account will end at the end of the month in which your layoff began. You may resume participation upon your return to work.

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 HR 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/or TIAA/CREF directly of any change of address. Call Fidelity at 1-800-343-0860 or call TIAA/CREF at 1-800-842-2776.

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 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.

The following summary indicates what happens to each of your benefits when you return to a benefits eligible position.

Benefit Plan Benefits Options
Health and Welfare Plans
Health Plan
Dental Plan
Vision Plan
Prescription Drugs
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.

University Group Term Life Insurance Your coverage continues.
Optional Life Insurance 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 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 Your coverage resumes.
Travel Accident Your coverage resumes.
Retirement Savings Plans
Basic Retirement Savings Plan

Contributions resume.

Tax-Deferred Supplemental Retirement Account (SRA), and 457(b) plans Contributions resume.
Other Benefits
Health Care Flexible Spending Account 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 Flexible Spending Account

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.

Hyatt 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.
Long Term Care Your long-term care coverage will continue as long as you continue to make payments to the plan. If you stopped making payments, call the plan to resume coverage.

If you have questions, call the SSC HR 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.

LOA/RIF Monthly Medical Insurance Costs

Paying for Your Benefits