East Carolina University Faculty Manual

PART VI.

GENERAL PERSONNEL POLICIES

II. Welfare and Benefits

A. Hospitalization Insurance

Hospitalization insurance is provided for full-time or half-time permanent employees through a statewide self-insured program known as the State of North Carolina Comprehensive Health Benefit Plan and HMO’s as approved for the service area. The university will contribute a set amount governed by the State Legislature for employee's premium for those who have a three-quarters or above permanent appointment. If the cost for individual coverage is higher than what the State Legislature has approved for payment, the employee will pay the difference. However, half-time permanent employees must pay their entire premium through payroll deduction if they wish to be covered. All eligible employees may also insure their dependents by payment of premium through payroll deduction. The employee may enroll or make changes in coverage by visiting the department of Human Resources. The new employee may gain coverage on the first of the month following the date he or she begins work or on the first of any succeeding month. The only exception would be an employee starting in August with a nine-month contact. This employee will receive his/her first paycheck in September and therefore coverage would be effective the first of October. The employee may start coverage September 1st but must pay the full cost. If an employee enrolls when first eligible for coverage, there is no waiting period for basic coverage. The only exception would be if the employee was being rehired within 12 months of separation as a state employee and did not continue health insurance coverage. If the employee terminates employment with the last workday occurring during the first half of the month, hospitalization coverage will cease at the end of that same month. If the employee works as many as half or more of the workdays of a month that termination of employment occurs, hospitalization coverage may be extended through the following month.

B. Disability Income Plans

1. North Carolina Plan

a. Short-term Benefits

A participant is not entitled to receive any benefits from the plan for a period of sixty continuous calendar days from the onset of disability. The benefits are payable after the conclusion of the waiting period for a period of 365 calendar days provided the participant meets the following requirements:

1) at least one year of contributing membership service in the retirement system earned within thirty-six calendar months preceding the disability,

2) be found to be mentally or physically disabled for the further performance of the usual occupation, and

3) disability must have been continuous and incurred at the time of active employment. The monthly short-term benefit will equal 50 percent of 1/12th of the annual base rate of compensation last payable prior to the beginning of the short-term benefit period. The monthly benefit will be reduced by any monthly payments received for workers' compensation (excluding permanent partial workers' compensation awards).

b. Long-term Benefits

Payable after the conclusion of short-term disability period or after salary continuation payments cease, whichever is later, for as long as the participant is permanently disabled, but not after the participant becomes eligible for an unreduced service retirement, provided he or she meets the following requirements:

1) have at least one year of contributing membership service in the retirement system earned within ninety-six calendar months preceding the disability, prior to the end of the short-term disability period.

2) make application to receive long-term benefits within 180 days after the conclusion of the short-term disability period or after salary continuation payments cease, whichever is later,

3) be certified by the medical board to be mentally or physically disabled for the further performance of usual occupation,

4) disability must have been continuous, likely to be permanent, and incurred at the time of active employment, and

5) not eligible to receive an unreduced retirement benefit from the Teachers' and State Employees' Retirement System.

During the first thirty-six months of the long-term disability period, the monthly long-term benefit will equal 65 percent of 1/12th of the annual base rate of compensation that was last payable prior to the beginning of the short-term benefit period. The monthly benefit will be reduced by any monthly payments received for workers' compensation (excluding permanent partial workers' compensation awards) and by any primary social security benefits the participant may be receiving; however, the benefit payable will be no less than ten dollars a month. Employees apply for benefits through the university department of Human Resources. When the employee terminates employment with the university or state, membership in the plan automatically terminates.

2. TIAA Group Long-Term Disability Insurance Plan

The TIAA Group Long-Term Disability Insurance Plan is offered only to employees with academic rank who are members of the optional retirement program. The employee may subscribe voluntarily and make payment of the premium through payroll deduction. The computation of premium will be based upon total monthly compensation used for deduction of ORP retirement contributions to include summer school pay. Highlights of the plan are:

a. Pays a regular income when disabled and cannot work after a 90 day waiting period.

b. Replaces up to 66 2/3% of your monthly wage base, to a maximum of $10,000 per month.

c. Protects retirement by providing a contribution equal to monthly contributions to the ORP carrier for investment.

d. Reflects occupation in determining if disabled, as well as paying benefits if working but unable to earn full wage base as a result of disability.

e. Pays benefits for as long as disability continues up to the age 65 or even longer if disabled after age 60.

f. Pays a benefit to dependent if participant dies after receiving disability benefits.

g. Allows conversion to an individual policy if participant terminates employment.

3. Liberty Mutual Disability Insurance

Available to members of the Teachers’ and State Employees’ Retirement System. This is a long and short-term disability insurance plan. This is designed to fill in the gaps of the State’s disability plan- for the first year of employment (since there is no coverage available under the State’s plan); as a supplement during the State’s short-term period before and after five years of service; and, in the event your salary exceeds the covered maximum salary limit under the State’s short-term and long-term benefit periods. Liberty’s long term disability insurance is designed to supplement the State’s benefit up to a level of 66 2/3 percent of salary to a maximum benefit of $10,000 per month (reduced by payments from other sources).

C. Mandatory Enrollment in Group Life Program

All new permanent employees employed at least 75% are required to enroll in the ECU Group Life Program which is based on age and salary at full cost to the employee. Preexisting conditions are waived upon initial enrollment. An employee may request cancellation of the policy and receive a refund of all premiums for his or her individual coverage if requested within 60 days of the effective date of coverage. The policy may be canceled after that date but no refund of premiums will be granted.

D. Group Insurance Plans

University employees who hold a permanent appointment on a 50% basis or above may subscribe to various types of group insurance by voluntary payment of premiums through payroll deduction. The university department of Human Resources is responsible for coordinating insurance plans offered to university employees as underwritten by these companies. Anyone interested in any of these plans should contact the university department of Human Resources for more information. The various group plans are life insurance (such as level term, decreasing term, permanent cash value, accidental death and dismemberment), disability income insurance, dental insurance, cancer coverage insurance, and intensive care insurance.

E. Social Security

All university employees, with the exception of students, are subject to the provisions of the Federal Social Security Act that requires a percentage contribution subject to the current Social Security law. This is a separate contribution from the state retirement that cannot be withdrawn. The amount paid by the employee will be matched by the university. All state-owned agencies and institutions are considered one employer under the Social Security law; therefore, if the employee receives earnings from more than one agency or institution within the calendar year, it should be brought to the attention of the university payroll department. Social Security benefits may be claimed at the age of 62; however,

these benefits will be lower than the benefits received at age 65, which is the age at which maximum benefits may be claimed. Retirement benefits under the Social Security law will be based on average earnings beginning with 1937, or beginning with 1951, whichever will allow the higher benefit. There is also provided a broad program of health insurance called Medicare for people 65 years of age and over. One part of Medicare is hospital insurance, which helps pay for hospital care and certain follow-up services. The other part is voluntary medical insurance, which helps pay physician's fees and other medical bills. More detailed information may be obtained from the local Social Security administration office.

F. Deferred Compensation Plan

The NC State Legislature approved in 1971 the establishment of a deferred compensation for state employees whereby a portion of earnings could be deferred by investment in the plan that would result in a deferment of federal and state taxes. If any employee is interested in the plan, he or she should contact the department of Human Resources for additional information.

G. Supplemental Retirement Income Plan of NC (401K)

The State of North Carolina sponsors this plan through legislation enacted by the General Assembly, which has given responsibility for the plan to the Department of the State Treasurer and a board of trustees. A portion of an employee's earnings may be deferred by investment in the plan that would result in a deferment of federal and state taxes. This plan is similar to the benefit available under Internal Revenue Code 403(b). Any employee interested in the plan should contact the department of Human Resources for additional information.

H. Tax Deferred Annuity

Section 403(b) of the United States Internal Revenue Code provides that the employees of East Carolina University may contractually reduce their current compensation for the purchase of an annuity. This enables an employee to make tax-deferred monthly contributions of a fixed amount to a company of their choice. These contributions may be made through payroll deduction and are exempt from the state and federal withholding taxes until the annuity benefits are paid. Employees interested in the annuity plan should contact the department of Human Resources.

I. US Savings Bonds

Government bonds may be purchased through the payroll savings plan by employees who are paid bimonthly. Applications may be acquired from the university department of Human Resources.

J. Unemployment Compensation Benefits

All university employees except student help are insured against loss of work when it occurs due to lack of work. The department of Human Resources will issue to the employee, upon termination of employment, a separation notice that may be used to file a claim at the North Carolina Employment Security Commission for any benefits due under the law. Unemployment insurance is for unemployed workers who are qualified, ready, and willing to work, and who are actively trying to find work. It is not for persons who are unwilling or unable to work, or for those who are on vacation or those who are ill.

K. Vacation and Sick Leave

Personnel with professorial rank who have twelve-month employment contracts may earn leave as authorized by the vice chancellors and chancellor but under a different leave policy from that provided for SPA employees. Teaching faculty who have a nine-month employment contract do not earn any vacation or sick leave. All full-time permanent SPA employees who work one-half or more of the regularly scheduled workdays in any month shall earn vacation and sick leave. Part-time, permanent SPA employees who are employed on a continuing basis for a fixed number of hours each week in a permanent budgeted position for as much as half-time shall earn vacation and sick leave on a pro-rata basis if work is performed for one-half or more of the scheduled workdays in a month. Some administrative personnel who are exempt from the State Personnel Act (EPA) may also earn vacation and sick leave under the same leave policy as applied to SPA employees. This is limited to certain full-time administrative and professional personnel, such as the chancellor, vice chancellors, deans, and their associates. The amount of leave that may be earned each month and the conditions for its use are described in the ECU Business Manual

L. Workers' Compensation

All university employees, including paid student help, are covered by workers' compensation that provides for certain benefits in the event there is an on-the-job accident, causing injury. If and when an on-the-job accident causing injury should occur, it should be reported immediately to the university safety and health office. Responsibility for claiming compensation is on the injured employee. Any claim filed by the employee must be made through the university health and safety office with the North Carolina Industrial Commission within two years from date of injury; otherwise, the claim will be barred by law. The university is considered a self-insured employer and will be responsible for all claims

as approved by the NC Industrial Commission. The employee should not pay for drugs and treatment received or charge it against personal hospitalization insurance coverage. Although the university will pay for prescribed drugs, physician's fees, and hospital charges as approved, there will be a waiting period of seven calendar days from date of injury before any weekly worker's compensation can begin for loss of work. Faculty members are required to report to the administration any hazards to safety and any accidents or other unusual occurrences or emergencies that may be of general concern.

M. Flex Reimbursement Accounts

Employees may set aside money before taxes (Federal, State, and FICA) from their salary to be used for medical and dependent care expenses. This is a reimbursement account for use by employees.