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FREQUENTLY ASKED QUESTIONS
ASU Furlough/Voluntary Pay Reduction Program
for Classified Staff, Service Professionals and Administrative Staff
GENERAL LEAVE GUIDELINES |
All staff MUST participate in the program |
ADDITIONAL QUESTIONS? |
What is a furlough?
A furlough is a time or pay reduction program typically used in lieu of a reduction in force to meet an urgent budget reduction.
All employees are required to participate regardless of the source of funds (state funds and non-state funding) and employment category, except for the following classifications:
- Postdoctoral Scholars
- Student Workers
- Graduate Students (RA/TA)
- Faculty Associates
- Certain grant-funded positions UPDATED 2.6.09
GET MORE INFO
UPDATED 2.13.09 Can I volunteer to reduce my pay instead of participating in the furlough program?
Yes, if you are an exempt, salaried employee, you may volunteer to reduce your pay by the equivalent value that the University would save if you took the furlough days applicable to your category of employment (see below). If you volunteer to reduce your pay, you must sign up electronically through MY ASU. If you choose this option you can maintain your regular work schedule. You can take time away, coordinated with your supervisor. The days away do not have to correspond to when pay is reduced (e.g. you could take 3 days away during spring break, but the ongoing reduction is just 1 day per pay period).
Staff who are hourly (non-exempt) must participate in the furlough program. They cannot choose the voluntary pay reduction option due to limitations in how the program is administered.
| UPDATED 2.13.09 |
NOTE: You have until Feb. 27 to decide if you want to participate in the voluntary pay reduction program.
You may also change your election up to that date. GET MORE INFO
How many days am I required to take off?
The amount of mandated furlough time for each employee is defined below and may be prorated based on FTE, and/or number of months worked during a year.
CLASSIFIED STAFF
Each classified staff member is required to take 10 days (or equivalent hours based on FTE-80 hours for 100% FTE) of non-paid leave.
SERVICE PROFESSIONALS
Each service professional staff member is required to take 12 days (or equivalent hours based on FTE-96 hours for 100% FTE) of non-paid leave.
ADMINISTRATIVE STAFF (including Deans, VPs and the President)
Each administrative staff member is required to take 15 days (or equivalent hours) of non-paid leave.
PART-TIME EMPLOYEES UPDATED 2.8.09
Other than those identified above, part- time employees (including non-benefits eligible) are also subject to a pro-rated furlough and schedule.
EXAMPLE: A weekly part-time employee who normally works 32 hours per week would be furloughed 6.4 hours per pay period for a total of 76.8 hours for the furlough program (or as the employee/department elect). Work schedules may need to be adjusted to achieve the pro-rated furlough requirement. Please work with your supervisor on the total number of days (equivalent hours) required.
ON-CALL/SEASONAL EMPLOYEES (PRN)
Other than those identified above, on-call/seasonal employees (PRN) are not subject to the furlough provisions of this policy due to as-needed call-in status. The hours of work for these employees should be reduced in amounts commensurate with the furlough amounts of regular employees.
When does the furlough program begin and end?
This furlough program will begin Jan. 30, 2009 (pay period 1.26.09 – 2.8.09) through June 30, 2009 (pay period 6.29.09 – 7.12.09). .
When I take a furlough day(s), will I be expected to make up hours or work during regular work days?
When a furlough day(s) is taken, you cannot “add” hours to other days in that work week unless you have volunteered to reduce your pay as described above. The net effect must be a reduction of hours equivalent to the amount of furlough days you take.
Supervisors will establish a furlough schedule with their employees to adjust workload and/or deadlines within their reduced-hours schedule.
EXAMPLE: Individual works 40 hours a week, 8 hours a day, MON-FRI. If they take Monday as a furlough day (8 hours) they can work no more than 32 hours in the remaining days during that work week. Supervisors and employees should come to agreement as to how they will reduce the workload to accommodate this schedule reduction.
Can I choose which days and/or weeks to furlough?
Each department/unit director, chair or dean will establish a furlough schedule constructed to minimize disruption of regular operations. To the extent possible, the department/unit head or dean will develop this schedule in consultation with employees.
Can I use vacation or sick time or compensatory time during the furlough day(s)?
No. The purpose of the furlough is to reduce expenses and provide a means to address critical operating expense shortfalls caused by a reduction or elimination of funds.
Can I continue to use vacation or sick time or compensatory time on non-furlough days? Added 3.12.09
Yes. As always, the days you take as vacation or compensatory time should be approved by your supervisor so as to accommodate impacts on your department operations.
While on furlough, can I perform my duties elsewhere (telecommuting) or be on-call?
No. On a furlough day, no work is permitted unless you have volunteered to reduce your pay as described above.
Am I allowed to travel on ASU business while on a furlough day? UPDATED 2.17.09
Non-exempt, hourly employees should not travel on ASU business while on a furlough day.
Exempt, salaried employees may travel on ASU business at any time.
If I am on a compressed work schedule, can I schedule the furlough day on a day that is an unscheduled work day?
No, furlough hours/days must be taken during regularly scheduled work days regardless of work schedule. In general, any week in which a furlough day(s) is scheduled, that week will be converted to a regular 5-day/40-hour work week so that the employee may furlough hours as necessary to meet the 12 day (96 hours or prorated as appropriate) requirement.
At the discretion of the department and based on operational needs, the employee’s current compressed workweek may need to be suspended for the duration of the furlough program.
Do I have to take a furlough day as a full day or can I take partial days?
Furlough days can be taken in full days or partial days as established by the department/unit head to minimize disruption to regular operations of the unit. To the extent possible, the unit director/chair will develop the schedule in consultation with employees.
How do I record a furlough day?
Furlough days are to be recorded in PeopleSoft Time and Labor by both non-exempt and exempt staff using an unpaid earnings code FLH for hourly and FLS for salaried. It is the responsibility of each employee to ensure that all required furlough hours are recorded prior to June 30, 2009 (or the end of your academic contract). Please work with your supervisor on the total number of days (equivalent hours) required.
READ THE PROCESS GUIDE.
Are these days tracked?
Yes, all voluntary pay reductions or furlough days will be monitored and tracked. All staff will be required to take their required reduction before June 30, 2009.
What happens if I have unused furlough days before the end of the respective furlough program?
All employees, except those on academic year appointments, who have not designated all of their furlough days by June 1, 2009 shall have the remaining balance of furlough days set by their supervisor.
If I am a new hire during this furlough program, am I required to participate in this program?
Yes, new hires with a hire date between January 30, 2009 and June 30, 2009 will be prorated and required to participate in this furlough program.
What happens if I am working multiple jobs? Do I have to take a furlough day for each of these jobs?
No. The furlough is based on a per pay period basis; therefore, you would have to work with each of your supervisors to determine when you would take your furlough day so it can be rotated and not affect business operations.
The furlough is stated in a total number of days 15/12/10/9. If I am working a part time schedule, do also I participate?
Yes, you and your supervisor will be required to identify a day (using a pro-rated furlough schedule) during each pay period that will be your designated furlough day.
Can employees volunteer to take more hours in lieu of another employee having to take the full mandatory time required?
No. Each employee will be required to take the time identified.
What impact will this have if I currently have garnishments being taken out of my check?
Garnishments that are based off percentages will be reduced as the wages will be reduced. Examples of these garnishments are: Creditors Garnishments (Writ), Student Loans, State and Federal Levies, and Wage Assignments.
What impact will this have if I currently have child support being taken out of my check?
These amounts will not be reduced as this is a monthly court order with a set dollar amount that we are obligated to take.
Can I request a furlough day prior to OR after an observed holiday OR in conjunction with my vacation?
Yes. The furlough day is still considered “active pay status”; therefore it will meet holiday pay requirements as defined in SPP 703-01 – Holiday Leave.
Employees should follow department procedures to request vacation and furlough days. As noted above, vacation accrual is not affected by this furlough program.
If I have been notified of a Reduction in Force (RIF), will I be required to participate in this furlough program?
Yes, affected RIF employees (classified staff) will be required to participate in this furlough program.
If I have been notified of a non-renewal of my appointment (service professional and administrative professionals), will I be required to participate in this furlough program?
Yes, employees who have been notified of non-renewal of their appointment (service professionals and administrative professionals) will be required to participate in this furlough program.
Can I grieve this action?
No, the authorization of a work furlough program is not subject to a grievance.
BENEFITS, LEAVES AND RETIREMENT QUESTIONS
General Benefits
Will this impact my benefits (employer/employee) contributions and coverage?
Employer provided benefit coverage will continue without interruption. Units would still incur the full cost of the bi-weekly contribution; the employee contribution portion would remain the same and employees would be required to continue to make contributions to these plans (any unpaid employee contributions due to non-paid furlough days will be placed in arrears and taken from the next pay check).
Benefits and retirement plans that calculate contributions on a percent of salary or per pay period basis (e.g. life, disability, and mandatory retirement plans) may have a slight impact due to the non-paid furlough day.
All regular accruals of leave plans will continue at the pre-Furlough Program rates, and this program will not impact service dates for any other benefit or recognition program.
Health, life, and disability coverage will not be reduced, except the ASRS LTD benefits might be impacted slightly.
May I stop or change my health and life plans?
No, unless you have a qualified life event. The Furlough Program is not a qualifying event under the tax regulations governing health and life programs.
May I stop or change my Health Care or Dependent Care Flexible Spending Accounts?
No, unless you have a qualified life event. The Furlough Program is not a qualifying event under the tax regulations governing FSA programs.
What benefits or retirement plans may I stop to reduce my payroll deductions?
Voluntary Benefits Plans – MetLife Home/Auto; ReliaStar Life; Unum Long-Term Care; or your Short-Term Disability plans.
IMPORTANT: Re-enrollment may require evidence of good health and may result in higher premiums.
Voluntary Retirement Plans – 403(b) Plan and 457(b) Deferred Compensation Plan
Am I eligible for unemployment compensation while participating in this furlough program? UPDATED 2.10.09
Arizona State University has been approved to participate in the Shared Work Program, which provides for a partial unemployment compensation.
NOTE: You cannot participate in unemployment compensation if you take the pay reduction option.
Retirement –Mandatory and Voluntary Programs
Will this impact my retirement contributions and payable benefits?
Your contributions to the mandatory retirement plans (ASRS, ORP, and PSPRS) are a percentage of salary and will be reduced due to the non-paid furlough day.
Lower ORP contributions will reduce amounts directed towards your investment accounts.
Your contributions to the voluntary retirement plans (403(b) and 457(b) Deferred Compensation) are a flat dollar amount and will not be reduced due to the non-paid furlough day.
ASRS and PSPRS pension benefits are based on an average salary at the end of your employment; therefore, the impact to your pension would be minimal, if any. The average salary used to determine your benefits are calculated as follows:
- ASRS uses your highest consecutive 3- or 5-year salary in your last 10 years of credited service. Read the ASRS Special Notices for more information at www.azasrs.gov/web/pdf/Special_Notice_FSRP.pdf and www.azasrs.gov/web/pdf/Fact_Sheet_Furloughs.pdf
- PSPRS uses your highest consecutive 3-year salary in your last 20 years of credited service.
May I purchase the unpaid furlough days through the ASRS Service Purchase Program?
No, because your furlough is less than one month. To learn more about this, and the potential costs, visit the ASRS website at www.azasrs.gov/web/index.do, select the “Forms” category, and use the Service Purchase Calculator.
Can I reduce my employee contribution toward my mandatory retirement program (ASRS or ORP or PSPRS) during the duration of the Furlough Program?
No. The mandatory retirement plans require contributions at a specified percentage of salary or wages. The effective amount of your employee contribution will be slightly lessened because of the reduction in pay resulting from the Furlough Days; however, the employee or employer contribution rates stipulated by plan provisions and State statute cannot be changed.
Can I change the amount of my current ASRS Payroll Reduction Agreement for service purchase?
No. The payment amount installments due to ASRS are established in the separate written agreement that you have with ASRS. Should you have any questions regarding the Agreement, you should speak directly with an ASRS representative.
| UPDATED 2.6.09 |
Information for Certain Grant-funded Positions
Exclusions for Faculty and Staff on Certain Grant-funded Positions
- Exemptions from the furlough will be provided to employees who are exerting effort at 90% or greater during the furlough period on externally-funded sponsored projects and whose awards end on June 30, 2009.
- If effort is exerted at 90% or greater on externally-funded sponsored projects and the award terminates BEFORE June 30, 2009, the furlough will be prorated. In other words, the prorated share of the furlough must be taken after the award terminates and before June 30, 2009.
EXAMPLE: If a person is funded at 90% or greater effort for half of the furlough period and funded for the remaining time on state funds, then the person will be required to take 50% of the applicable furlough after the award’s termination.
- If an award expires AFTER June 30, 2009, the furlough must be taken even by those whose effort is being expended at greater than 90%. Exemption requests will be reviewed by the respective Deans and forwarded to the Provost, who will consult with the Executive Vice President and CFO, and the Vice President for research and then convey the decision to the requestor. The same process will be followed by Biodesign, Flexible Display and GIOS, except the request will go to the Vice President for Research, who will consult with the two Executive Vice Presidents.
FREQUENTLY ASKED QUESTIONS
If I am paid by sponsored research do I have to participate?
Yes, this program applies to all staff, unless you have been paid over 90% on a sponsored research project since July 1, 2008, and will continue at that level of effort through the Award’s termination date or June 30, 2009, whichever comes first.
What if my sponsored project terminates before June 30, 2009?
If effort is exerted at 90% or greater on externally-funded sponsored projects and the award terminates BEFORE June 30, 2009, the furlough will be prorated. This means the prorated share of the furlough must be taken after the award terminates and before June 30, 2009.
EXAMPLE: If a person is funded at 90% or greater effort for half of the furlough period and funded for the remaining time on state funds, then the person will be required to take 50% of the applicable furlough after the award’s termination.
What if my sponsored project terminates after June 30, 2009?
If an award expires AFTER June 30, 2009, the furlough must be taken even by those whose effort is being expended at greater than 90%. Exemption requests will be reviewed by a committee composed of the Executive Vice President and University Provost, Executive Vice President and CFO and Vice President for Research. Forward requests to the provost.
MORE INFO: Changing My Election UPDATED 2.13.09
I initially selected the Voluntary Pay Reduction Program, but have since decided that the Furlough Program would be a better choice, can I change my selection? Yes, you can change your decision regarding which program you will participate in; BUT, this option is only available until Friday, February 27. After that date, your choice is irrevocable.
To change the decision, if a user has already enrolled, first Log in to MyASU. Under “My Compensation”, click on the ‘Payroll’ tab. Next, click on the “Furlough” link presented, then click on the “Thanks for volunteering” link. You will see the disclaimer and at the bottom of the document is a statement:
“You have chosen to enroll in the Voluntary Pay Reduction Program.
If you would like to revoke this decision and revert to the Furlough Program, click here.”
When you click on the “click here” hotlink, a Revoke Enrollment button becomes available. After revoking enrollment, from MyASU, you would again click on the “Furlough” link, then the “Voluntary Pay Reduction Program” link, at which point the disclaimer is once again displayed for you to select either “Yes, enroll me” or “No thanks." Selecting “No Thanks” will then enroll you in the Furlough Program.