POLICY NO: 616
EFFECTIVE DATE: 02/01/2002
LEAVE OF ABSENCE WITHOUT PAY
A leave of absence without pay may be granted to staff members for periods up
to one (1) year for personal reasons, such as attending to family matters, child
rearing or performing community service without loss of University service
credit and position.
Before approving or denying a leave request, the department head considers
the department's operating needs and the staff member's needs, job performance
and length of service.
When a request for leave is endorsed, the school/center will usually return
the staff member to active status in a similar or equivalent position, pay grade
and salary within the school/center at the end of the leave. The University
reserves the right to terminate a leave of absence or deny reinstatement at the
end of a leave of absence. A staff member has no greater right to conditions of
employment than if the staff member had been continuously in the workplace. For
example, the position of a staff member on an approved leave of absence may be
subject to position discontinuation in accordance with the University's Position
Discontinuation and Staff Transition Policy (No. 628).
An early termination of a leave of absence or denial of reinstatement must be
reviewed by the Division of Human Resources/Staff and Labor Relations prior to
any action by the department.
616.1 PROCESSING THE LEAVE REQUEST
- The request is submitted in writing to the immediate supervisor or the department head and specifies the length of the leave, not to exceed one (1) year, the dates and the reason for the proposed leave.
- The department head must forward copies of the endorsed leave request and departmental approval to Staff and Labor Relations and Benefits.
Questions concerning the handling of requests for leave should be referred to
Staff and Labor Relations at 215-898-6093.
616.2 BENEFITS CONTINUATION
During personal leaves without pay, there is no accrual of sick days or paid
time off days. Time while on leave is counted as service credit in determining
eligibility for those benefits that are dependent upon length of service.
The staff member's current coverage will automatically continue for Medical,
Dental, Vision, Life, and Long Term Care benefits during the leave unless the
individual contacts the Penn Benefits Center within 30 days of when the leave
begins. If the coverage continues, the staff member will be billed directly, at
full cost, on an after-tax basis for these benefits. Any other health and
welfare benefits in which the staff member participates (Accidental Death and
Dismemberment Insurance, and Health Care and Dependent Care Pre-Tax Expense
Accounts) will automatically be discontinued. However, the staff member may
continue to contribute to the Health Care Pre-Tax Expense Account at the current
annual coverage level through COBRA. If the staff member is interested in
continuing participation in the health care expense account, the staff member
must contact the Penn Benefits Center.
Once the staff member's Business Administrator has updated the payroll system
to reflect the change in status to Leave of Absence Without Pay, the Penn
Benefits Center will mail a personalized notice explaining the benefits
continuation process. The staff member is responsible for paying the full cost
of any benefits continued during the unpaid leave, and will be billed directly
from ADP COBRA Services, the University's third party administrator (exception:
billing for the continuation of Long Term Care insurance comes directly from John Hancock Life Insurance Company). Benefits are billed and paid monthly.
It is the staff member's responsibility to contact his/her Business
Administrator when s/he will be returning to work. Once the Business
Administrator has updated the payroll system to reflect the change back to
active status, the Penn Benefits Center will automatically reinstate all
benefits that were in effect prior to the unpaid leave*. Coverage will be
reinstated as of the first of the month following the month in which the
individual returns from leave. Please note: if the staff member returns to work
in a different plan year, they will be given the opportunity to enroll in the
benefits again. If the staff member wishes to make changes to his/her reinstated
elections, s/he must contact the Penn Benefits Center within 30 days of his/her
return.
If the University contribution is to be paid by the department, the
department must supply Benefits Accounting (215-898-7282) with a budget number
to charge; otherwise, the staff member must pay the full amount.
Questions concerning benefit continuation while on leave of absence should be
referred to the Penn Benefits Center at 1-888-PENNBEN (1-888-736-6236).
Staff members eligible for the Tax-Deferred Retirement Plan (TDR) prior to
their leave may continue to make TDR contributions (up to 5% of their pre-leave
base salary) on an after-tax basis. The University will match these
contributions (as long as the staff member has completed the 1-year waiting
period or has had this waiting period waived due to prior service credit), but
will not provide the TDR Basic Plan contribution during the leave. To make these
after-tax contributions, the staff member must complete an After-Tax Election
Form, and return this form along with a check for the first month's contribution
to the Benefits Office by the 15th of the month for which the contribution is
intended. After-Tax Election Forms can be obtained from the Benefits Office.
Contributions for subsequent months should be made by sending a check to the
Benefits Office by the 15th of each month.
*The long-term care insurance also will be reinstated upon the staff member's
return. If the staff member waived long-term care insurance during his/her
leave, s/he will have to reapply and supply evidence of insurability for this
benefit before it goes into effect. Acceptance is not guaranteed, and the staff
member may pay a higher premium based upon his/her age at the time of the
reapplication. Also, note that any changes to the staff member's long-term care
insurance will need to be coordinated through John Hancock Life Insurance Company.
616.3 UNIVERSITY STAFF WHO ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS
University employees covered by collective bargaining agreements should refer
to the appropriate article in their contract. However, employees covered by
collective bargaining agreements must contact the Penn Benefits Center to avoid
termination of benefits.
Applicability: All Regular Full and Part-Time Staff
Cross-reference: Policy 114, Policy 602, Policy 607, Policy 631
Supersedes Policy Number(s): 616 (06/01/1998), 616 (11/23/1998), 616 (07/01/2000)