STANFORD UNIVERSITY Leaves Overview This presentation only provides highlights of the various plans available to faculty and staff. In the event of a conflict between these highlights and the actual policies, contracts and plan documents, the policies, contracts and legal plan documents will govern. These plans are subject to change. Human Resources Data Services revised 04/091

Non-Disability Related Leaves  Leaves can be Paid or Unpaid –If the employee receives any compensation while on leave (e.g., HAP, HAS, BON, RTS)* the leave must be a paid leave to generate a check  Typical Leaves the local area handles are –Seasonal Layoff (always Unpaid) –Sabbatical –Military Leave –Personal Leave (always Unpaid for Staff) *Housing Allowance Program, Housing Allowance Supplement, Bonus, Retroactive Salary revised 04/09 2

 Administrative Leave for Staff –Is not entered into PeopleSoft HRMS (PS) –Used only under special circumstances –Must always be approved by Employee & Labor Relations (HRG for SoM) –Requires documentation –May require associated payroll steps  For Academic Staff-Teaching, Lecturers, Senior Lecturers, and Artists-in-Residence, see the Faculty Handbook, Chapter 7 revised 04/09 3 Non-Disability Related Leaves

Disability Related Leaves  Family Medical Leave (FML) –Job protection  Family Sick Leave (FSL) –15 days of accrued sick leave per calendar year may be used for close family illness or injury (see Admin Guide 22.6 for definition of “close family”)  Family Temporary Disability (FTD) –Bonding or family care  Short-Term Disability (STD) – for employees not residing in California  Voluntary Disability (VDI) – Short Term Disability for employees residing in California and not participating in State Disability revised 04/09 4

Disability Related Leaves  Long-Term Disability (LTD) –Employees may become eligible for LTD benefits after 90 days on VDI or WC. Claim must be approved by Liberty Mutual prior to issuance of benefits  Workers’ Compensation (WC) –Submit forms to Risk Management  Refer to –Disability & Family Leaves, Admin Guide Memo 27.7 –Sick Time, Admin Guide Memo 22.6 revised 04/09 5

RolesandResponsibilities 6

The Communication Circle  Continuous full-circle coordination and communication is required for successful management of any disability-related leave –Division Leave Contacts –Manage PS HR records user –Time and Leave Administrator –Benefits (health and welfare, retirement plans may be affected) –DLS (Disability & Leave Services) –Employee –Manager/Supervisor –HRM/HRA/DFA –Vendor –Payroll revised 04/09 7

Employee Role  Contact Manager and HR Division contact as soon as possible regarding a leave  Work with HR Division contact in communicating leave with appropriate insurance vendor (Liberty Mutual and/or Zurich if it is a work-related injury leaves) –Employees might be eligible for FML and/or VDI benefit when they are on Workers’ Compensation  Maintain contact with appropriate vendor, physician and HR Division contact regarding status for duration of the leave revised 04/09 8

Vendor Role  Intake and process necessary information regarding leave from employee or HR Division contact.  Communicate frequently with employee, HR Division contact and DLS regarding status of leave (new, extension, approval, denial, etc), type of leave, duration of leave and amount of benefit  Determine FMLA eligibility  Work in conjunction with Zurich/Liberty Mutual to determine if an additional weekly benefit amount needs to be awarded. revised 04/09 9

HR Department/ Division Contact Role  Counsel employee on available leave types  Inform employee/faculty member on how pay and leave balances will be affected while on leave  Work with DLS, Employee Relations and vendors to answer employee questions and concerns  Work with DLS and vendors regarding information and updates to employee’s claim  Ensure employee communicates as needed to vendors and department managers  Report claim to Liberty Mutual if employee or family member has not or is not able to start the claim  Provide departmental managers information regarding claim using Liberty Mutual and/or DLS reports  Complete and submit all necessary Workers’ Compensation paperwork as required by Risk Management revised 04/09 10

Employee Relations/ HRG (for SoM) Role  Provide consultation regarding leave policy and practice  Develop documentation for departments as needed  Review (with department HR Contact and/or supervisor), requests for accommodations  Coordinate the “interactive process”  Approve extended leaves beyond one year  Review/approve denial of leave beyond FML and terminations revised 04/09 11

Disability & Leave Services (DLS) Role  Process and administer all disability leaves (short term, long term, family medical, family temporary disability, workers’ compensation) –This includes processing all PeopleSoft actions, employee timecards, calculation for employee’s salary continuation and supp pay transactions as needed –Provide HR division contacts with Salary Continuation Projections as requested –Inform HR division contact of any over or underpayments  Point of contact for vendors and SU management  Audits between SU data and vendor data  Clear, concise internal reports revised 04/09 12

DLS Leave Management Process  DLS Analysts receive leave notification from: –Liberty Mutual –Zurich (Workers’ Compensation Carrier) –Unum (for claims originating between 1/1/05 and 12/31/07) –Stanford HR Division Contact revised 04/09 13

DLS Leave Management Process  Upon receiving notification, DLS Analyst manages the employee leave cycle: –Creates electronic leave file –Inputs/updates data into PeopleSoft HRMS and Axess Timecard –Continuous contact with Stanford HR Division Contacts leave vendors regarding status, hours worked, etc. –Ensure employee’s pay is correct and does not exceed pre- disability rate when all income sources are combined revised 04/09 14

DLS Reports  DLS uses approximately 20 reports for disability leave for job, payroll, and timecard information using Hyperion  DLS also has the following published report for all HR Division Contacts revised 04/09 15

DLS Reports (continued) revised 04/09 16 Stanford,Jane

Handouts and References  What to do if you become sick or disabled…Faculty  What to do if you become sick or disabled…Staff  Liberty Mutual authorization card (VDI, LTD, FTD, FML) revised 04/09 17

Get Forms or Additional Information  Go to Benefits  Click on the Medical & Life Link  Click on Disability Link  Or, go directly to bin/health_and_life/disability/ revised 04/09 18

revised 04/09 19 Benefits Website

revised 04/09 20 Medical & Life Link

revised 04/09 21 Disability Benefits

Federal andState Job Protections revised 04/09 22

Key to Next Slide  FMLA – Family Medical Leave Act  CFRA – California Family Rights Act  PDL – Pregnancy Disability Leave  LOA – Leave of Absence  FTD – Family Temporary Disability Insurance  The next slide (slide 24) references job protections only and does not indicate how an employee will be paid while on the leave of absence. Slide 25 indicates how an employee will be paid while on leave and indicates the associated job protections while on that particular leave. revised 04/09 23

revised 04/09 24 FMLA, CFRA and PDL Know the Difference All Disabilities, except Pregnancy if eligible FMLA & CFRA Up to 12 wks/3 months-if eligible Job protected by law FMLA & CFRA run concurrently End of 12 Weeks Return to work Personal LOA (with Department approval) Job protected by Stanford, not law Could be terminated Maximum 12 weeks/3 months Pregnancy Disability (PDL) – if eligible – FML Up to 16 weeks/4 months Job protected by law PDL starts even if not eligible for FML Off Pregnancy Disability if eligible – CFRA Up to 12 weeks/3 months Job protected by law FTD starts here (not a leave, just $) Maximum 28 weeks/7 months (only if FML eligible)

Typical Maternity Leave Pregnancy Disability Leave (PDL) PrePartum Pregnancy Disability Leave (PDL) PostPartum Family Temporary Disability (FTD) Mandatory Vacation Family Temporary Disability (FTD) Balance of Bonding Leave Typically begins 1 to 4 weeks before expected delivery date Requires Dr. statement Using Sick, PTO, Floating, Vacation hours to augment insurance benefit. Typically 6 to 8 weeks after delivery date (based on delivery type & Dr. certification) Requires Dr. statement Using Sick, PTO, Floating, Vacation hours to augment insurance benefit. Maximum 80 hours or all available vacation time (The 80 hours is prorated for part-time). May only use Vacation hours. If no vacation hours, FTD begins immediately. There is no disability benefit during this period. May be up to 6 weeks after FTD Mandatory Vacation. May be used up to 1 year after birth of child. Requires Bonding Certificate. Only PTO, Floating and Vacation hours can be used to augment insurance benefit. May be up to 4 weeks after the FTD Leave. Requires 1 year service of 1,250 hours. May only use PTO, Floating, Vacation hours. No disability benefit during this period. revised 04/0925 Protected under CA Pregnancy Disability Leave (PDL) Protected under CFRA (CA version of Federal Family & Medical Leave Act- FMLA) if eligible, 12 weeks beginning 1 st day after PDL ends Protected under FMLA (if eligible), 12 weeks beginning on 1 st day of leave

Salary Continuation/ Salary Supplement revised 04/09 26

Admin Guide 27.7 Sec 2.a (page 2) revised 04/09 27

Admin Guide 27.7 Sec 3.f  f. Augmenting Workers’ Compensation Payments – Employees may receive both paid leave and disability plan benefits concurrently, not to exceed the employee’s base pay. After the initial five work days of disability, accumulated sick, PTO, floating holiday and vacation time will be used, in that order, to supplement Workers’ Compensation benefits. Thus the employee continues to receive income equivalent to full pay.  g. Role of Data Management Services – Disability and Leave Services (DLS) updates Kronos/Peoplesoft HRMS records each pay period for all employees on absences due to work-connected disability. DMS make certain that combined income from disability payments and Stanford does not exceed pre-disability pay and keep accurate records of leave time used. revised 04/09 28

Salary Continuation  What is it? –Salary Continuation is when a staff employee who is out on leave has accrued leave hours available to augment any payable insurance benefit. –Accrued leave hours are used to augment the difference between the insurance benefit and the employee’s normal pre-disability pay rate. Salary Continuation allows the employee to receive 100% of their pre-disability salary rate when all income sources are combined revised 04/09 29

Salary Continuation ( continued )  How is this done? –Based on the employee’s bi-monthly salary and the daily insurance rate, the amount of accrued leave hours is calculated for each pay period. This amount changes each period based on the number of calendar days and working days in that pay period. –An electronic feed is uploaded each pay period from PeopleSoft HRMS absence pages into the employee’s timecard The upload includes Leave Without Pay – Vendor Benefit hours (hours = daily benefit rate x number of calendar days in a given pay period / employee’s hourly rate) and Salary Continuation Hours revised 04/09 30

Salary Supplement – Faculty and Clinician/Educators  What is it? –For the first 90 days of an approved VDI leave, the department supplements the difference between VDI payment and appointment salary  How is this done? –The amount of the VDI/FTD benefit is deducted via the Supplemental Pay Panel in PeopleSoft each pay period. This amount will change each period based on the total number of calendar days on leave each period. revised 04/09 31

C/E Time Off With Pay  1 st 90 days = VDI + supplement with salary  After 90 days = VDI + LTD + supplement with time off with pay if available  Maternity Leave: –1 st 90 days the same –FTD, use of 2 weeks “vacation” not required before eligible –During FTD, can use time off with pay to supplement FTD benefit  Time Office with Pay—22 days (176 hours), based on average number of work days in a month; pro-rated based on FTE revised 04/09 32

Benefits of Being on VDI  Employee Benefits –Receives a weekly Benefit check from Liberty Mutual –Using a benefit that your employee is paying taxes for each paycheck –VDI benefits are tax free income –FTD benefits are State tax free income (Federal taxable) –Employee’s Stanford salary is reduced possibly further reducing their overall annual tax liability –Job protection if approved for FML/CFRA –Staff employees use less leave time per day than if not on leave  Departmental Benefits – Salary savings –Salary base is decreased by amount of the VDI benefit –Most Salary Continuation dollars are charged to the central pool revised 04/09 33

Payment Schedule  The following is a list of when checks are processed for each of the different types of payable benefits, once a claim has been approved for payment: –Short Term Disability (STD or VDI) – weekly, issued by Liberty Mutual –Family Temporary Disability – weekly, issued by Liberty Mutual –Workers’ Compensation – every 14 days based on the start date of the claim, issued by Zurich –Long Term Disability – monthly, issued by Liberty Mutual for claims originating after 1/1/08 and pre-2005, Unum for claims originating between 1/1/05 and 12/31/07 –Stanford University – twice monthly (7 th and 22 nd ), as long as the employee has leave time available for salary continuation revised 04/09 34

revised 04/0935 Salary Continuation Projection

Overpayments/Underpayments  Based on information received from vendors and/or HR Division contacts, employees’ pay is processed each pay period  Overpayments and/or Underpayments occur when: –Notifications are sent to DLS after the close of a pay period with start dates beginning in a closed period – employee will receive pay from insurance benefit as well as full Stanford salary. –Begin or End dates of a claim are changed after initial notification (example – days not covered by medical certification)  In addition to a possible overpayment or underpayment, the effective date is critical for benefits and compliance –Example: Stanford makes full benefit contributions for an FMLA covered leave and makes no benefit contributions for a Personal leave revised 04/09 36

Overpayment Form revised 04/09 37 This detailed overpayment explanation is sent by DLS to the HRM HRM explains the overpayment to the employee Employee signs the Repayment Agreement on page 2 of the document (see next slide) The form must be signed within 10 days and submitted to payroll for action

Overpayment Form Page 2 revised 04/09 38

On behalf of Benefits, HRG/Employee Relations, and Disability & Leave Services THANK YOU! revised 04/09 39