1. UNIVERSITY OF CALIFORNIA

2. Rehired Retiree Appointment Madelyn Bello HR Policies Analyst August 2010 v. 7

3. Rehired Retiree Appointment | 08.06.2010 | v. 7 Workshop Objectives To understand the terms and conditions of the Rehired Retiree Appointment. To understand counting hours for career employment status and counting hours for Health and Welfare and UCRP eligibility. 3

4. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehired Retiree Appointment Rehired retirees are employees who have retired from the Laboratory or a University of California campus or retired from LLNL or LANL while a UC employee. Conditions of employment must be consistent with any restrictions imposed by the retirement system and in accordance with guidelines for rehiring retirees issued by the University of California Office of the President. 4

5. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehired Retiree Appointment There are two types of rehired retirees: –UCRP monthly paid rehired retiree. – Lump sum cash out rehired retiree. UCRP retirees are rehired into the “rehired retiree” classification. – May be rehired as a career or term appointment employee if they waive their retirement benefit. Lump sum cash out retirees are rehired into the rehired retiree classification only (as of 1/1/09). –Not allowed to be rehired into any other employee classification. –Prior to 1/1/09, was able to be hired as career, term, or limited employees. 5

6. Rehired Retiree Appointment | 08.06.2010 | v. 7 6 Retiree Legalities Employee must separate from employment before receiving retirement benefits (IRS Code). Cannot receive retirement benefits from UCRP and work in a UCRP eligible position at the same time (IRS Code). No pre-planned retirements (IRS Code). –30 days wait. No returning to the same job!!! (IRS Code). –May return to: Help transition job with a clear end date. Train new hire. Do special project (hard to find special skills). Cannot be excluded as a class from UCRP (ADEA).

7. Rehired Retiree Appointment | 08.06.2010 | v. 7 7 Rehired Retiree Appointment Reaching 900 hour limit. – Terminate employment. May return in same appointment after a break of at least 120 calendar days (clears hours limit). – Or wait until hours fall off. Rehired Retiree may not work above 900 hours. –The Medicare Secondary Payer (MSP) program is designed to reduce costs to the Medicare program by requiring other insurers of health care for beneficiaries to pay primary to Medicare. If a Rehired Retiree works over 43% in a year, UC must provide primary benefits to the employee instead of Medicare. If a Rehired Retiree works over 43% in a year, they become enrolled in UC’s CORE Benefit Plan. Which means, their Health and Welfare benefits are greatly reduced. –If the Rehired Retiree works beyond 1,000 hours, their employee classification defaults to career.

8. Rehired Retiree Appointment | 08.06.2010 | v. 7 8 Policy Our Rehired Retiree Policy is in compliance with UC policy. –UC policy takes into consideration IRS & Medicare concerns. Terms & Conditions of employing retired employees changed effective January 1, 2009. Retirement payments determine employee classification –Lump sum retiree = Rehired Retiree –Monthly paid retiree = Rehired Retiree –Monthly paid retiree & stopped monthly payments = Career or Term Appointment

9. Rehired Retiree Appointment | 08.06.2010 | v. 7 9 Policy Reemployment of retired employees must be for Laboratory need. For example, –Needed expertise (unique skills and knowledge) on a project; –Named as a PI or co-PI on a funding grant; –Providing experienced support to a project; –Educate the next generation of scientists and engineers; –Train their replacement. Break in service at least 30 calendar days (IRS requirement) –There has to be a clear intent to separate from Lab employment. –Break in service means there has to have been a termination action.

10. Rehired Retiree Appointment | 08.06.2010 | v. 7 10 Policy Reemployment as a Rehired Retiree is up to 12 months. –Appointment renewals may be requested. –Appointments greater than 365 days is considered an exception to policy. –For example, an appointment from 3/1/2009 thru 3/1/2010 is over 365 days; 3/1/2009 thru 2/28/2010 is within policy. Employment as a Rehired Retiree is up to 43%. –Rehired Retiree works up to 900 hours in a 12-month period. There are no extensions beyond 900 hours. –Ideally, Rehired Retirees work no more than 43% at any one time.

11. Rehired Retiree Appointment | 08.06.2010 | v. 7 11 Policy NOTE: Appointments over 43% time during any length of time provide eligibility to Rehired Retirees for UC- sponsored employee medical coverage (Core Benefits), which makes Medicare become the secondary payer.

12. Rehired Retiree Appointment | 08.06.2010 | v. 7 12 Policy If employing a Retired Employee into a career position (such as the same position held before retirement or another vacant career position), the job must be posted and a search begun within 30 days of the vacancy being created and a minimum 30-day recruitment period must be held.

13. Rehired Retiree Appointment | 08.06.2010 | v. 7 Hours Limit Appointment duration. 900 regular hours in a rolling 12-month period. Qualifying service includes all time on pay status in one or more limited appointments. On-call and overtime hours shall not be included as pay status hours when computing qualifying service. Normally, 1 year appointment, renewable. % Effort – Full-time, Part-time, or Variable. Recommend to hire as variable. % Effort Variable—max 43%. TOOL: HRIS’ Limited hours reports. 13

14. Rehired Retiree Appointment | 08.06.2010 | v. 7 Hours Limit Track hours by running the Limited Hours Report for Employee Status. 14

15. Rehired Retiree Appointment | 08.06.2010 | v. 7 Section 1: Berkeley Lab Mission SUBTITLE HERE IF NECESSARY Hours Limit Reaching 900 hour limit. Terminate employment. May return in same appointment after a break of at least 120 calendar days (clears hours limit). Or wait until hours fall off. Request to work above 900 hours. Divisions may request for an employee to work beyond the 900 hours (up to 960 hours). Complete the Retired Employee Approval form requesting the exception to the 900 hour rule. Provide rationale for exception. Provide work plan: what will the employee accomplish with the extra time. If approved by CHRO & Deputy Lab Director, new max is up to 960 hours. 15

16. Rehired Retiree Appointment | 08.06.2010 | v. 7 Hours Limit 16 NOTE: Approvals must be obtained prior to working over 900 hours. NOTE: This will be reported as an exception to UCOP as an exception to policy. Send a copy of the completed form to the HR Policies Analyst. NOTE: Watch out for time being entered late into LETS!

17. Rehired Retiree Appointment | 08.06.2010 | v. 7 Managing Hours – for example JAN 2010 Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 100 FEB Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 200 MAR Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 300 APR Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 400 MAY Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 500 JUN Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 600 JUL Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 700 AUG Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD - 800 SEPT Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD – 900 OCT Worked 0 hours TOTAL HOURS IN 12 MONTH PERIOD - 900 NOV Worked 0 hours TOTAL HOURS IN 12 MONTH PERIOD - 900 DEC Worked 0 hours TOTAL HOURS IN 12 MONTH PERIOD - 900 JAN 2011 Worked 0 hours TOTAL HOURS IN 12 MONTH PERIOD - 900 FEB Worked 0 hours TOTAL HOURS IN 12 MONTH PERIOD – 800 (Jan 2010 hours fall off) MAR Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD – 800 (Feb 2010 hours fall off) APR Worked 100 hours TOTAL HOURS IN 12 MONTH PERIOD – 800 (Mar 2010 hours fall off) 17

18. Rehired Retiree Appointment | 08.06.2010 | v. 7 Probationary Period Does not need to serve a probationary period. If converted into a career or term (> 1 year) appointment without break in service, hours served in a rehired retiree appointment counts toward the 6 month probationary required. – If in same job and working for the same supervisor. – NOTE: 1,000 hours is one week less than 6 months (assumes full-time). –For represented jobs, check the collective bargaining agreement for probationary period language. 18

19. Rehired Retiree Appointment | 08.06.2010 | v. 7 Probationary Period Language for Rehired Retiree to Career Change of Status Posted Reclass – non-represented Non-posted Reclass – non-represented Conversion after reaching 1000 hours in a 12-month period. Same probationary period language as Posted Reclass – non-represented 19

20. Rehired Retiree Appointment | 08.06.2010 | v. 7 Probationary Period Language for Limited to Career Change of Status Posted Reclass – represented Non-posted Reclass – represented Conversion after reaching 1000 hours in a 12-month period SX, CX, RX, TX – credited up to 6 months of Limited Appointment for probationary period SX, CX, RX, TX – credited up to 3 months of Limited Appointment for probationary period KB SX, CX, RX, TX, KB - Recruited for career appointment – hired as Limited pending visa approval 20

21. Rehired Retiree Appointment | 08.06.2010 | v. 7 21 Eligibility for Salary Increases Rehired Retirees are not eligible for salary increases. May request a pay adjustment if below salary range or upon division request. NOTE: If they are in a exempt position, they are treated as a non- exempt employee.

22. Rehired Retiree Appointment | 08.06.2010 | v. 7 22 Probationary Period Does not need to serve a probationary period. If converted into a career or term (> 1 year) appointment without break in service, hours served in a limited appointment counts toward the 6 month probationary required. – If in same job and working for the same supervisor. – NOTE: 1,000 hours is one week less than 6 months (assume full-time).

23. Rehired Retiree Appointment | 08.06.2010 | v. 7 23 Health and Retirement Benefits Rehired Retirees receive their health and retirement benefits from their retirement plan.

24. Rehired Retiree Appointment | 08.06.2010 | v. 7 24 Vacation Accruals Rehired Retirees are not eligible to accrue vacation.

25. Rehired Retiree Appointment | 08.06.2010 | v. 7 25 Sick Leave Accrual Rehired Retirees are not eligible to accrue sick leave.

26. Rehired Retiree Appointment | 08.06.2010 | v. 7 26 Layoff Rights / Separation Notice Rehired Retirees may be released at any time at the discretion of the Laboratory. – The employee shall be notified of the release in writing. Refer to RPM 2.21 Terminations.

27. Rehired Retiree Appointment | 08.06.2010 | v. 7 27 Professional Development Education Opportunities. – Position-related programs – rehired retiree employees are NOT eligible. – Career-related programs – rehired retiree employees are NOT eligible. Tuition Reimbursement. – Rehired retiree employees are NOT eligible. UC Reduced-Fee Enrollment Benefit. – Rehired retiree employees are NOT eligible.

28. Rehired Retiree Appointment | 08.06.2010 | v. 7 Professional Development Paid Leaves of Absence. – Rehired Retiree employees are NOT eligible. Professional Renewal Leave. – Rehired Retiree employees are NOT eligible. 28

29. Rehired Retiree Appointment | 08.06.2010 | v. 7 Practice LBNL does not allow defaults to Career (Full-level) Benefits. Manage employees to 900 hours. By exception with CHRO’s approval, manage to 960 hours. If employee becomes eligible for Career (Full-level) Benefits, prepare ePAF for change in benefits level and send to Benefits Department. –Contact Benefits Department to coordinate change in benefit levels. –Prepare a Change of Status memo to notify employee of their change in Benefits and their Period of Initial Eligibility (PIE). 29

30. Rehired Retiree Appointment | 08.06.2010 | v. 7 30 Process Hiring a Rehired Retiree –Lump sum retiree Retired Employee Approvals form –Monthly paid retiree Retired Employee Approvals form UC Retirement Plan Waiver and Release –Monthly paid retiree who stopped payments (hire into a career or term appointment) Retired Employee Approvals form Talk with Benefits regarding process to stop monthly retirement payments NOTE: Maintain copy of completed Retired Employee approvals form in a place that can be easily accessed.

31. Rehired Retiree Appointment | 08.06.2010 | v. 7 31 Process In hiring anyone, carefully check the resume or CV and employment application to see if they have worked for LBNL or UC before and have retired from LBNL or UC. If they retired, the rehired retiree policy applies to them.

32. Rehired Retiree Appointment | 08.06.2010 | v. 7 32 Process Change of status from Rehired Retiree to Career or Term Appointment Employee –Retired Employee Approvals form –Upload completed form into ePAF Extension of a Rehired Retiree Appointment –Retired Employee Approvals form –Upload completed form into ePAF Extension of a Retired Employee who was hired as a Term Appointment Employee –Retired Employee Approvals form –Upload completed form into ePAF

33. Rehired Retiree Appointment | 08.06.2010 | v. 7 33 Process Manage appointment end dates; don’t let appointment end dates expire. Manage hours worked; don’t let rehired retirees work beyond 900 hours. Run appointment end date query and limited hours reports on a frequent basis.

34. Rehired Retiree Appointment | 08.06.2010 | v. 7 Exceptions to policy Send completed Retired Employee Approvals forms with supporting documentation to the HR Policies Analyst. –These forms will be forwarded to UCOP. 34

35. Rehired Retiree Appointment | 08.06.2010 | v. 7 35 UCRP Rehired Retiree UCRP retirees who take a monthly pension payment must sign the UCRP Waiver. – UCRP Retiree have up to 21 calendar days from date of hire to sign. – Signing the waiver means the retiree waives rights to earn retirement service credit during term of rehired retiree employment. DOES NOT waive right to career appointment if works > 1,000 hours in rolling 12 month period. – Must be signed at time of each rehire as rehired retiree.

36. Rehired Retiree Appointment | 08.06.2010 | v. 7 36 UCRP Rehired Retiree Cannot make employment offer earlier than 30 calendar days after retirement. Retiree must not be rehired before 30 days. If waiver isn’t signed, hours count towards both retirement and employment. – Signed waiver stops the retirement count. Retiree can only be hired into the rehired retiree appointment. – May be rehired as a career appointment employee if they waive their retirement benefit.

37. Rehired Retiree Appointment | 08.06.2010 | v. 7 37 UCRP Rehired Retiree Waiver Copy in employee file. Original to Benefits Office. If refuse to sign, note on waiver, “REFUSE TO SIGN” copy to file, original to Benefits Office.

38. Rehired Retiree Appointment | 08.06.2010 | v. 7 38 PERS Rehired Retiree NOTE: IF REHIRING A PERS RETIREE, CONSULT WITH THE BENEFITS OFFICE FIRST!

39. Rehired Retiree Appointment | 08.06.2010 | v. 7 39 UCRP Lump Sum Cash out UCRP Lump Sum Cash out retirees may not sign waiver. May not return before 30 calendar days have passed. Offer cannot be made before 30 calendar days from retirement date. Retiree can only be hired into the rehired retiree appointment.

40. Rehired Retiree Appointment | 08.06.2010 | v. 7 Represented Employee Issues Collective Bargaining Agreements (CBAs). – Non-represented – Rehired Retiree Appointment. – Represented – Rehired Retiree Appointment. UCRP rules are in effect for represented employees too. These employees will appear as either “Rehired Retiree” in HRIS as their employee class. Restrict Rehired Retiree appointments to 900 hours. 40

41. Rehired Retiree Appointment | 08.06.2010 | v. 7 Hiring Issues Temporary staffing requires careful management. – For example, if you need to fill a position expected to continue beyond 1,000 hours but less than a year: Term appointment (for non-represented employees and for represented employees if allowed by CBAs). Contract worker. Job sharing Note: Use Rehired Retiree for temporary staffing but not in the same job  may jeopardize UCRP. 41

42. Rehired Retiree Appointment | 08.06.2010 | v. 7 Offer Letters and HRIS Be careful with employment offer letters. – Retain contingency language. “This appointment is subject to satisfactory job performance and continuing availability of work and funds.” – Be mindful of end dates stated in letters. “Rehired retiree appointment not to exceed 900 hours in a rolling 12-months period or until «Until_Dt» whichever comes first.” 42

43. Rehired Retiree Appointment | 08.06.2010 | v. 7 Offer Letters & HRIS HRIS must match offer letter (except in the case of a represented employee who is in a temporary appointment). Match benefits participation level with appointment type (refer to Benefits Matrix). – If Benefit participation level changes (rehired retiree to career or term appt): Send copy of PAF to Benefits Counsel employee regarding benefits change and document in status change letter. If benefit level goes up, send employee to the benefits orientation for more information. * If benefits level goes down, then have them contact Benefits Department. Offer letter prevails if there is a discrepancy. 43

44. Rehired Retiree Appointment | 08.06.2010 | v. 7 End Dates in HRIS for Rehired Retiree Appointments End dates for rehired retiree appointments must be entered into HRIS. –End date ensures the employee does not drop off the “screen”. 44

45. Rehired Retiree Appointment | 08.06.2010 | v. 7 Policies and Practices LBNL does not allow defaults to career appointments. Job postings are required for career and term appointments. Time spent in Rehired Retiree appointment do not qualify for a waiver of recruitment. 45

46. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehired Retiree to Career Appointment Default to Career Appointment. – If a rehired retiree appointee reaches 1,000 hours, they automatically default into a career appointment (UCRP). 1,000 hours on pay status in 12 consecutive months without a break in service of at least 120 consecutive calendar days. –A break in service is measured from separation date. –NOTE: if no separation date is recorded in HRIS, no break in service occurred. –NOTE: some union contracts provide for 3 months of probation credit if in “similar” position in addition to above provision. »Check CBAs and/or LER because each contract have slightly different wording. Career status effective date will be the first day of the month after employee accumulates the 1,000 hours. 46

47. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehired Retiree to Career Appointment Impact of conversion to career status. – All career appointments are eligible for salary increases. – Eligible for FULL benefits (if % effort is full-time or part-time 50% or greater). – Eligible for vacation accrual. – Eligible for sick accrual (or continue to accrue sick leave). – Rights to preferential rehire, recall, and severance pay. Receives a certain # of days notice of intent to layoff dependent on job title. 47

48. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehired Retiree to Career Appointment – Eligible for professional development. All education Opportunities. Tuition Reimbursement. UC Reduced-Fee Enrollment Benefit. – Eligible for PRT and Professional Renewal Leave. – Rights to expanded grievance rights. – Rights to “just cause standard” for termination. AND, they stop receiving their monthly pension checks! 48

49. Rehired Retiree Appointment | 08.06.2010 | v. 7 COUNTING HOURS FOR CAREER EMPLOYMENT STATUS AND BENEFITS and UCRP ELIGIBILITY.

50. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehire Employee into a Rehired Retiree Appointment - Counting Hours ReasonEmployee StatusHealth & Welfare Status Employee Classification Rehired Retiree Look BackRolling 12 Months Counter Resets120 Day Break365 Day Break 50

51. Rehired Retiree Appointment | 08.06.2010 | v. 7 Rehire Employee into a Rehired Retiree Appointment Counting Hours Duration of Break in Service Employee StatusHealth & Welfare Status Rehire Rehired Retiree > 4 months & < 12 months Start count at zero (0)Count work hours in last 365 days Rehire Rehired Retiree > 12 months Start count at zero (0) Rehire < 4 months Count Limited Appt. work hours in last 12 months 51

52. Rehired Retiree Appointment | 08.06.2010 | v. 7 The Two Counts CAREER EMPLOYMENT STATUS BENEFITS and UCRP (assumes break-in-service of greater than 4 months but less than 12 months) Why Count?If > 1000 hours become career If > 1000 hours membership into UCRP. Impact to Employee Career Status1. Eligible for UCRP membership which means eligibility to enroll in career (full-level) benefits. Impact to Lab Career Status1. Now: Insufficient funds to pay for increased benefit costs and no contribution into UCRP. 2. Later: Contributes into UCRP on behalf of employee. Note: org burdens may be insufficient to cover costs. 52

53. Rehired Retiree Appointment | 08.06.2010 | v. 7 The Two Counts CAREER EMPLOYMENT STATUS BENEFITS and UCRP (assumes break-in-service of greater than 4 months but less than 12 months) HR’s RoleTo monitor and prevent default to career employee status To monitor and prevent default to career (full-level) benefits ReportsLimited Hours – Employee Status report 1. Limited Hours – Benefit and UCRP Eligibility (for active employees) 2. Terminated Hours query (for inactive employees) -Hours in past rolling 12 months -Prompts: > date: enter date that is full 12 months prior to anticipated start date 53

54. Rehired Retiree Appointment | 08.06.2010 | v. 7 CAREER EMPLOYEE STATUS Career rehired as Rehired Retiree Rehired Retiree rehired as Rehired Retiree Rehired Retiree Hours as career do not count towards 900 hours Eligibility for Employee Status: < 120 day break-in-service count old hours > 120 day break-in-service don’t count old hours Eligibility for Employee Status: < 12 months break-in-service count old hours ReportsLimited Hours – Employee Status report 1. Terminated Hours query (email HRIS@lbl.gov to run query for you)HRIS@lbl.gov 2. Limited Hours Report 54

55. Rehired Retiree Appointment | 08.06.2010 | v. 7 HOW LONG IS 1,000 HOURS? Count is actual work hours in the month based on LETS time. –100% time = approximately 5.75 months. –50% time = approximately 11.5 months. –47.5% or lower time will not equal 1000 hours in a rolling 12 month period. 55

56. Rehired Retiree Appointment | 08.06.2010 | v. 7 Completing the Retired Employee Approvals Form 56

57. Rehired Retiree Appointment | 08.06.2010 | v. 7 57

58. Rehired Retiree Appointment | 08.06.2010 | v. 7 58

59. Rehired Retiree Appointment | 08.06.2010 | v. 7 59

60. Rehired Retiree Appointment | 08.06.2010 | v. 7 What other questions do you have?