The UNC
Policy Manual
300.2.1[R]
Adopted
08/18/04
I. Principle.
Pursuant to State law [N.C.G.S. 135-40.2(a)(6)], when
a University campus or affiliated entity eliminates a job due to a reduction in
funds, unless otherwise exempt from this Regulation, the employee in that job
may be entitled to up to twelve (12) months of continued coverage by the State
Health Plan if he or she meets the eligibility criteria below for this coverage
to remain in effect. The University campus or entity shall continue paying
premiums for this coverage in accordance with the eligibility criteria listed
below. Elimination of an employee’s job
neither requires nor permits an employer to pay State Health Plan premiums for
dependents of the employee; however, the former employee may continue
dependents’ coverage under the same terms as current employees. At the
expiration of this coverage, former employees may pay the premiums for their
continued coverage and that of their dependents. There is no time limit as to
how long this coverage may be purchased. [See N.C.G.S. 135-40.2(b)(12).]
This regulation
explains who is eligible for continued coverage and provides information about
how campuses may ensure that coverage is properly provided to former employees
who meet the eligibility criteria.
II. Eligibility for Continued Coverage. The following
conditions must all be met for the employee to be eligible for continued
coverage.
A. The employee’s job must be
eliminated. This Regulation does not apply to an employee’s separation from a
job that does not result in the position being eliminated or abolished.
B. The job elimination must be due to a
reduction, in total or in part, of the funds used to support the job or its
responsibilities. This includes a reallocation of funds and elimination of the
position. The source of funds for the position does not affect eligibility for
this benefit, except if the appointment is contingent upon the availability of
funds. (See Ineligibility for Continued Coverage below.)
C. Employment for at least twelve (12)
months in a permanent full-time or permanent part-time (three/fourths time or
more) position by a University campus, an affiliated entity, and/or another
state entity (can be more than one), prior to the elimination of the job, is
required.
D. The employee must be participating in
the State Health Plan at the time of separation from employment due to
elimination of the job.
III. Ineligibility for
Continued Coverage. If any of the following conditions apply, the employee
will not be eligible for continued coverage.
A. An employee
working pursuant to a fixed term contract that ends at the same time as the
termination is not eligible for this coverage.
B. An employee who
was (a) paid in total or in part from non-state funding sources, and, (b) at
the time of the job elimination was working under an appointment letter or a
contract, either of which states that the job is contingent on the continuing
availability of funds is not eligible for this coverage.
C. An employee who
retires (withdrawal from active service with a retirement allowance from the
Teachers and State Employees Retirement System of North Carolina or the UNC
Optional Retirement Program) is not eligible for this coverage. In this case,
health insurance is provided through the retiree health insurance program.
IV. Procedure. Prior to communicating with the employee, a departmental
representative must contact the office responsible for either EPA or SPA
personnel, as appropriate, so that the personnel/human resources office may
review the circumstances to determine if the proposed job elimination is due to
a reduction in funds. If the personnel/human resources office determines that
this Regulation applies, that office will work with the department to ensure
that the employer-provided contributions to the employee’s State Health Plan
coverage are appropriately continued for up to twelve (12) months.
Additionally, the employing department must communicate in writing to the
employee that he or she is being separated due to the unavailability of funds
to support the position