Employment Status Change
For benefit purposes, a change in employment status means moving from one benefits eligibility category to another. This usually involves a change from ineligibility to eligibility or vice versa, part-time to full-time employment (20 - 29 hours per week to 30+ hours per week) or from SPA to EPA status or vice versa.
General Rule
Employment status changes cause a new 30-day window to open during which conditional changes to benefit plans may be made (depending on the type of status change). The 30-day window begins with the effective date of the change. Staff and faculty members are encouraged to contact a Benefits Counselor as soon as possible for instructions and information about making changes. Employees who change from ineligible to eligible status may be required to attend New Employee Orientation.
Retirement System
Retirement plan participation is mandatory for employees with a status of 0.750 FTE or greater. Benefits-eligible EPA faculty and staff are granted an additional 30 days to select either the Teachers' and State Employees' Retirement System (TSERS) or the Optional Retirement Plan.
Once the choice of retirement system is made, the election is irrevocable. Failure to select and enroll in a specific plan will result in default enrollment into the Teachers' and State Employees' Retirement System. Faculty or staff who experience a status change to below .75 FTE should contact a Benefits Counselor for information about retirement account options.
Health Benefits
Eligibility to participate in the State Health Plan begins at 0.50 FTE (20 or more hours per week). Part-time employees (20 and 29 hours per week) may participate by paying the full premium cost through convenient payroll deduction. Full-time employees (30+ hours per week) are eligible for the University's contribution toward health coverage (dependent premiums are payroll-deducted).
NCFlex Benefits
NCFlex benefits are available to employees with an employment status of 9 months or more per year at .50 FTE or greater. In general, a status change between full and part time (or vice versa) does not impact the cost of NC Flex benefits; however, the maximum allowable life insurance amount is 5 times the base annual salary and might require adjustment. Flexible spending account contributions may be adjusted as a result of a status change.
MetLife Group Term Life Insurance
If a status change occurs during the year, MetLife coverage and premiums will change effective January 1 of the following year to reflect the new base annual salary. Spouse's coverage cannot exceed an employee's, so an adjustment may be required if there is a significant decrease in salary.
Supplemental Retirement Plans
Faculty and staff may contribute to supplemental 403(b), 403(b)(7) and/or Deferred Compensation (plan 457) with an employment status of 0.50 FTE or greater. Participation in the state-sponsored 401(k) is available with an employment status of 0.75 FTE or more.
Long-Term Disability Coverage
Employees with a status of 0.75 FTE (30+ hours/week) or greater are eligible for long-term disability coverage through Liberty Mutual or Standard. Based on the status change, coverage may end the first of the month following the status change date. Newly eligible staff and faculty will be granted a 30-day enrollment window (60 days, if EPA).
Forms and Instructions
Certain benefit plans require forms completion when a change in employment status occurs. NCFlex changes may be made through the NCFlex OnLine system.
Contact your Benefits Counselor for instructions, if you experience a change in employment status.
Continuation and Portability
Employees who become ineligible for coverage will receive COBRA, continuation or portability information directly from the plan, mailed to the home address. Click here to change your address.
