Reduction in Force (RIF)
A Reduction in Force (RIF) occurs when changing priorities, budgetary constraints, or legislative actions require the University to abolish positions. A RIF can also occur when a position changes so significantly that the employee is no longer able to perform the required duties.
A reduction in force decision requires an evaluation of the need for particular positions and the relative value of work performed by specific employees so that the university can continue to provide the highest level of service possible with a reduced work force. Determining the retention or separation of an employee includes an evaluation of the relative skills, knowledge, and productivity of the employee in comparison to necessary services. Length of service and other factors are also considered but receive less weight in the determination. The department determines priority for reduction in force within the following guidelines:
- Temporary employees performing the same work must be terminated before any employee with a probationary or permanent appointment, provided that a probationary or permanent employee can perform the temporary employee’s tasks.
- Employees with probationary appointments as well as trainees with less than six months’ service must be terminated before any employee in the same or a related classification with a permanent appointment, provided that the permanent employee can perform the tasks of the probationary employee or trainee.
- Reduction in force of permanent employees is based on the following factors:
- Which positions are most vital to the department in the delivery of services
- Relative skills, knowledge, and productivity of employees
- Length of service of employees
- Consideration of equal employment factors to avoid adverse impact on the university’s affirmative action goals.
Your Employment Rights
The following information applies to SPA employees (full-time and part-time) holding permanent appointments, employees with trainee appointments who have completed six months of service, and employees who attained permanent status prior to entering a trainee appointment. Temporary employees, probationary employees or employees with time-limited permanent appointments may be separated without following the reduction in force procedures.
Notification
Before a reduction in force occurs and after receiving Human Resources' approval, the department provides the following information, in writing, to the employee(s) being laid off:
- The reason for the reduction in force.
- The effective date of the reduction in force (at least 30 days following notification date).
- Direction to contact Human Resources to obtain necessary information on: benefits options, the university’s policy on priority reemployment, completion of necessary application forms, aid in seeking other employment, and eligibility to apply for Unemployment Insurance benefits.
- The amount of severance pay due, if any.
- The right of permanent employees to appeal the reduction in force through the SPA Employee Grievance and Appeal Procedure
Priority Reemployment
RIF employees with career status have priority re-employment rights to the same appointment type, salary grade, band/level, and salary rate held at the time of official written notification. Career status applies when an employee has a permanent appointment and has been continuously employed by the State of North Carolina in an SPA position for the immediate 24 preceding months. If minimum qualifications for a position are met and the candidate can perform the job in a reasonable length of time, including normal orientation and training given any new employee, a state agency must offer a vacant position prior to employing another person who is not a current state employee. RIF priority does not apply when the only applicants considered for the vacancy are current state employees.
12-month priority begins the date written notification of separation is received.
To claim priority for re-employment in the state system, candidates must submit employment applications to Human Resources (online) and the Office of State Personnel. Once this occurs, Human Resources and the Office of State Personnel provide re-employment assistance.
The priority remains in effect for 12 months from the date of written notification of separation. Acceptance of a position at a lower salary or band/level does not affect priority. The decline of an offer to a lower salary grade/band does not affect priority. Employees who decline interviews or offers of employment for positions at the same or a higher salary grade or band/level within 35 miles of the original work station lose priority.
Retirement Option
If an employee decides to retire or apply for retirement after receiving official written notice of an impending reduction-in-force before separation, the right to priority reemployment consideration is waived. Retirement after separation through reduction-in-force protects priority reemployment consideration during the 12-month period. Employees do not receive retirement payments during the same period in which severance wages are paid.
Appeal Rights
Employees separated by reduction in force have the right to appeal the decision of reduction-in-force. The appeal is limited to a review to assure that fair and systematic procedures were applied. If appealed, in accordance with the university’s Grievance Procedure, employees have 15 calendar days following the date of separation to file the appeal with the Division of Human Resources.
If alleging discrimination, employees may choose not to utilize the university’s Grievance Procedure and appeal directly to the State Personnel Commission within 30 calendar days following the date of separation. All appeals to the State Personnel Commission must be filed with the
Office of Administrative Hearings to:
6714 Mail Service Center
Raleigh, NC 27699-6714.
Appeal rights are set forth in the University’s Grievance and Appeal Policy and Procedures located at http://www.ncsu.edu/hr/er/grievancedispute.asp.
Severance Pay
Severance pay is available for an eligible employee who does not obtain other employment in state government by the effective date of the reduction in force.
Payment is based on total state service, salary at separation, and age at separation. Payment is made in the same number of months as the number of months of pay. Payment is discontinued once re-employment is obtained.
| Years of Service |
Payment |
| Less than 1 year |
2 weeks base salary |
| 1 but less than 5 years |
1 month base salary |
| 5 but less than 10 years |
2 months base salary |
| 10 but less than 20 years |
3 months base salary |
| 20 or more years |
4 months base salary |
An employee qualifies for an age adjustment factor at 40 years of age. To compute the amount of the adjustment, 2.5% of the annual base salary at separation, is added for each full year of age over 39 years of age. The total age adjustment factor cannot exceed the total service payment.
Example: Age 59 Salary - $24,000/year, 20 years service
| Factor |
Computation |
Amount of Severance Pay |
| Service |
$2,000/month for 4 months |
$8,000 |
| Age Adjustment |
$24,000 x .025 x (59-39) = $12,000 Age adjustment factor cannot exceed the service factor so the age factor is limited to $8,000. |
$8,000 |
| |
Total |
$16,000 Distributed over 4 months |
The following deductions must be withheld from severance payments.
| Deduction |
Amount |
| OASDI (Social Security) |
6.2% of gross amount |
| HI Tax (Medicare) |
1.45% of gross amount |
| Federal Withholding |
Based on your current withholding status on W-4 All |
| Campus Card |
Based on info provided by All Campus Card Network department |
| Parking Fines |
Based on info provided by Transportation Department |
| Garnishments, Support orders, Levies |
Based on directive provided |
| Negative leave balances |
Based on leave balances |
The following deductions may be withheld from severance payments. If interested, contact Payroll at (919) 515-4350.
- State Employees Credit Union
- Optional Insurances: SEANC Term, SEANC AD&D
- UE Local 150
- Parking fees
- Savings Bonds
The following deductions will not be withheld from severance payments.
- State of North Carolina withholding tax. The first $35,000 of severance wages are exempt from State of NC income tax.
- Gym access, gym locker
- Medical insurances including health, dental and vision
- TSERS Retirement
- 403b, 401k and Deferred Compensation
- 401k loan payments
- Life Insurance
Direct Deposit Enrollment
Severance payments, as well as any leave payout due, will continue to be directly deposited into the bank account currently set up. To change to a different account, please contact the payroll office.
Support Services
How will Human Resources help me?
It is critical to begin the job search process immediately after notification. Employees are contacted by an Employment Specialist from Human Resources to arrange for a meeting to discuss employment options and qualifications. The Employment Specialist works with the employee to brush up on job hunting skills through career counseling, practice interviews, application and resume preparation.
What steps should I take to begin my job search?
- Identify the type of job desired.
- Prepare a well organized, legible application and resume.
- Complete a NC State University employment application online at http://www.ncsu.edu/jobs/ and a State of North Carolina employment application.
- Identify potential employers.
- Contact family, friends, co-workers, neighbors, or professional organizations and acquaintances.
- Prepare for interviews. Keep responses focused on job issues and not on personal issues. Practice interviewing with a family member or friend.
- Dress appropriately for interviews. Assume that all employers require business attire. Never show up for an interview in shorts, jeans, t-shirts, or flip-flops.
Employment Resources
NC State University Vacancy Listing
NC State job listings are posted on a daily. A copy of the vacancy listing is also posted outside of the Human Resources office located in Administrative Services II on Sullivan Drive.
State Government Vacancy Listing
The Office of State Personnel offers an online job vacancy listing. Copies of the vacancy listings are available for review in many of the local libraries or via the internet.
Employment Security Commission Vacancy Listing
The Internet Job Information Service provided by the Employment Security Commission (ESC) of North Carolina is a self-directed system which provides a listing of current job openings. The service is available at most county libraries or via the internet through a link located on the NC State University Human Resources web site.
Chambers of Commerce
Local Chambers of Commerce provide directories of businesses within an area. Copies of these directories are also located in local libraries.
County Libraries
Books on job hunting, interviewing and resume writing and information on local employers can be found in most libraries.
Job Web Sites
The university's exit interview program is designed to secure information vital to preserving and promoting positive work environments. The program provides feedback to the university from separating employees, promotes an orderly transition in the work unit, and gives exiting employees an opportunity to voice concerns and make suggestions. Employees are encouraged to complete an Exit Interview Questionnaire online or by printing out a hard copy and returning the completed form to Human Resources, Campus Box 7210.
Benefits
As an employee facing a reduction in force, employees are concerned with the continuation of health care coverage and other insurance programs under payroll deduction. There are also questions about retirement benefits, the funds contributed to retirement accounts, and vacation and sick leave balances. Please be assured that Human Resources makes every effort to place employees in other positions so that benefits are uninterrupted. However, if separation occurs, contact the Benefits Department at 515-2151 to discuss your options in detail.
Health Insurance
Health insurance coverage under the State Health Plan is continued for up to one year following the date of separation, provided there are 12 or more months of consecutive state service and existing plan coverage.
Employees who elect not to continue coverage under reduction-in-force priority directly after separation may not obtain coverage at a later date. Eligibility for coverage under RIF priority ends when employees are re-employed by the State and are eligible for coverage on a non-contributory basis.
If employees do not have 12 months of consecutive service, health coverage may be continued under COBRA for up to 18 months. Information regarding continuation rights under COBRA are made available from the State Health Plan.
Continuation Options for Other Health and Welfare Benefits Paid by Payroll Deduction
| Benefit |
Option |
Action Required |
| Retirement/Supplemental Retirement |
Not Allowed |
More info provided under Retirement Options |
| NC Flex Programs (Spending Accts, Dental, Vision, AD&D) |
May continue under COBRA for specific period of time. You pay the required cost of coverage. (Option to continue @ same rate.) |
NC Flex
AON 1-800-371-2926
Dental
1-800-291-8039
Vision
1-800-507-3800
AD&D
1-800-257-0930 |
| State Disability Programs (Short-term and Long-term) |
Coverage stops on separation date. |
None |
| Voluntary Disability Programs |
May convert to an individual policy within 31 days of termination at different rate. Must have been enrolled at least 12 consecutive months. |
Liberty Mutual
1-800-732-7875 |
| Death Benefit (Provided under the Teachers' and State Retirement System) |
This benefit is paid if you die within 180 days of the last day for which you were paid a salary. (If a contributing member for at least one year and have not withdrawn funds) |
None |
| Voluntary Life Insurance |
May continue under conversion privileges at different rates. |
MetLife
1-630-820-7955 |
| Hyatt Legal |
Can continue |
1-800-821-6400 |
| Automobile & Homeowners |
Can continue |
919-847-4909 |
Retirement Options
Service Retirement (Unreduced Benefits)
You may retire with unreduced service retirement benefits after
- You reach age 65 and complete five years of creditable service, or
- You reach age 60 and complete 25 years of creditable service, or
- You complete 30 years of creditable service, at any age.
Early Retirement (Reduced Benefits)
If there are at least 20 years of creditable service at separation, employees can apply for early payments beginning at age 50. However, benefit is reduced because payments may be received for a longer period of time. Early retirement with a reduced benefit after:
- Age 50 and 20 years of creditable service, or
- Age 60 five years of creditable service.
Discontinued Service Retirement
State employees, age 50 to 55, with at least 20 years of creditable service may be eligible for a reduced monthly retirement benefit. The reduction is equal to ¼ of 1% (3% per year) for each month that retirement precedes the 55th birthday. An unreduced discontinued service retirement allowance may be approved for employees with 20 or more years of creditable retirement service who are at least 55 years of age.
A Discontinued Service Retirement Allowance is not payable while receiving severance pay.
Retirement Contributions
Employees may leave contributions in the retirement system. If contributions are left in the retirement system and the employee was vested, individuals are entitled to retirement benefits at a later date. Depending on the length of service and hire date a vested employee had in the Teachers and State Employees Retirement System, the individual may be eligible for retiree health insurance coverage at no cost. If the employee was not vested, the only payment one can receive is a refund of contributions. The employee must fill out TSERS Form 5 for this refund.
There is also the option of receiving a refund of contributions to the retirement system.
Refund applications are available at the Benefits Office or at http://www.ncsu.edu/hr/forms/default.asp#hr-550. It is important to note that if contributions are refunded and individuals are re-employed by the State at a later date, they must contribute five years to the retirement system before being eligible to buy back prior state service.
Unemployment Insurance
Employees separated due to reduction in force are eligible to collect unemployment insurance provided they meet the normal eligibility requirements. Unemployment benefits may not be applied for until after the last severance payment. Contact the local office of the Employment Security Commission concerning eligibility to receive benefits.
Leave Balances
Vacation Leave
Vacation leave is paid for a maximum of 240 hours.
Bonus Leave
Bonus Leave is paid out.
Sick Leave
If employees return to state employment within five years from separation date, it will be reinstated. Sick leave transfers to other agencies.
Compensatory Time
Compensatory leave balances are paid for non-exempt employees. If exempt from overtime, compensatory time is forfeited.
Community Service Leave
The balance of community service leave can be transferred to other agencies.
Longevity
Longevity pay is an annual lump sum payment based on an employee's salary and total state service. Longevity pay is paid to employees with at least 10 years of permanent employment.
Sample Resume
FAQ about Reduction In Force (RIF)
Sample Interview Questions
For more information, contact Employment Services at 919-515-2135.
