Information on Furlough Lump Sum Payment Option for Career Status Furloughed Employees

Employee Fact Sheet

Office spreadsheet iconLump Sum Payment Calculator (xls)

Current Policy

Professional & Scientific (P&S) staff members with career status who are furloughed are provided furlough notice periods for specific periods of time based upon the number of years the staff members have been in career status.

  • Less than 4 years in career status: 6 month notice period
  • 4-8 years in career status: 9 month notice period
  • Greater than 8 years in career status: 12 month notice period

Furlough Lump Sum Payment Option

  • The lump sum payment option is offered at the discretion of the department upon approval from Consuelo Garcia, Compensation & Classification.
  • If a staff member accepts the lump sum payment option, a 90-calendar day notice period begins from the date of the furlough notification letter, in lieu of the notice periods listed above.
  • Similar to the normal furlough process during which a staff member remains employed during the furlough notification period, the staff member receives priority consideration for vacant P&S non-organized positions during the 90-calendar day notice period, and for 12 months following termination per the University Operations Manual.

Staff Member Eligibility

  • The staff member has at least one year of employment in career status.
  • The staff member has received a furlough notification letter stating the elimination of his/her position for reasons other than cause and the department has offered the lump sum payment as an option in the furlough notification letter.

Furlough Lump Sum Payment Paid

At the end of the required 90-calendar day notice period, if the staff member has not secured a regular full-time position or has not declined a position for which s/he were qualified, the staff member is paid a lump sum amount according to the following:

  • Less than 1 full year in career status: Not eligible for the furlough lump sum payment option
  • 1 full year but less than 2 years in career status: 1 week's pay multiplied by the actual number of years in career status
  • 2 full years but less than 3 years in career status: 2 week's pay multiplied by the actual number of years in career status
  • 3 full years but less than 4 years in career status: 3 week's pay multiplied by the actual number of years in career status
  • 4 full years or more in career status: 4 week's pay multiplied by the actual number of years in career status; maximum equivalent is 26 weeks of pay

Lump Sum Relinquished

If the staff member secures a regular full-time position during the 90-calendar day notice period or terminates employment from the University for any reason prior to the end of the 90-calendar day notice period, the lump sum payment will not be paid.

COBRA Contribution

In addition, if the staff member accepts the lump sum payment option, the University continues its normal contribution for health and dental insurance for the staff member only towards COBRA coverage for twelve months following termination. Funds for both the lump sum payment and the COBRA payment come from the Central Fringe Benefit Pool.

Departmental Considerations

  • In order to offer this option, departments must work through their Senior HR Representative to seek approval from Consuelo Garcia, Compensation and Classification. 
  • Departmental furlough notification letters offering a furlough lump sum payment option must clearly list that option.  Departments wanting to offer a furlough lump sum payment option after the initial furlough notification letter is issued, will be required to resubmit a new RIF and a revised draft furlough notification letter indicating new notification dates and the furlough lump sum payment option.
  • The furlough lump sum payment option may be revoked at any time during the 90-calendar day notice period upon agreement by both parties.
  • The department should consider the period of time needed for coverage of the staff member's duties if the staff member accepts the furlough lump sum payment option.
  • Departments should also be cognizant of actual or perceived differential treatment when deciding to offer the furlough lump sum payment option to various staff members over time.

Staff Member's Decision and Default

The staff member has 21 days from the date of the furlough notification letter to respond with a decision. If the staff member does not respond within the 21 days, the default falls to the normal furlough process.

Staff Member Considerations

  • If the staff member secures a regular full-time position during the 90-calendar day notice period or terminates employment from the University for any reason prior to the end of the 90-calendar day notice period, the lump sum payment will not be paid.
  • Staff members will have slightly smaller vacation accruals available for payout than they would with longer notice periods, since the accruals end sooner. Furthermore, while vacation payouts are taxed at the earnings rate, lump sum payments are taxed at a flat rate. This could result in a tax liability when filing annual taxes.
  • The 90-calendar day notice period provides a shorter window for priority consideration of vacant P&S non-organized positions than does the six-, nine-, or twelve-month notice period, meaning successful placement is less likely prior to termination.  The staff member, however, will have 12 months from the date of termination to exercise priority consideration for vacant P&S non-organized positions.
  • If the staff member returns within 12 months of termination to University employment, s/he retains the original employment date for purposes of parking priority and record of service with the University, and the original benefit date affecting retirement, disability and dental insurance.
  • If the staff member returns within 12 months of termination to University employment in a position with career status, s/he may request to retain his/her original career status date per the University Operations Manual.  The hiring department will have final decision.
  • The lump sum payment option may be revoked at any time during the 90-calendar day notice period upon agreement by both parties.
  • In the event that a staff member’s position is eliminated more than once during his/her University employment, the staff member may elect the lump sum payment option no more often than once in a 12-month period, and no more than twice during his/her total University employment.

Revocability

The lump sum payment option may be revoked at any time during the 90-calendar day notice period upon agreement by both parties.

Restriction on Use

In the event that a staff member’s position is eliminated more than once during his/her University employment, the staff member may elect the lump sum payment option no more than once in a 12-month period, and no more than twice during his/her total University employment.

Processing Payment

Once the department has received a signed copy of the lump sum payment option agreement, the department will enter a Special Compensation Prior Approval in the HR Transaction system. The department will need to select special compensation type: P&S Lump Sum Furlough Payment.  The dollar amount of the lump sum payment should be listed under: Special Compensation to be Paid.