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Administration Policy and Procedure


40.056:  Voluntary Short-Term FTE Reduction for Administrators


Status:

Approved on June 12, 2006Signatures and dates
on archival copy

Effective:

when approved 

Initiated by:

James E. Kemper
Assistant Vice President for Finance and Administration for Human Resources		 

Endorsed by:

The Ohio
University
Cabinet

Kathy Krendl
Provost		 

Approved by:

Roderick J. McDavis
President		 


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Purpose

Planning units and departments can address short-term budget concerns while fulfilling scheduling needs of their full-time contract administrative staff by offering a voluntary short-term Full Time Equivalent (FTE) reduction. The program objectives are:

  1. To offer employees an option of greater workplace flexibility to meet their personal needs.

  2. To offer departments a short-term budget reduction option.

  3. To allow adjustment of staffing to predicted workload variations.


Plan

Employees may arrange with their supervisors, department heads, and planning unit heads for a voluntary, short-term reduction in the employee's position FTE. Review of these arrangements by University Human Resources (UHR) will include examination of their voluntary nature.


Policies and Procedures


I.  Process

Voluntary short-term FTE reduction occurs according to the following process:

  1. Employee requests FTE reduction from immediate supervisor (see Note 1, below).

  2. Immediate supervisor, department head, and employee clarify terms of reduction and complete the Voluntary Short-term Reduction Form. This may include specification of the minimum notice for early cancellation; if not specified, it defaults to two weeks; see item 9, below.

  3. Department head evaluates operating needs, service levels, and other FTE reduction requests from within the department (see Note 2, below).

  4. Department head forwards request(s) with recommendations to planning unit head for approval or disapproval.

  5. Planning unit head informs the department head and employee of the decision (see Notes 3-6, below), including any modifications of the duration and vacation accrual described in the submitted Voluntary Short-term Reduction Form.

  6. The employee confirms in writing his or her acceptance of the FTE reduction as approved.

  7. Department head processes approved FTE reductions with UHR and Payroll Services.

  8. Approved reductions are short-term reductions with a duration as specified in the submitted Voluntary Short-term Reduction Form, unless modified by the planning unit head at the time of approval.

  9. The department may cancel the reduction based on the needs of the University or department. The employee may also cancel the reduction. Such cancellation by the department or employee takes effect two weeks after notice is given, unless a different date is mutually agreed upon, or a different minimum notice was specified in step 2, above.


II.  Compensation and Benefits

The following apply to short-term reductions:

  1. Pay:  will be reduced and pro-rated in accordance with the FTE reduction.

  2. Health Insurance:  There will be no change in the health insurance coverage or premium.

  3. Payroll Deductions:  The employee will need to arrange (with Human Resources) for direct payments for those months, if any, when pay is zero or so small that no payroll deduction takes place. This applies to health insurance and other payroll deductions.

  4. Vacation Accrual:  For the duration of this short-term FTE reduction, the vacation accrual will be adjusted. If the employee works 40-hour weeks for a reduced number of months per year, vacation will accrue at the regular two days per month rate:

    • 11 months - earn up to 20 days per year
    • 10 months - earn up to 18 days per year
    •   9 months - earn up to 16 days.

    If the employee works fewer hours per week, vacation will accrue on a pro-rated basis, as specified in the submitted Voluntary Short-term Reduction Form, unless modified by the planning unit head at the time of approval.

    These vacation accrual schedules are an exception to Policy and Procedure 41.010, "Benefits for Administrative Presidential Appointees."

  5. Education Benefits:  no change

  6. Retirement:  OPERS retirement credit will be earned for every month worked. To receive credit for a month, the employee must earn a minimum of $250.00 and be on active pay status (includes time worked, vacation, sick, and personal-time pay) during that month.

  7. Sick Time Accrual:  no change (see Policy and Procedure 40.029, "Sick and Bereavement Leave for Faculty and Administrative Appointees").

  8. 12 Month Pay Plan:  During their short-term FTE reduction, employees may choose to receive their pay in twelve equal monthly amounts, as described in Policy and Procedure 41.007, "Twelve Pay Option."


III.  Notes

  1. The reduction can be in many forms, examples of which include:

    • Reduced days per week.

    • Reduced weeks per month

    • Reduced months per year (OPERS credit is only available for months worked; contact UHR for advice and counsel.)

  2. Department heads and planning unit heads must consider the operating needs of their units and all requests from other employees to determine what should be approved. Requests from other employees and service impact will influence the planning unit head's decision to accept, alter, or deny any requests.

  3. Savings accrued from the FTE reductions will be used at the discretion of the planning unit head to meet short-term budget shortfalls.

  4. Approval of the reduction does not reduce the authorized FTE strength of the planning unit.

  5. The reduction can be extended by mutual consent. A new Voluntary Short-term Reduction Form should be completed and the process of subsection I, above, followed. All documentation must be forward to Payroll Services and Human Resources' Records Department.

  6. If a "permanent reduction" is later mutually agreed upon, the department and employee will officially change and adjust the FTE of the position, as governed by separate guidelines available from the Provost's Office.


Reviewers

Proposed revisions of this policy should be reviewed by:

  1. President

  2. Provost

  3. Cabinet

  4. Vice President for Finance and Administration, Chief Financial Officer and Treasurer

  5. Administrative Planning Unit Heads

  6. Administrative Department Heads

  7. Administrative Senate

  8. Policy and Procedure Review Committee


Forms

The following forms are specific to this policy:

  1. The "Voluntary Short-Term FTE Reduction Agreement - Administrative Staff" form is available through http://www.ohio.edu/hr/forms.cfm.


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Dick Piccard revised this file (http://www.ohiou.edu/policy/40-056.html) on October 10, 2007.
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