The Research Foundation Employee Services Department

1. The Research Foundation Employee Services Department Sandra Cochran Courtney Cox Sharon Bessinger Barbara Bardak Stephanie Gruarin

2. The Research Foundation must comply with the F.L.S.A.- Fair Labor Standards Act, New York State Labor laws and the Federal Office of Management and Budget (OMB) circular-21 (Principals for Determining Costs applicable to Grants, Contracts, and Other Agreements with Educational Institutions. The Importance of Timesheets

3. The Importance of Timesheets • OMB-Circular 21 requires educational institutions to report and certify the actual distribution of effort of all employees performing on federally sponsored projects.

4. The Importance of Timesheets • All non-exempt ( from the F.L.S.A.) Research Foundation employees must complete an hourly or a bi-weekly attendance report showing each hour worked in order to fulfill the overtime calculation requirements of the F.L.S.A.

5. The Importance of Timesheets • The F.L.S.A. also specifies record-keeping requirements for exempt employees-those who are in bona fide executive, administrative and professional positions

6. All hourly and biweekly salaried nonexempt employees must complete a timesheet that gives an accurate distribution of hours based on their Full Time Equivalent (FTE). Example: .7 FTE of a 40 hour week = 28 hours weekly, 56 biweekly. The Importance of Timesheets

7. The Importance of Timesheets • All exempt employees must complete an exception report for each calendar month. • Time off is to be recorded in quarter day increments only. • Anytime off less then a quarter day should be handled however the supervisor decides, yet should be reported as .25, ( if reported) • Example: April 21- 1.0 April 24- .25 Total based on 8 hour day-10 hours or 1.25

8. The Importance of Timesheets • Non-exempt employees that work more than a six hour period must show time off for a minimum of a half hour break. This applies to any overtime over six hours as well.

9. The Importance of Timesheets • If the sponsor has approved overtime, and it is in the budget, and the project director has approved it then: • The break rule applies to overtime as well. • Example: In 8:00am Out 1:00pm In 1:30pm Out 7:30pm In 8:00pm Out 9:00pm

10. The Importance of Timesheets • Requests for overtime to be paid must be made in writing • Example: “Please pay me the 6 hours of overtime in my September 25 paycheck”

11. The Importance of Timesheets • Sponsors periodically audit the personnel appointments to assure that guidelines are being adhered to.

12. Vacation, Sick, and Personnel Leave Policy • Vacation leave must have prior approval and may be used at any time during the calendar year • Personal leave (for non-exempt employees) must have prior approval and may be used at any time during the calendar year

13. Vacation, Sick, and Personnel Leave Policy • Sick leave is to provide a reasonable measure of protection against loss of income due to illness or disability. If you call in sick and do not have accrued sick time, you will be charged Leave Without Pay, therefore you can’t call in vacation or personal time since it requires prior approval

14. Vacation, Sick, and Personnel Leave Policy • An employee absent on sick leave for five or more consecutive days is required to produce a return to work form filled out by a physician before returning to work.

15. Vacation, Sick, and Personnel Leave Policy Doctor/ Dentist Appointments • Employees are encouraged to schedule medical appointments during non-working time. However, if necessary, sick leave may be charged

16. Vacation, Sick, and Personnel Leave Policy Sick Children or Family Member • Employees can charge “family” sick (15 accrued sick days maximum), personal or vacation time if a family member is ill. • If the leave becomes longer term, then the leave may fall under the Family and Medical Leave Act.

17. Family and Medical Leave Act • The FMLA is a federal law that requires certain employers to allow eligible employees to take up to 12 weeks of unpaid job-protected leave during a 12 month period for various health and family-related reasons. • To be eligible for FMLA, an employee must have at least 12 months of service and must have worked over 1250 hours over the previous 12 months.

18. Family and Medical Leave Act • Eligible employees may take leave for: • the birth of a child • the adoption of a child • the provision of foster care to a child • the serious health condition of the employee, or the serious health condition of an immediate family member

19. Family and Medical Leave Act • If possible, the employee should request leave at least 30 days before it is to begin. • The Employee Services Department at the Research Foundation has the necessary forms for an employee who wishes to formally request leave under the F.M.L.A.

20. Family and Medical Leave Act • Employees on unpaid FMLA electing to continue health insurance must pay their share of the premiums, and if they elect to continue life insurance, they must pay the full premium

21. Family and Medical Leave Act • Employees may elect to take unpaid leave, or to use paid accruals in the form of (1) an absence from work of up to 12 consecutive weeks, (2) an equivalent amount of time taken intermittently, or (3) a reduced work schedule. Note: Leave may not be taken intermittently or in the form of a reduced work schedule for the birth or placement of a child

22. Disability Insurance • The New York State Disability Law requires that the Research Foundation provide partial income replacement to employees for up to 26 weeksfor an off-the-job illness or injury. (Maternity is 6 weeks) • An employee will receive 50% of his/her average weekly salary up to the $170 maximum set by the NYS disability Benefits Law. FICA taxes are also deducted by law.

23. Disability Insurance • Sick leave must be exhausted to qualify for disability • The disability payment may be supplemented with partial vacation accruals and personal leave in order to maintain the employee’s normal salary. • A seven calendar day waiting period applies • Benefit coverage will continue during the period of time that the employee receives partial income replacement.

24. Disability Insurance • If an employee has been absent from work for three days, this may signal an impending disability claim. If the supervisor feels that the employee may need an extended leave, (particularly if the employee doesn’t have enough sick time accrued,) then the supervisor should contact Sharon Bessinger at the Research Foundation Employee Services Department to determine the employee’s status.

25. Disability Insurance • The Research Foundation also provides coverage for long term disability . • When 26 weeks of disability through the Zurich Insurance Company has been exhausted, the long term carrier takes over the claim • Employees can obtain the necessary information by contacting the Research Foundation Employee Services Department

26. Workers’ Compensation • The Research Foundation provides income replacement and payments for medical expenses for a work related injury or illness. • An employee will receive up to two-thirds of his/her average weekly salary, but no more than the maximum benefits set by the N.Y. State Workers’ Comp Board.

27. Workers’ CompensationHow do I file a claim? • Obtain the necessary medical treatment • Report the injury/illness to the employer/ supervisor in writing, who then should contact the Research Foundation immediately • If necessary, the R.F. will contact the employee and take a statement detailing the incident • The R.F. will phone a report in to Chubb Insurance Group (the R.F. Worker’s Comp insurer)

28. Workers’ compensation income replacement benefits end when the employee is no longer disabled and his/her physician approves a return to work. Medical expense coverage is on-going for as long as recovery from the injury or illness requires. Workers’ Compensation

29. Workers’ Compensation • If the employee’s work-related injury or illness results in more than a 7-consecutive day absence from work, income replacement benefits begin on the 8th day. • If the injury exceeds 14 consecutive days, the 7- day waiting period is waived and income replacement benefits are paid from the first day the employee was unable to work.

30. Flexible Spending Account • An FSA is an IRS approved tax-free account that saves the participant money on eligible medical and dependent care expenses not covered by other benefits. • Each plan year at open enrollment the participant can contribute a maximum of $3,000 to the Medical Expense Flexible Spending Account and $5,000 to the Dependent Care Flexible Spending Account.

31. Flexible Spending Accounts • The participant needs to estimate their expenses for the upcoming plan year carefully so as not to forfeit any unclaimed funds set aside. The deduction is taken biweekly from their paycheck. • When a participant incurs eligible expenses they simply submit a claim for to the Fringe Benefit Management Company with a receipt and a check is either mailed or directly deposited into the participants checking or savings account.

32. Flexible Spending Accounts • Examples of reimbursable expenses for the Medical Flex Plan: • fees for physicians, surgeons, dentists, ophthalmologists, and chiropractors • Medical, dental, vision and prescription drug plan deductibles or co-payments

33. Flexible Spending Accounts • Examples of Dependent Care Expenses • Child, adult and elder care costs that allow the participant and spouse to work or actively look for work • Day care facility fees for qualified dependents (children under the age of 12 or adults mentally or physically incapable for self-care who live with the participant)

34. Retirement Issues • The Research Foundation Basic Retirement Plan is a defined contribution plan. • The Optional Retirement Plan is a voluntary program designed to provide you with additional savings.

35. Retirement IssuesVesting • Vesting is when an employee gains full ownership to the retirement contributions the Research Foundation has set aside during the previous five years in the defined contribution plan.

36. Retirement IssuesVesting Requirements • There is a one year waiting period beginning with the date of employment, during which no contributions are made.

37. Retirement Issues Vesting Requirements • In the previous calendar year an employee had to work 975 hours (based on a 37.5 hour work week) or 1000 hours (based on a 40 hour work week)in order for the full year to be counted. This is called qualified service.

38. Retirement IssuesVesting Requirements • After the 1 year waiting period (in which no contributions were made) the R.F. sets aside contributions for that employee from years 2 to 5 (4 years total).This is called service credit. • After year 5 an employee is “vested”: the employee now has rights to the retirement account

39. Retirement IssuesVesting Requirements • You must return an application in order for your pension benefits to be allocated to the TIAA-CREF funds you desire. This application will be mailed to you several weeks after your vesting anniversary date.

40. Retirement IssuesVesting Requirements • Presently, for employees hired after July 1, 1994, the R.F. contribution rate is 8% for the first 7 years of foundation eligible service and 10% of earnings thereafter. (Contributions stay at 10% for the duration of employment.)

41. Retirement IssuesPrior Service • Prior service is employment as a non-student employee immediately preceding employment with the Research Foundation.

42. Retirement IssuesPrior Service • The previous employment must have been with an accredited college or university or a non-profit 501 (c) 3 research organization . • The Research Foundation will take into consideration the amount of time of prior service and credit it toward retirement accordingly.

43. Retirement IssuesRollover Assets • If you had assets from one eligible retirement plan you can make a rollover to the Research Foundation plan. • You can do an indirect rollover which is made directly to you for the purpose of transferring the payment to another plan. This may have taxation implications and there is a 60 day limit to make the transfer of funds.

44. Retirement IssuesRollover Assets • You may also do a direct rollover in which your prior plan transfers the assets directly to the Research Foundation qualified plan. • This method is a safer way to transfer assets and protect them from taxation by the IRS.

45. Retirement Definitions • Annuity-A contract that provides an income for a lifetime or for a specified number of years • Annuitant-A person receiving annuity payments • Annuitize-Conversion of retirement plan accumulations to regular income payments • Participant-A current eligible employee who has met the service requirements or a former employee who has full ownership rights to retirement contributions

46. TIAA-CREF What is it? • TIAA- Teachers Insurance and Annuity Association • The third largest insurance company whose goal is to provide employees in education and research with their own personal retirement association by providing annuities .

47. TIAA-CREF What is it? • CREF-College Retirement Equities Fund • An investment company that offers eight distinct investment accounts accounts. All CREF accounts are variable annuities, so their accumulation will fluctuate with the performance of the underlying investments.

48. CREF Contract SettlementsOptions for Lifetime Annuity Income • Single Life Annuity-pays an income for as long as the annuitant lives. All payments stop at his or her death. Payments will not be made to a beneficiary unless a guaranteed period has been selected.

49. CREF Contract SettlementsOptions for Lifetime Annuity Income • Two-Life Annuity-pays the annuitant and his or her partner income for as long as either lives. Payments may be made to a beneficiary by electing a guaranteed period feature.

50. Retirement IssuesOptional Retirement Accounts • SRA’s (Supplemental Retirement Accounts lower your current tax bill. The only way to save money on a tight budget is to pay yourself first. With SRA’s, your contributions come from your salary automatically at a percentage or amount that you specify.