May 14, 2009
 

Flexible Furlough Update from Human Resources

In response to State budget shortfalls, Governor Purdue issued Executive Order No. 11 on April 28, 2009, which included a Flexible Furlough for all State employees.

UNC Asheville has been working with UNC’s General Administration, the Office of State Personnel, the Office of State Budget and Management and Central Payroll to determine how the furlough program will be implemented. While the final implementation guidelines have not yet been issued by the Office of State Budget and Management and Central Payroll, here are a few key points about the furloughs, based on the information we have received as of May 12, 2009:

1. All University employees, regardless of the funding source for their pay, will receive a 0.5% reduction in their annual base salary. Because this reduction takes place during the last two months of the fiscal year, the 0.5% reductions equates to a 3% reduction of your monthly salary in each of the months of May and June.

2. In return for the salary reduction, employees will be given 10 hours of flexible time off (pro-rated for part-time employees) which may be taken between June 1 and December 31, 2009. This time will be forfeited if not taken by December 31, and will not be paid out if an employee separates from the university. Employees should work with their supervisors to schedule the time off. A form is being developed to record and report the leave.

3. With the exception of retirement, benefits will not be affected by the furlough. Any payouts for unused leave (except furlough leave), service credit, and longevity payments (for SPA employees) will not be affected.

Regarding retirement contributions, the State Treasurer’s Office has advised Governor Purdue to encourage legislation to allow contributions on the full base salary. If such legislation is enacted, the state’s contributions to retirement will remain the same. If legislation is not enacted, retirement contributions will be paid on the lower salary rate.

4. Temporary employees are also subject to the Flexible Furlough Program, however, at this time, consistent information on their reduction is not yet available. Additional information will be provided as soon it is made available to the University.

5. Student employees are exempt from all Furlough provisions.

We will provide updates to employees as more information becomes available. Each permanent employee will receive a letter with more specific details about the flexible furlough program reductions, and any general updates will be posted to UNC Asheville’s Budget webpage.