May 20, 2009

 

Flexible Furlough Update from Human Resources

Governor Beverly Purdue implemented a Flexible Furlough on April 28, 2009, which mandates that 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.

 

In return for the salary reduction, employees will be given 10 hours of flexible time off (pro-rated for part-time employees) which, according to the Executive Order must 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. 

 

The following are new developments in the flexible furlough as of May 18, 2009:

 

• The Governor's Office has approved a special request from UNC President Erskine Bowles and will allow University employees to take their 10 hours of flexible furlough leave beginning May 15, 2009, which is two weeks ahead of the original schedule.

 

University employees may begin taking their flexible furlough leave immediately.  All leave must still be used by December 31, 2009 or it will be forfeited.

 

The employee’s supervisor must approve all furlough leave.  Employees should utilize the Flexible Furlough Leave Form to request leave. The form should be attached to the employee’s time/leave report.  Time/leave reports have been updated to accommodate a code (“X”) for the furlough leave.  Updated time/leave reports can be found on the Human Resources website at http://www.unca.edu/hr/intranet/leave/leave.html#templates

 

• Governor Purdue signed House Bill 917 on May 18, which protects employees’ retirement and health insurance benefits for the duration of the Flexible Furlough. This means retirement contributions, employee and employer, will be paid on the employee’s full salary, rather than the reduced salary.  We do not yet have full details regarding how this process will be handled but will provide additional information as soon as it is made available to us.

 

The Human Resources Department continues to get information regarding the furlough from the Office of State Personnel, the Office of State Budget and Management, General Administration and Central Payroll.  We will continue to keep you apprised of new developments as they occur.