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 Importance of Timesheets

• 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.

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
The Importance of Timesheets

• 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.

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 800am
• Out 100pm
• In 130pm
• Out 730pm
• In 800pm
• Out 900pm

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 cant 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 weeks for
  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 employees 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 doesnt have enough
  sick time accrued,) then the supervisor should
  contact Sharon Bessinger at the Research
  Foundation Employee Services Department to
  determine the employees 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. Workers Comp insurer)

28
Workers Compensation

• 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.

29
Workers Compensation

• If the employees 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 Issues Rollover 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

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

51
Optional Retirement Accounts

• Before you get your paycheck and before taxes are
  taken out, the SRA deductions are taken out.
  Because you report a lower amount of income to
  the IRS, youll pay less in taxes on your current
  pay. Your SRA contributions go straight toward
  your retirement, free of federal taxes and, in
  most cases, state or local taxes as well, until
  you begin receiving your income later on.

52
Optional Retirement Accounts

• Your earnings are also tax deferred. Up front
  tax deferral is just the start. You also pay no
  taxes on your SRA earnings until you receive them
  as income and at that point you may be in a lower
  tax bracket. So year by year, your earnings
  compound without the drain of taxes.

53
Optional Retirement Accounts

• The Research Foundation offers two options for
  retirement investment savings.
• TIAA-CREF- www.tiaa-cref.org
• Fidelity Investments-www.fidelity.com

54
Enrollment

• The Salary Reduction Agreement indicates the
  percentage of salary you would like to contribute
  and lets you stipulate when the contributions
  should begin

55
Enrollment

• The Designation of Investment indicates the
  TIAA-CREF or Fidelity tax deferred program(s)you
  wish to contribute to.
• TDA-Tax deferred Retirement Annuity Contract for
  employee tax deferred funds
• Group supplemental Retirement Annuity Contract
  for employee tax deferred funds
• Fidelity Investments 403(b) Custodial Account(s)
  which are Mutual Funds

56
Optional Retirement Accounts

• For investment direction call the
• TIAA-CREF SRA HOTLINE
• 1-800-842-2888
• Stocks, bonds or short-term investments
• FIDELITY INVESTMENTS
• 1-888-836-7655
• Provides investment opportunities in mutual funds

57
FAQ -Retirement Accounts

• Whats the most I can contribute to my TIAA-CREF
  retirement plan or SRA in any given year?

58
FAQ -Retirement Accounts

• The ceiling for all contributions (yours and your
  employers) to all tax-favored retirement plans
  (your retirement and SRAs, IRAs etc. ) is
  40,000. The overall limit includes after-tax
  contributions as well as pre-tax. (This is
  subject to change due to IRS regulations)

59
Contribution Limitations
For Calendar Year Total Contributions Cannot Exceed If age 50 or older by the end of the calendar year total contributions cannot exceed
2002 11,000 12,000
2003 12,000 14,000
2004 13,000 16,000
2005 14,000 18,000
2006 15,000 20,000