FAQ - Effect of ERIT on Benefits and Other Aspects of Employment
No. This is one of the advantages of ERIT. You will continue to accrue vacation and sick leave at your pre-ERIT appointment percentage.
Under ERIT, UCRP service credit will accrue in accordance with your ERIT appointment percentage, so if you reduce your appointment from 100% to 75%, you will accrue 75% service credit. Your retirement contributions under ERIT will be based on the reduced salary.
Buyback of UCRP service credit applies to leaves of absence. There is no provision in UCRP for buying back service credit for reductions in time.
No, your eligibility for health and welfare benefits will not be affected by ERIT because your percentage of time on pay status under ERIT cannot be reduced below 50% time.
Disability benefit payments for both the Short-term Plan and the Supplemental Plan will be based on your pre-ERIT salary and your premiums will continue to be based on your pre-ERIT salary.
Supplemental and Dependent Life insurance will not be impacted by participation in ERIT– premiums and coverage will continue to be based on your full-time salary rate. Basic Life insurance will be calculated using your full-time salary rate and your pre-ERIT appointment percentage.
Highest Average Plan Compensation (HAPC), which is used to calculate UCRP Monthly Retirement Income or Lump Sum Cashout, is based on monthly Full-Time Equivalent Compensation and does not change as a result of participation in the ERIT Program.
Final Salary, which is used to calculate Preretirement Survivor Income, Death Benefits for Members who became active before October 1, 1990, and Disability Income, will be adjusted to reflect the average percent of time on pay status during the preceding 36 months if an employee dies or becomes disabled while, or within 12 months of, participating in the ERIT program.
If your 403(b) or 457(b) contributions are deducted as a percentage of your compensation, your contributions will be reduced if you participate in ERIT.
In addition, your maximum annual contribution to the 403(b) Plan or 457(b) Plan may be affected by your participation in ERIT because it is based on the lesser of your adjusted gross salary or a fixed amount based on age. For example, your maximum annual contribution for 2011 would be based on the lesser of:
- your adjusted gross salary; or
- $16,500 if you are under age 50 as of December 31, 2011 or $22,000 if you are age 50 or older anytime during 2011.
The DCP requires contributions as a specific percentage of eligible salary, therefore, contributions will be lower.
Refer to the list of "Important Considerations" in the ERIT contract.