Breadcrumb Navigation:

Human Resources > Benefits > Life Events > Current Page

Employment Status Change

help button.  click this to display help form

Ask a question

Name: Your email: Question:

For benefit purposes, a change in employment status means moving from one benefits eligibility category to another. This usually involves a change from ineligibility to eligibility or vice versa, part-time to full-time employment (20 - 29 hours per week to 30+ hours per week) or from SPA to EPA status or vice versa.

General Rule

Employment status changes cause a new 30-day window to open during which conditional changes to benefit plans may be made (depending on the type of status change). The 30-day window begins with the effective date of the change. Staff and faculty members are encouraged to contact a Benefits Consultant as soon as possible for instructions and information about making changes. Employees who change from ineligible to eligible status may be required to attend New Employee Orientation.

Retirement System

Retirement plan participation is mandatory for employees with a status of 0.750 FTE or greater who are working on a 9-month or greater contract on a recurring basis. Benefits-eligible SPA employees are automatically enrolled in Teachers' and State Employees' Retirement System (TSERS).

Newly Benefits-eligible EPA faculty and staff are granted 60 days to select either the Teachers' and State Employees' Retirement System (TSERS) or the Optional Retirement Plan and 30 days for all other benefits.

Once the choice of retirement system is made, the election is irrevocable. Failure to select and enroll in a specific plan will result in default enrollment into the Teachers' and State Employees' Retirement System. Faculty or staff who experience a status change to below .75 FTE should contact a Benefits Consultant for information about retirement account options.

Health Benefits

Eligibility to participate in the State Health Plan begins at 0.50 FTE (20 or more hours per week). Part-time employees (20 and 29 hours per week) may participate by paying the full premium cost through convenient payroll deduction.

Full-time employees who are SPA/EPA (30+ hours per week) working on a 9 month or greater contract on a recurring basis are eligible for the University's contribution toward health coverage (dependent premiums are at full-cost and are payroll-deducted).

NCFlex Benefits

NCFlex benefits are available to SPA or EPA employees with a .50 FTE or greater. In general, a status change between full and part time (or vice versa) does not impact the cost of NC Flex benefits; however, the maximum allowable life insurance amount is 5 times the base annual salary and might require adjustment. Flexible spending account contributions may be adjusted as a result of a status change.

MetLife Group Term Life Insurance

If a salary change occurs during the year, MetLife coverage and premiums will change effective the next month to reflect the new base annual salary. Spouse's coverage cannot exceed an employee's, so an adjustment may be required if there is a significant decrease in salary.

Supplemental Retirement Plans

All Faculty and staff may contribute to supplemental 403(b), and/or Deferred Compensation (plan 457). Participation in the state-sponsored 401(k) is available with an employment status of 0.75 FTE or more and participation in one of the mandatory retirement plans.

Long-Term Disability Coverage

Employees with a status of 0.75 FTE (30+ hours/week) or greater are eligible for long-term disability coverage through Liberty Mutual (only TSERS-State Retirement) or Standard (only ORP participants). Based on the status change, coverage may end on the date of the status change or in-eligibility. Newly eligible staff and faculty will be granted a 30-day enrollment window (60 days, if EPA).

Forms and Instructions

Visit our Enrolling In or Changing Benefits page for instructions on making changes or enrolling in your benefits.

Continuation and Portability

Employees who become ineligible for coverage will receive COBRA, continuation or portability information directly from the plan, mailed to the home address.

Last Edited: November 14th, 2011