Reduction in Force (RIF)
A Reduction in Force (RIF) may occur for reasons such as budget constraints, shortage of work, changes in the organization, or a need to abolish SPA positions. A RIF decision requires an evaluation of the need for specific SPA positions as they contribute to the department's1 mission, goals, and provision of services.
A temporary employee working against a vacant permanent SPA position must not be retained when a permanent SPA employee in the same banded class (or equivalent) in the department is subject to a RIF, provided that the permanent employee is qualified and can be reassigned to perform the job duties of the position being filled by the temporary employee.
- Employees with probationary appointments as well as trainees with less than six months' service must be terminated before any employee in the same or a related classification with a permanent appointment, provided that the permanent employee can perform the tasks of the probationary employee or trainee.
- Temporary employees, probationary employees, and employees with time-limited appointments may be separated without following RIF procedures.
- Consideration for reduction in force of permanent employees includes, but is not limited to, the following factors:
- Which positions are most vital to the department in the delivery of services
- Relative skills, knowledge, efficiency, and productivity of employees
- Consideration of equal employment factors to avoid adverse impact
- Length of service of employees (but not seniority-driven)
- Appointment Type
1"Department" for this purpose is defined as an institutional division with a distinct organizational unit code (OUC) and with budgetary authority and oversight at the"3D" (dean, director, or department head) level, including center and institute directors and heads of major extramural research programs.
- Employment Rights
- Support Services
- Benefits
- Severance Pay
- Unemployment Insurance Benefits
- Direct Deposit Enrollment
- Health Insurance
- Continuation Options for other benefits
- Retirement Options
- Leave Balances
- Longevity
- Reduction in Force FAQ's
- Guidelines
- Reduction in Force Resources for State Employees
- Questions?
Employment Rights
Notification
Before a reduction in force occurs -- and after receiving Human Resources' formal approval -- the hiring department provides verbal and written notification to the employee. Written notice must be given at least 30 calendar days in advance of the separation date. Notification includes:
- The reason for the reduction in force
- The effective date (at least 30 days following notification)
- Direction to contact Human Resources to obtain information on: benefits, priority reemployment, completion of required application forms, aid in seeking employment, and eligibility for Unemployment Insurance benefits
- The amount of severance pay due
- The right of permanent career employees to appeal the reduction in force
Appeal
Permanent career employees separated by RIF have the right to appeal the action if it is alleged that the separation is in retaliation for opposition to alleged discrimination based on the employee's age, sex, race, color, national origin, religion, creed, political affiliation, or disability. Employees may also appeal based on the fact that the employer failed to apply Veterans Preference. Appeal may be made through the University's grievance procedure by contacting Employee Relations at 515-6575 or directly to the state's Office of Administrative Hearings.
Appeal rights are set forth in the University's Grievance and Appeal Policy and Procedures for SPA employees, located at http://www.ncsu.edu/human_resources/er/spagrievance.php.
Exit Interview
The university's exit interview program is designed to obtain information vital to promoting positive work environments. It gives exiting employees an opportunity to talk about their work experiences at NC State, share feedback, voice concerns, and make suggestions. Employees are encouraged to complete either an Exit Interview Questionnaire online or print a hard copy and return the completed form to Employee Relations, Campus Box 7210.
Probationary Period
Employees who have a break in state service of more than 31 calendar days may be required to serve a new probationary period if the duties of the new position are significantly different from those previously held. Employees must be notified in writing if a new probationary period is required.
Re-employment Priority Consideration
Once an employee who has reached "career status" (i.e., employed in state government for the immediate previous 24 months) is notified of RIF, the employee has priority for positions:
- at the same banded classification and the same or lower competency level as the RIF'd position, or
- at a different banded classification with the same or lower journey market rate as the RIF'd position, and
- for which the employee meets the minimum qualifications, and
- for which the employee could be trained to perform the job within a reasonable time, including normal orientation and training given any new employee, and
- at the same FTE
Additional information can be located at: http://www.osp.state.nc.us/RIF/reemploy.htm
Priority begins at the time of written notification and remains in effect for 12 months. To claim priority and apply for a position, employees must complete employment applications for the University. Acceptance or decline of a position at a lower salary or band/level does not affect priority. Employees who decline interviews or offers of employment for positions at the same or a higher salary grade or band/level within 35 miles of the original work station lose priority and can lose severance benefits.
Application materials are referred to the hiring official for review. Hiring officials are required to interview RIF candidates who meet the vacant position's minimum qualifications. RIF candidates have priority over external candidates and equal status to other state employees. If the hiring official believes the candidate is not qualified and cannot be hired, the reasons are documented and forwarded to HR for consideration.
Support Services
Job Search Assistance
It is valuable for an employee to begin the job search process immediately after notification of RIF. Employees meet with an Employment Consultant in Human Resources to discuss employment options and the search process. The Employment Consultant assists the employee with application completion, resume development, interviewing techniques, job search techniques, and networking. In addition, the Office of State Personnel (OSP) has established the State Employees' Career Transition Center. The center offers a variety of services including job search, resume writing, internet and computer access, and interviewing skills. Call (919) 329-5594 or toll-free (855) 252-1482 or visit the State Employees' Career Transition Center at 313 Chapanoke Road in Raleigh. The Career Transition Center's website is SECTC.nc.gov.
Faculty and Staff Assistance Program
The Faculty and Staff Assistance Program (FASAP), provides no cost, confidential and professional assessment and referral services for employees who may be experiencing personal or work-related concerns. Deer Oaks EAP Services provides services and support to employees and their dependents 24 hours a day, 7 days a week and 365 days a year. Employees can contact Deer Oaks by calling 1-877-EAP-SOLV (1-877-327-7658) or by visiting their web site. The web site login and password for NC State participants is FASAP. Additional information can also be provided by Employee Relations, 515-6575.
RIF Compensation & Benefits
Severance Pay
Severance may be paid to an eligible employee who does not obtain other employment in state government by the effective date of the reduction in force. Payment is based on total state service, salary at separation, and age at separation. Exception: If an employee was promoted within the last 12 months, the salary prior to promotion is used to calculate the severance payment. Final approval to pay severance must be given by the Office of State Budget Management.
The period covered by severance pay is not credited for state service or retirement service. Employees may continue to receive severance pay while working outside of state government or in a temporary capacity. Payment is discontinued once re-employment is obtained with state government.
Employees receiving severance may not be employed under any contractual agreement with a state agency. Probationary, time limited, temporary, or trainee employees are not eligible for severance pay.
Example of Payment:
59 year old employee, 23 years of service, annual salary $55,000
Eligible for 4 months of pay ($18,333.33) plus an age adjustment factor equal to 2.5% of annual salary for each full year of age over 39, not to exceed 22 years, and not to exceed the service-based component. So the age-based payment in this case is another $18,333.33, and the total severance payout is $36,666.66.
Years of Service |
Payment |
Less than 1 year |
2 weeks base salary |
1 but less than 5 years |
1 month base salary |
5 but less than 10 years |
2 months base salary |
10 but less than 20 years |
3 months base salary |
20 or more years |
4 months base salary |
The following deductions must be withheld from severance payments:
Deduction |
Amount |
OASDI (Social Security) |
6.2% of gross amount |
HI Tax (Medicare) |
1.45% of gross amount |
Federal Withholding |
Based on your current withholding status on W-4 |
NC Withholding |
Based on your current withholding status on NC-4, after exempt limit met (see below) |
All Campus Card |
Based on info provided by All Campus Card Network department |
Parking Fines |
Based on info provided by Transportation Department |
Garnishments, Support orders, Levies |
Based on directive provided |
Negative leave balances |
Based on leave balances |
The following deductions may be withheld from severance payments. If interested, contact Payroll at 515-4350.
- State Employees Credit Union
- Optional Insurances: SEANC Term, SEANC AD&D
- UE Local 150
- Parking fees
The following deductions will not be withheld from severance payments:
- State of North Carolina withholding tax. The first $35,000 of severance wages are exempt from State of NC income tax.
- Gym access, gym locker
- Medical insurances including health, dental, vision, etc.
- TSERS Retirement
- 403b, 401k and Deferred Compensation
- 401K loan payments
Unemployment Insurance
Employees separated due to reduction in force may collect unemployment insurance provided they meet the normal eligibility requirements. The local office of the Employment Security Commission should be contacted for details.
Direct Deposit Enrollment
Direct deposit enrollment will be canceled after payment of the last severance check.
Health Insurance
Employees who lose their job as a result of a reduction in force (RIF) may continue coverage under the State Health Plan for up to twelve months, as long as the employee has twelve or more months of service and the employee was covered under the State Health Plan (SHP) at the time of separation from service. Employees may continue coverage for their eligible dependents during this 12-month period by remitting any applicable premiums for dependent coverage to NCSU Payroll.
Employees who elect not to continue coverage under RIF immediately following separation may not obtain coverage at a later date.
After one year, the former employee and their eligible dependents may continue health coverage on a fully contributory basis. Former employees who choose to continue their coverage after their initial 12 months will be billed directly by Blue Cross Blue Shield of North Carolina.
Employees who do not have 12 months of consecutive service at the time of the RIF may continue health care coverage at full cost under COBRA (for themselves and any eligible dependents).
The State Health Plan will allow employees who have been RIF'd to change their health plan coverage (move from 80/20 to 70/30) and coverage type (employee-family to employee only), as long as the request is made within 30 days from the date of separation from service.
Contact your NCSU Benefits Consultant at human_resources/benefits/consultant.php for more information.
Continuation Options for Other Benefits
Some benefits may be continued at the time of RIF, subject to any subsequent plan changes, cost adjustments, vendor changes, and/or program cancellation.
| Benefit | Option | Action/Information |
|---|---|---|
| Retirement/Supplemental Retirement | Contributions are no longer allowed | See Retirement Options |
| NCFlex Programs (Flex Spending Accts, Dental, Vision, AD&D, Cancer, Critical Illness, NCFlex Life) | Continuation options are provided under COBRA provisions. The vendors will send COBRA packets to your home after regular coverage terminates. | Flexible Spending Accts: 1-877-371-2926 Dental: 1-800-291-8039 Vision: 1-800-507-3800 AD&D: 1-800-257-0930 Cancer: 1-800-521-3535 Critical Ill: 1-866-232-1518 Life: 1-877-464-5111 |
| State Disability Programs (Short-term and Long-term) | Coverage stops upon termination date. | No action required |
| Voluntary Disability Programs | Coverage stops upon termination date. | No action required |
| Death Benefit (Provided under the Teachers' and State Retirement System) | This benefit is still payable if you die within 180 days of the last day for which you were paid a salary; provided you were a contributing member for at least one year and you have not withdrawn funds. | No action required |
| MetLife Voluntary Group Term Life Insurance | Group coverage ends; however, there are options to port/convert to an individual plan at MetLife pool rates. | Contact your NC State Benefits Consultant |
| Hyatt Legal | Continuation options are provided under plan provisions. You must contact vendor to continue. | 1-800-821-6400 |
| Prudential Long Term Care | Can continue by direct pay to vendor. You must contact vendor to continue. | 1-800-732-0416 |
| Travelers Automobile & Homeowners Insurance | Can continue by direct pay to vendor. You must contact vendor to continue. | 919-847-4909 |
Retirement Options
RIF employees have the option of leaving contributions in the Retirement System and maintaining all of the earned creditable service as of the date of separation. If electing to leave contributions in the retirement system, employees may be eligible to retire at a later date provided they have at least five years of creditable service in the retirement system.
When leaving state employment, employees also have the option of receiving a refund of contributions from the retirement system (subject to a 20% early withdrawal tax penalty) or rolling over the money to an IRA or other qualified retirement plan. The State Retirement System requires a 60 day period after a withdrawal application is received to process the refund/rollover. To request a refund/rollover, the (Form 5) is required.
Withdrawing money through a refund or rollover will result in the loss of creditable service with the Retirement System and the loss of the retiree health insurance, if eligible. If contributions are refunded and the employee is re-employed by the State at a later date, withdrawn service may be purchased after contributing again for five years to the Retirement System.
An employee also can retire if he/she meets the eligibility criteria for retirement:
- Service Retirement (Unreduced Benefits)
- Age 65 and completion of five years of creditable service, or
- Age 60 and completion of 25 years of creditable service, or
- Completion of 30 years of creditable service, at any age.
- Early Retirement (Reduced Benefits)
- Age 50 and completion of 20 years of creditable service, or
- Age 60 and completion of five years of creditable service.
For more information, contact your Benefits Consultant and review NC State's and the Retirement System's websites:
Leave Balances
Vacation Leave
Vacation Leave is paid out up to a maximum of 240 hours. If the employee has more than 240 hours of vacation leave at the time of separation, vacation leave in excess of 240 hours will be reinstated if the employee returns to work with a state government agency or state university within one year. Employees may choose to use leave prior to separation with supervisory approval. Employees who are reduced in force do not have to work their "last day" if vacation leave is being exhausted.
Example of Vacation Leave Reinstatement:
Employee separates from employment on January 1, 2011 and has 260 hours of vacation leave at the time of separation. Employee will be paid out 240 hours of vacation leave. If the employee returns to work with a state government agency or state university within one year, or by January 1, 2012, then 20 hours of vacation leave will be reinstated to their leave account.
Bonus Leave
Unused Bonus Leave is paid out.
Sick Leave
Sick Leave is not paid out. If employees return to state employment within five years from the separation date, sick leave will be reinstated. Sick leave also transfers to other agencies.
Compensatory Time
Compensatory time balances are paid out for non-exempt employees. If exempt from overtime, compensatory time is forfeited.
Community Service Leave
The balance of community service leave can be transferred to other agencies.
Longevity
Longevity pay is paid to employees with at least 10 years of state service. Payment is made annually based on an employee's salary and total state service. Eligible employees who are reduced in force receive a pro-rated payment.
Reduction in Force Guidelines
For information regarding State of North Carolina RIF Guidelines, please go to:
Questions
For more information, contact Employee Relations at 919-513-0700.