FAQ on May 2020 Payroll Announcement
May 12, 2020
Longwood classified and A/P employees will receive from HR an individualized email explaining how the temporary payroll reduction plan will impact them specifically. This FAQ offers additional information that may be helpful to all employee classes regarding such issues as benefits and leave, along with specific questions that may be particular to Classified Staff, A/P and miscellaneous Staff, as well as Faculty.
We recognize how important it is for people to feel they have a full understanding of what will happen, and so we strongly encourage you to reach out directly by email to HR at HRCovid19@longwood.edu so we can help you with individualized questions.
General Q&A
Who is not affected by the temporary payroll reduction plan?
Every Longwood employee is affected with the following exceptions:
- Law enforcement officers and boiler plant operators will not be subject to the reductions due to the necessity of their work and the overtime funding it would take to provide coverage.
- New employees starting after 5/1 will not be required to be subject to the pay holiday reduction.
- Staff moving to new roles will take a payroll reduction based on their salary as of 5/1.
- Grant funded positions or positions that are required full matches for grant funds will not be impacted by reductions.
How are my health insurance benefits affected?
- Employees will remain on full health benefits, and Longwood will continue to pay its portion of those costs, as before. Employees will continue paying their portion of health insurance premiums on a pre-tax basis.
- This change is not considered a qualifying mid-year event to change health insurance plans, change dependents or change Flexible Spending Accounts.
- Please note the Open Enrollment period to make such changes runs only through Friday, May 15. Changes made during open enrollment period will be effective starting with the July 16th paycheck.
How are my retirement benefits affected?
- Employees under VRS and VRS Hybrid: Employees will continue to acquire credits as before based on months worked, with no reduction despite the temporary decrease in hours and pay. Employees will continue to pay their 5 percent contributions based on their original salary, and Longwood will continue to make its contributions based on full salary. Employees who are enrolled in the VRS Hybrid Retirement will continue to contribute the mandatory and voluntary contributions. Employees can adjust their voluntary contributions at any time, with changes taking effect with the start of the following quarter. Example: voluntary contributions changed before June 15th at 4 pm, will become effective with July 16th paycheck.
- Employees under Optional Retirement Plan (ORP): Longwood will continue contributing its portion based on an employee’s full, unreduced salary.
- Employees with Supplemental Retirement Plans: For employees who have 457 or 403(b) supplemental retirement plans, Longwood will continue its previous cash match for its portion. For the employee contribution, employees can make changes to the contribution amount or percentage to be withheld from their paycheck. If they currently have elected to have a set percentage withheld, and do not make changes, the amount of the employee contribution will decline slightly during the time of the temporary pay reduction.
Please note while Longwood intends to continue its retirement contributions at full, unreduced salary levels, we are still awaiting guidance along with other Virginia public universities on precise mechanics due to plan provisions.
How are my life insurance benefits affected?
Longwood will continue to pay the premiums of Basic Group Life Insurance plan. Optional Life Insurance payroll deductions will continue as normal.
I have other questions regarding benefits. Who do I contact?
Please contact hrbenefits@longwood.edu
Do employees still receive the May 22 and October 9 recognition days awarded by President Reveley and the Executive Steering Council?
Yes, these recognition days were awarded on January 30th before the Governor’s hiring and compensation freeze.
May I receive unemployment benefits during this payroll reduction?
You should consult with the Virginia Employment Commission to determine Eligibility for Unemployment Compensation benefits, especially during the COVID-19 pandemic as new federal regulations are in place.
Are these payroll actions considered furloughs?
The term furlough is generally understood and defined to mean temporary layoffs, eliminating all working hours, rather than temporary reductions in paid working hours or salary. However, for classified staff the Commonwealth’s time-keeping software may record these hours under a furlough category (see Questions for Classified Staff below).
Questions for Classified Staff
How will I be affected by this reduction?
Effective 5/10/2020 your work hours will be reduced by 8 hours per pay period. This period of reduced work hours will end December 24, 2020.
Do I have to take the 8 hours in one day?
No, hours can be spread out over the pay period. You will work with your supervisor to schedule this time.
How do I record my 8 hours not working?
In TAL, please record these 8 hours under Pay Docking, category TWFR Furlough, and put in the comments section: hours.
How is my compensation impacted?
Your pay will be reduced by the 8 hours not worked for that pay period.
When will I see the reduction in my paycheck?
Beginning with the June 1, 2020 paycheck through the December 31, 2020 paycheck. The January 15, 2021 paycheck will return to current base.
What if I received recognition leave for my service award this year and might not be able to use it this year?
If unable to use the leave by the required deadline, we can extend the remaining balance.
Will I be able to use my leave to supplement my pay?
No, you cannot use accrued annual, family and personal, compensatory, recognition, or overtime leave to cover the hours reduced.
How is leave affected during this period?
- Annual Leave. Annual leave can be used for absences on scheduled workdays. Annual leave accruals will be on a prorated amount due to the reduction in work hours. Annual leave carryover limits will still apply on January 9th. Leave accruals during this period:
Annual Leave Accrual Years of Service Normal Accrual Accrual 5/10/20 – 12/24/20 < 5 4 3.6 5 – 9 5 4.5 10 – 14 6 5.4 15 – 19 7 6.3 20 – 24 8 7.2 25 + 9 8.1 - Parental Leave. Parental Leave is available to eligible employees. Parental leave cannot be used to supplement while on Short-term disability. Parental leave can only be used on scheduled workdays. Unused Parental leave will expire six months from the birth or adoption date.
- Traditional Sick Leave. Traditional Sick Leave will accrue on a prorated basis.
- VSDP Sick Leave can be used to cover absences on scheduled workdays.
- VSDP- Short-term Disability. Employees under Short-term disability will continue on the income replacement level based on their full, unreduced salary. Employees will not be able to use personal leave balances to supplement. Disability credits would be the only leave that can be used as a supplement.
- VSDP Family & Personal Leave can be used on scheduled workdays only.
Questions for A/P Staff
How will I be affected by this reduction?
Effective 5/10/2020 through 5/9/2021 you will have an annual salary reduction based on a progressive scale allocated in quartiles. Like the tax system, the progressive reduction model reduces your first $45k by 7%, additional earning between 45,001-$60,000 are reduced by 9%, and so on as illustrated in the below table. This system ensures that no one’s total pay in this category is effectively reduced more than 9.9%. Examples are provided in the second table below. You will receive 30 days of leave in exchange for the reduction.
| From | To | Rate |
|---|---|---|
| $ -- | $45,000 | 7% |
| $45,001 | $60,000 | 9% |
| $60,001 | $80,000 | 11% |
| $80,001 | $140,000 | 12% |
| Annual Salary for example A/P employees | Actual % reduction |
|---|---|
| $35,568 | 7% |
| $46,000 | 7.04% |
| $62,000 | 7.61% |
| $98,000 | 9.40% |
Why am I receiving 30 days of additional leave?
This is in exchange for your salary reduction in FY 2021.
What are the effective dates of the reduction?
Beginning with the June 1, 2020 paycheck through the May 16, 2021 pay check. The June 1, 2021 paycheck will return to normal.
Will I be able to use my existing leave to supplement my pay?
No, you cannot use accrued annual, family and personal, compensatory, recognition, or overtime leave to cover the hours reduced.
I received recognition leave for my service award this year and might not be able to use it this year?
If unable to use the leave by the required deadline, we can extend the remaining balance.
How do I record the 30 days of additional leave?
In BANNER, please record your hours under Pay Holiday. We recommend you use these Pay Holiday leave hours ahead of annual leave.
How are other types of leave affected during this period?
- Parental Leave. Parental Leave is available to eligible employees. Parental leave cannot be used to supplement while on Short-term disability. Parental leave can only be used on scheduled workdays. Unused Parental leave will expire six months from the birth or adoption date.
- VSDP Sick Leave can be used to cover absences on scheduled workdays.
- VSDP Family & Personal Leave can be used on scheduled workdays only.
- VSDP- Short-term Disability. Employees under Short-term disability will continue on the income replacement level based on their full, unreduced salary. Employees will not be able to use personal leave balances to supplement. Disability credits would be the only leave that can be used as a supplement.
Questions for Faculty
How will I be affected by this reduction?
Faculty will take a flat percentage payroll reduction of 4, 6 or 8 percent, depending on their salary quartile referenced below. These reductions are married to time unpaid associated with the weeks between the semesters in December and January. All pay reductions will be amortized from 8/10/2020-8/9/2021 and then reset to the regular base salary for the rest of the fiscal year. The pay reductions for the coming year will be listed in your contract for the coming year.
| From | To | Rate | Weeks |
|---|---|---|---|
| $ -- | $59,268 | 4% | 2 |
| $59,269 | $66,847 | 4% | 2 |
| $66,848 | $76,239 | 6% | 3 |
| $76,240 | $152,000 | 8% | 4 |
What are the dates the reductions will be reflected in paychecks?
Beginning with the September 1, 2020 paycheck through the August 16, 2021 pay check. The September 1, 2021 paycheck will return to normal base.
What leave is affected during this payroll reduction?
- VSDP Sick Leave can be used to cover absences on scheduled workdays.
- VSDP Family & Personal Leave can be used on scheduled workdays only.
- VSDP- Short-term Disability. Employees under Short-term disability will continue on the income replacement level based on their full, unreduced salary. Employees will not be able to use personal leave balances to supplement. Disability credits would be the only leave that can be used as a supplement.