EFFECTIVE DATE: June 14, 2019
ISSUE #: 6
PRESIDENT: Juan Sánchez Muñoz
PURPOSE
This PS defines fringe benefits for which University of Houston-Downtown (UHD) eligible
employees may qualify upon employment.
DEFINITIONS
2.1 FTE: An abbreviation for full-time equivalency that refers to the percentage of time and
effort for a position.
2.2 Benefits-eligible employees: Employees who work at least 20 hours per week for a
period of at least 4.5 continuous months, or for a full semester, excluding students
employed in positions which require student status as a condition of employment.
POLICY
3.1 UHD provides a number of group medical, dental, vision, disability and life insurance
plans, tax-advantage programs and other fringe benefits for eligible employees.
Detailed fringe benefits information and plan eligibility requirements are available in
Employment Services and Operations (ESO).
3.2 Optional group insurance is provided to eligible employees and, where applicable, their
dependents, at group plan costs. The University is authorized by state statute to
contribute a portion of eligible premium costs for enrolled, benefits-eligible employees
and qualified retirees. The Employees’ Retirement System of Texas (ERS),
administrators of the group benefit programs, sets the rules and regulations, selects the
underwriting insurance companies, and set the annual rates for all group benefits
programs offered at UHD.
3.3 The group insurance benefits offered to employees include medical plans, dental plans,
vision, life insurance and, disability plans, and flexible spending accounts.
3.3.1 . Coverage for health insurance for the employee and enrolled dependents
becomes effective the first day of the month following a 60-day waiting period
and ceases on the last day of the month during which the employee terminates.
The State pays the full premium cost for the employee and half for any
dependents. Eligible employees that work less than 30 hours per week are
required to pay half of the premium for health coverage.
3.3.2 Continuation of group health coverage for employees and qualified beneficiaries
after termination is available through the Consolidated Omnibus BudgetReconciliation Act of 1985 (COBRA) under certain conditions.
3.3.3 Optional coverages and flexible spending accounts do not require a waiting
period. An employee may elect optional coverages to become effective on the
first day of employment by completing and submitting the enrollment forms on
or before the first day of employment. Otherwise, the employee may submit
completed forms for optional coverage to become effective on the first day of
the following month. Enrollment in all optional coverage must occur within
thirty days of employment.
3.3.4 Opt-out credit is available to employees who choose not to enroll in medical
insurance. Under the opt-out credit, employees are eligible to receive a portion
of the state funding toward the purchase of dental, vision and Accidental Death
and Dismemberment (AD&D) coverage.
3.3.5 Changes to benefits are limited to the summer enrollment period and may require
evidence of insurability. Changes can also occur for a qualifying life event such as
marriage, death, divorce, etc.
3.4 While employees may choose to waive one or all of the group insurance plans,
enrollment in a retirement program is mandatory. A regular employee is required, as
condition of employment, to be a member of the Teacher Retirement System (TRS) or
the Optional Retirement System (ORP).
3.4.1 Membership in the Teacher Retirement System (TRS) of Texas is required for
all regular employees having FTEs of at least 50 percent and appointments of
one semester (4.5 months) or longer. Each member contributes, through regular
payroll deductions, a percentage of his/her gross salary. The state also
contributes a percentage of the employee’s gross salary to the employee’s
retirement fund. Vesting occurs after five years of state service. Current
information on the state and employee contributions is available in ESO.
3.4.2 Faculty and some employees having FTEs of 100 percent and appointments of
one semester (4.5 months) or longer may select enrollment in the Optional
Retirement Program (ORP) in lieu of participation in TRS. Eligibility for
participation in this plan is restricted to those employees meeting eligibility
criteria as provided by the Texas Higher Education Coordinating Board. Each
employee contributes, through regular payroll deductions, a percentage of
his/her gross salary. The state also contributes a percentage of the employee’s
gross salary to the employee’s retirement fund. Participation in ORP is a onetime election and must be made in writing within 90 days of the date an
employee becomes eligible. Vesting occurs after one year and one day of ORP participation. Current information on the state and employee contributions is
available in ESO.
3.4.3 In both TRS and ORP, the employee’s contributions are tax deferred. Funds
cannot be withdrawn for any reason unless the employee ceases employment.
3.4.4 Once ESO determines the employee has met all eligibility criteria for ORP,
arrangements to enroll in the ORP are made between the employee and a carrier
selected by the employee from a list of vendors approved by the University of
Houston System. UHD assumes no liability for the employee’s selection or
financial performance of an approved carrier.
3.4.5 Employees previously vested in ORP must remain with ORP as their retirement
plan. Furthermore, when an eligible employee elects participation in ORP, the
employee is no longer eligible for TRS unless employment with an institution of
higher education in Texas ceases and the individual becomes employed by the
Texas Public School System, or the employee moves to a position that is not
eligible for ORP participation before completing the vesting requirements.
3.4.6 A regular employee may also participate in supplemental retirement plans, with
no contribution from the State or System, through the State's Deferred
Compensation program (457) and/or the Tax Deferred Annuity (TDA) program
and/or the Roth 403 (b) program. Detailed information on these plans is
available in Employment Services and Operations (ESO).
3.5 Other fringe benefits available to eligible UHD employees are outlined below.
3.5.1 Hazardous Duty Pay. Law enforcement personnel are entitled to hazardous duty
pay. Increments accrue each year after one full year of service with the
University. Law enforcement officers eligible for hazardous play are not eligible
for longevity pay.
3.5.2 Longevity Pay. With the exception of faculty members and commissioned
police officers, regular full-time employees are entitled to receive longevity pay
after completion of two years’ employment with the state. Longevity pay is
computed at the rate of $20.00 per month for each two years of state service up
to and including 42 years of state service for a maximum of $420 per month.
Employees are responsible for informing ESO about other employment with the
State of Texas in order to have their longevity pay adjusted to reflect all such
prior service.
3.5.3 Paid Holidays. Regular employees are eligible for certain paid legal holidays
authorized by the State Legislature. Holidays shall be established by UHD in
accordance with state law. Employees will be notified of the holiday schedule
each fiscal year.
3.5.4 Paid Leave. UHD provides paid leave for regular employees in accordance with
State and federal guidelines. Detailed information pertaining paid leave can be
found in SAM 02.D.01, Vacation and Sick leave and PS 02.A.09 Miscellaneous
Leave Policy and SAM 02.D.02 Sick Leave Pool.
3.5.5 Social Security. As an employer, the University of Houston System complies
with the relevant provisions of the Social Security Act. All employees are
required to participate in the federal Social Security program as a condition of
employment.
3.5.6 Staff Development and Training. UHD provides staff training and development
benefits to all regular employees under the State Employees Training Act. For
more information concerning staff training and development, refer to
PS.02.B.12, Staff Training and Development Policy.
3.5.7 Unemployment Compensation. All faculty and staff are covered by the Texas
Unemployment Compensation Act and may be eligible for weekly benefit
payments during a period of unemployment. The Texas Workforce Commission
determines if a former employee is eligible for unemployment compensation.
The cost of unemployment compensation insurance is paid by the System and
no deductions are made from employee pay for this purpose.
3.5.8 Workers Compensation. All System employees paid through the payroll system
are eligible, under the provisions of the Texas Workers' Compensation Act, to
receive monetary compensation and medical coverage for job-related injuries or
illnesses in the event of injury, illness, or death while performing services.
Detailed information pertaining to workers' compensation may be found in PS
02.A.25.
PROCEDURES
There are no procedures associated with this policy.
REVIEW PROCESS
Responsible Party (Reviewer): Vice President for Employment Services and Operations.
Review: Every three years on or before July 1st
.
Original on file in Employment Services and Operations
POLICY HISTORY
Issue #1: 04/25/94
Issue #2: 08/09/99
Issue #3: 07/11/08
Issue #4: 04/05/11
Issue #5: 07/09/15
REFERENCES
UH System Administrative Memorandum 02.C.01
Teacher Retirement System (TRS) of Texas
Employees’ Retirement System of Texas (ERS)
