FURLOUGH EXCHANGE PROGRAM (FEP) TRAINING · FURLOUGH EXCHANGE PROGRAM (FEP) TRAINING. Presented by:...

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FURLOUGH EXCHANGE PROGRAM (FEP)

TRAINING

Presented by:Academic Personnel OfficePayroll Services

Rev. 10/23/09

Today’s Agenda

Recap Furlough Program•

EDB Samples

Furlough Exchange Program

Description of Program:

FEP allows certain Academics subject to the Furlough/Salary Reduction Plan to devote extra effort to extramurally funded projects in exchange for furlough time.

Eligibility:

• Must be in a Professorial or equivalent title identified in APM 115•

Must have approval from granting agency & terms of

award, can charge effort to extramural funding.

Particulars of the FEP

• Furlough days will be forfeited

• Must be in service during campus closures

• Will not receive additional consulting days

• Teaching & service commitments may not be reduced

• Extramural awards and restricted gifts and endowments that can be used for research support may be used to qualify for FEP.

• During periods of non-participation, faculty is subject to the Furlough Plan reduction

• May not earn more than annual pre-reduced compensation

Approval Process:

The percentage of the extra effort will be equal to the percentage of the salary reduction the faculty member would have been subject to under the Furlough Plan.

There are 4 Salary Band Reduction Table based on period of participation.

In order to apply one of these tables, the MCB must be determined.

Find the MCB on the IINS Screen

To determine the employee’s Salary Band, view the IINS screen for the MCB salary.

This rate changes on January 1st

each year.

Participation Options

Option 1 –

Full Year–

Fiscal Year Faculty

Academic Year FacultyOption 2 –

Partial Year Basis

Quarter•

Winter

Spring–

Semester•

School of Law

EDB UPDATE PROCESS

Steps and Examples

Suspense DistributionsEDB Preparers must place the regular earnings (REG and RGA) distributions in “suspense”

while the

employee is paid from the FEP distribution.•

A suspense appointment/distribution is a way to hold funding for a budgeted position.

It will also ensure that the appointment and distribution data will appear on the Effort Reporting System and Staffing Lists correctly.

Please refer to the EDB Manual, Section B1.3 Appointment/Distribution Suspense Processing for more information on suspense processing.

Suspense DOS Codes: REG = RES RGA = RSA

Changing Regular Earnings DOS Codes During FEP

Assistant Professorial titles normally have a distribution with the regular earnings DOS code of “RGA”

While the appointee is on FEP the DOS code must be changed from “RGA”

to “REG”.

The DOS code change is only

during the active FEP period.

Full Year Participation

Faculty must participate for entire academic year•

Period of Service–

Academic year faculty = 7/109 –

06/30/10

Fiscal year faculty = 9/1/09 –

8/31/10–

Faculty hired mid-year

Begin date = onset of approved appointment•

End date for fiscal year faculty = 8/31/10

End date for academic year = 6/30/10

Full Year Participation

FEP participation in the fall quarter is available only to those making a full-year commitment to participate in the FEP

Since fall quarter includes July & August, retro adjustments to transfer funds from 19900 to the appropriate extramural fund source will need to be completed. Note, there is no loss of wages to the faculty member.

EAPP: Steps to Update Full Year Participation

Step 1: Update the existing REG/RGA distributionPlace the employee’s existing regular earnings distribution

(REG/RGA) in “suspense”

(RES/RSA).a.

Change Pay Begin/Pay End dates to 07/01/09 -

06/30/10

Tab to and change DOS Code to RES or RSA. (see prior slide for correct DOS code).

Do not

change the rate or percent of time

Step 2: Delete the SRB distrubtion(s) a.

Tab to the command line (arrow)

Type “delete”

and the distribution # for the SRB line(s).c.

Hit Enter. The line should be deleted.

Step 3: Determine the Exchange Percentage.a.

Review the employee’s MCB rate on the IINS screen.

Using the appropriate Participation Band Chart, determine the employee’s exchange percentage.

EAPP: Steps to Update Full Year Participation (Cont’d)

Step 4: Add new regular earnings distribution. a.

Copy RES/RSA line(s) to new distribution number.

Change the Dist % to new reduced percent of time (regular earnings –

exchange percent)

Change DOS Code: REG.Do not

change Pay Begin/Pay End dates or rate.

Ex. Employee is on salary band 5 which equals 8%. The REG/RGA Dist% is .9200. ( 1.0000 -

.0800 = .9200)

Step 5: Add the FEP distribution.a.

Add new distribution number.

Enter Action Code: 18c.

Enter the FAU. This should be an extramural funding source.

Enter exchange percentage (ex. .0800) in Dist % field.e.

Enter Pay Begin/Pay End as 07/01/09 –

06/30/10

Enter DOS Code: FEP

IAPT: Example of Completed Full Year Participation in FEP

Partial Year Participation

Participation must be on a quarterly or semester basis and for the entire term

For academic year faculty on a quarter campus, begin date = 11/1/09 or 3/1/10

For academic year faculty on a semester system (School of Law), begin = 1/1/10

Fiscal year faculty may elect a begin date of either 10/1/09,1/1/10, or 4/1/10

Fiscal year faculty who choose one or two quarters (less than full year) may have to be changed back to SRB at the end of the FEP period. (See Fiscal Year Appointee –

Two Quarters for an example).

EAPP: Steps to Update Partial Year Participation

Step 1: End the existing regular earnings and SRB distributions

Preparers will have to end the regular earnings (REG/RGA) and salary reduction (SRB) distributions.

End the distributions one day prior to the FEP start date. (ex. 10/31/09)Do not

change the following fields: Rate/Amt, Dist %, or

DOS Code.

Step 2: Create “Suspense”

regular earnings distribution . a.

Copy the regular earnings (REG/RGA) to a new distribution.

Enter the employee’s normal percent of time (i.e. 1.000, .5000, etc.) in the Dist % field.

Enter the begin date of the FEP per the agreement (ex. 11/01/09) in the Pay Begin field.

Enter the last day of the FEP per the agreement (ex. 02/28/10) in the Pay End field.

Enter DOS code RES or RSA.

EAPP: Steps to Update Partial Year Participation (Cont’d)

Step 3: Add reduced regular earnings distribution.a.

Copy RES/RSA line(s) to new distribution number.

Change the Dist % to new reduced percent of time (regular earnings –

exchange percent).

Enter DOS Code REG.Do not

change Pay Begin/Pay End dates or rate.

Ex. Employee is a Partial Year Participant (One Quarter). Employee is on salary band 4 which is 10.50%. The REG/RGA Dist% is .8950 ( 1.0000 -

.1050 = .8950)

Step 4: Add the FEP distribution.a.

Add new distribution number.

Enter Action Code 18c.

Enter FAU. This should be an extramural funding source.

Enter exchange percentage (ex. .1050) in the Dist % field.e.

Enter the begin and end dates per the FEP agreement (ex. 11/01/09 –

02/28/10) in the Pay Begin/Pay End fields.

Enter DOS Code: FEP

Example of Partial Year Participation –

4 Months Pay (Winter Quarter)

(Page 1 of 2)

4 Months Pay (Winter Quarter)

(Page 2 of 2)

4 Months Pay (Spring Quarter)

(Page 1 of 2)

4 Months Pay (Spring Quarter)

(Page 2 of 2)

8 Months Pay (Winter & Spring Quarters)

(Page 1 of 2)

8 Months Pay (Winter & Spring Quarters)

(Page 2 of 2)

One Semester (6 Months Pay -

Law School)

(Page 1 of 2)

One Semester (6 Months Pay -

Law School)

(Page 2 of 2)

Example of Full Year Participation (Fiscal Year Appointee)

(Page 1 of 2)

Example of Full Year Participation (Fiscal Year Appointee)

(Page 2 of 2)

Two Quarters (Fiscal Year Appointee)

(Page 1 of 2)

Two Quarters (Fiscal Year Appointee)

(Page 2 of 2)

Example of Fiscal Year Participation (Health Sciences Compensation)

(Page 1 of 7)

(Page 2 of 7)

(Page 3 of 7)

(Page 4 of 7)

(Page 5 of 7)

(Page 6 of 7)

(Page 7 of 7)

REPORTING TIME – PTR PROCESS

Steps and Examples

Appointees will not

accrue furlough leave time while participating in FEP.

Some appointees may accrue furlough time (FUA) while on an SRB distribution.

All furlough accruals (FUA) must be used by 08/31/10.

Furlough Time Accruals

Retroactive Adjustments for Fiscal and Full Year Participants

Fiscal and Full Year participants' earnings will have to be retroactively adjusted in order to correct the following data:

Reduce the regular earnings distributions (REG/RGA) to the new regular earnings distribution percent.

Move earnings from “included”

funding source to FEP funding source.

Periods to be adjusted are PPE 07/31/09 and 08/31/09.

Steps to Process Retroactive Adjustments to FEP

To process retroactive adjustments, please do the following:

Review the IDER screen to determine the paid transactions for the previous pay periods (ex. PPE 07/31/09 and 08/31/09).

Go into EDAT menu.3.

Schedule and process an EDLR for the employee’s next pay day (ex. MO 10/31/09).

Reduce the regular earnings to the new REG/RGA distribution percent.

Example: Employee was paid 1.000 REG for PPE 07/31/09. New REG distribution is .9200. (1.0000 -.9200 = .0800)

To correct the 07/31/09 and 08/31/09 pay end dates: RX –

the REG transactions) by the new reduced time (ex. .0800).LX –

the FEP distribution data (ex. 0800)6.

Update the transactions.

Example of correcting PPE 07/31/09 transactions.

Steps to Process Retroactive Adjustments to FEP (Cont’d)

Transfers of Funds –

Exception to Rule for PPE 07/31/09 and 08/31/09

Departmental Preparers will process EDLR (RX/LX) transactions for pay period end dates of 07/31/09 and 08/31/09 in order to:

transfer the earnings from an “included”

FAU to an extramural funding source.

correct the employee’s regular (REG/RGA) percentage of time

move earnings from the DOS code REG/RGA to FEP.

The use of EDLR to transfer funding to FEP funding sources is a one time “exception to the rule”.

Because EDLR transactions are used in the correction of the FEP,

all benefits charges may not

move with the RX/LX transactions.•

Benefits charges that are not moved will have to be processed as

journal entries to the General Ledger (GL) by Payroll Services.

Once the transactions appear on the PPP5302 -

Distribution of Payroll Expense Report, please contact 310-794-8726 for assistance in moving these benefits .

Transfers of Funds –

Normal Process After PPE 09/30/09

An Expense Transfer transaction (EDTS/EDTM) is the correct method to transfer payments from one funding source to another.

Preparers should use the EDTS/EDTM screens to transfer payments to/from an FAU for transactions that were processed after 10/01/09 (PPE 09/3/09 or later).

Furlough Exchange Program (FEP) Participation Salary Band Tables

Full Academic Year Participation Bands

Salary Band MCB Furlough Days (Approximate)

Exchange Percent (Approximate)

1 <=40 7 4.00%

2 41-46 9 5.00%

3 47-60 10 6.00%

4 61-90 12 7.00%

5 91-180 14 8.00%

6 181-240 15 9.00%

7 >240 17 10.00%

Participation –

One Quarter Bands(4 Months Pay)

1 <=40 4 6.00%

2 41-46 5 7.50%

3 47-60 5 9.00%

4 61-90 6 10.50%

5 91-180 7 12.00%

6 181-240 8 13.50%

7 >240 9 15.00%

Participation -

Two Quarters Bands( 8 Months Pay )

1 <=40 6 5.00%2 41-46 8 6.25%3 47-60 8 7.50%4 61-90 10 8.75%5 91-180 12 10.00%6 181-240 13 11.25%7 >240 14 12.50%

Participation -

One Semester Bands( 6 Months Pay )

1 <=40 5 5.33%2 41-46 6 6.67%3 47-60 7 8.00%4 61-90 8 9.33%5 91-180 9 10.67%6 181-240 10 12.00%7 >240 11 13.33%

Contacts

For inquiries regarding the policies for the Furlough Exchange Program:

Departmental Dean’s OfficeAcademic Personnel Office –

(310) 825-5462

For inquiries regarding the PTR ProcessPayroll Services –

(310) 794-8752

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