HR Policy #60-100

The University offers an array of benefits to all qualified employees. To be eligible, an employee must hold a regular full-time position. Individuals employed in full-time temporary positions are eligible to participate in the University's benefit program if employment is expected to continue nine (9) months or longer. Individuals holding part-time positions are not eligible to participate in the University's benefit program.

Exception for Mandatory Retirement Contributions
Consistent with retirement system regulations, retirement contributions must be withheld for individuals holding part-time positions if the appointment averages seventy (70) percent time or more for Kentucky Teachers' Retirement System (KTRS) covered positions OR if the appointment averages one hundred (100) hours or more per month for Kentucky Employees' Retirement System (KERS) covered positions. Mandatory retirement contributions only apply to individuals whose employment is expected to be six (6) months or greater. Should an appointment originally be established for less than six (6) months, but later exceed this limit, retirement contributions must be initiated at the earlier of the following: 1) at the time employment extends to six months or more, or 2) at the time it is determined that employment will exceed the six (6) month limitation, if sooner than six (6) months.

Official Leaves of Absence
Employees who are granted an official leave of absence without pay may elect to continue applicable benefits provided arrangements are made with the Department of Human Resources and the total premiums for coverage are paid by the employee. The University will continue to pay its share of employer sponsored benefits during any approved leave of absence. Vacation and medical leave are not earned during an unpaid leave of absence. Service credit in KTRS or KERS, as applicable, is not earned during an unpaid leave of absence. However, employees may elect to purchase retirement credit for qualifying leaves following the rules established by the appropriate retirement system. Employees who elect to purchase such credit shall be responsible for all costs and payments to the respective retirement system.

Sabbatical Assignments

Employees Who Participate in KTRS
Employees who participate in KTRS and who are granted sabbatical assignments with full pay or half pay shall not earn retirement service credit nor make retirement contributions to KTRS during the period of their sabbatical assignment. Similarly, the University shall not make retirement contributions on behalf of employees. Employees may continue to participate in other employee benefit programs and the University will continue to pay its applicable share of (non-retirement) employer sponsored benefits.
Upon returning to active employment, employees shall then become eligible to purchase retirement service credit for sabbatical assignments under the guidelines established by the KTRS. Employees shall be responsible for the full cost of any service credit purchased except that the University will pay a share of the cost under certain conditions as permitted by KTRS regulations. If the sabbatical service credit is purchased by the returning employee prior to June 30th of the year in which the sabbatical occurred, the employee shall pay 6.16% of the applicable salary and the University shall pay 2.215% of the applicable salary.
In cases where the sabbatical service credit is purchased in the fiscal year immediately subsequent to the year in which the sabbatical occurred, the University shall pay 2.215% of the applicable salary plus related interest charges. The employee shall pay 6.16% of the applicable salary plus related interest charges.
If the sabbatical service credit is purchased by the employee at any time after the immediate subsequent year, the University shall not participate in the cost of the purchase and the employee shall pay 8.375% of the applicable salary plus interest charges as determined by KTRS.

Definitions of Applicable Salary for Sabbatical Service Credit
In cases where a sabbatical assignment extends for the complete fiscal year or is limited to the first semester of a fiscal year, the service credit cost calculation is based on the prior fiscal year’s salary. If a sabbatical assignment occurs in the second semester of a fiscal year, the service credit cost calculation is based on the current fiscal year’s salary.

Employees Who Participate in the ORP (Optional Retirement Plan)
Employees who participate in the ORP—a defined contribution plan—and who are granted sabbatical assignments with full pay or half pay shall continue to participate in the ORP and make contributions just as if in a regular employment status. Similarly, the University will continue to make customary retirement contributions.