SECTION 6.85 DONATED LEAVE FOR EMPLOYEES
Last Update: 11/03
I.
Policy
Noncontract covered
employees, as well as employees covered by the United Electrical/Iowa United
Professionals (UE/IUP), and State Police Officers Council (SPOC) collective
bargaining agreements are eligible to donate or receive donated leave
(vacation) hours for a catastrophic illness.
Employees covered by the American Federation of State, County, and
Municipal Employees (AFSCME) are eligible to donate or receive donated leave
(vacation) hours. They are also
eligible to donate compensatory leave, holiday compensatory leave and banked
holiday time to any State employee.
This policy includes Board of Regents and Community Based Corrections
employees who are covered by one of the above-referenced collective bargaining
agreements.
Contributions shall be
designated as “donated leave” and shall be subject to the rules, policies and
procedures of the Iowa Department of Administrative Services – Human Resources
Enterprise (DAS-HRE).
II.
Definitions
A.
“Employer” means the State of Iowa through the
DAS-HRE. When applicable, it also means
an appointed or elected chief administrative head of a department, commission,
board, independent agency, or statutory office or that person's designee.
B.
“Employee” means a full-time or part-time executive
branch employee who is eligible to accrue vacation. “Employee” also means the employee’s designee.
C.
“Catastrophic illness” means a physical or mental
illness or injury, as certified by a licensed physician, that will result in
the inability of the employee to work for more than 30 work days on a
consecutive or intermittent basis.
D.
“Donated leave” means vacation leave, compensatory
time, and holiday compensatory time (hours) donated to employees as a monetary
benefit only. Recipients will not
accrue vacation and sick leave benefits based on donated leave hours. Donated leave is not considered to be
includible compensation. It is not pay
that the employee earned through the performance of service. It is payment of a monetary benefit only.
A.
In order to receive donated leave for a
catastrophic illness, an employee must have a catastrophic illness as defined
in II-C above.
B.
The employee must:
1.
have exhausted all paid leave; and
2.
not supplement workers’ compensation to the extent
that it exceeds more than 100 percent of the employee's pay for his or her
regularly scheduled work hours on a pay period-by-pay period basis; and
3.
not receive long-term disability (LTD); and
4.
be approved for and using or have exhausted Family
and Medical Leave Act (FMLA) leave hours if eligible; and
5.
be on approved leave without pay for medical
reasons during any hours for which he or she will receive donated leave.
C.
The physician’s statement on the “Donated Leave For
Catastrophic Illness Application” (CFN 552-0611) form is the basis for
determining if an employee meets the requirements of the catastrophic illness
definition. The employer will determine
if the employee meets the remaining eligibility requirements in “Part C.”
D.
Employers may, at their department’s initiative and
expense, seek second opinions or updates from physicians regarding the status
of an employee's illness or injury. If
the employee is receiving FMLA leave, a second opinion must be obtained from a
physician who is not employed by the State.
IV.
Program Requirements
A.
Hours shall be donated in whole-hour increments,
however, they may be credited to the recipient in other than whole hour
increments. All of the
recipient’s accrued leave must be used before donations will be credited to the
recipient. Hours will be credited in
increments not to exceed the employee’s regularly scheduled work hours on a pay
period-by-pay period basis. Recipients
will not accrue vacation and sick leave on donated leave hours.
B.
Approval for use of donated leave shall be for a
period not to exceed one year either on an intermittent or continuous basis for
each occurrence.
C.
Donated leave shall be irrevocable after it is
credited to the recipient. Donated
leave hours not credited to the recipient will not be deducted from the donor’s
leave balance.
D.
Donations shall be credited on a first-in/first-out
basis according to the date and time on the “Donated Leave for Catastrophic
Illness Contributions” (CFN 552-0612) form.
E.
Donated leave for catastrophic illness will not
“restrict” the right to terminate probationary employees. The period of probationary status and the
pay increase eligibility date will be extended by the amount of time the
employee received donated leave.
F.
The employer shall post a “Request for Donated
Leave for Catastrophic Illness Announcement” (CFN 552-0620) form indicating
that an employee is eligible to receive donated leave and the name of the
person to contact for the donation forms.
G.
Leave without pay provisions shall apply to the
following benefits: health, dental,
basic life, long-term disability, pre-tax, deferred compensation, tax sheltered
annuities, holiday pay, sick leave accrual, vacation leave accrual, shift
differential pay, longevity pay and cash payments. In addition, employees receiving donated leave for catastrophic
illness will not be eligible for leadworker pay, extraordinary duty pay
or special duty pay. When FMLA leave
and donated leave for a catastrophic illness are used concurrently, the State
is obligated to pay its share of health and dental insurance as long as the
employee continues his or her share of the premium, if any. Once FMLA is exhausted and the employee is
receiving only catastrophic illness payments, the employee must pay the entire
health and/or dental premium. The State
also maintains an employee's basic life and long-term disability insurances
during periods of FMLA leave.
H.
Employees may choose to continue or terminate their
optional deductions (e.g., miscellaneous insurance, savings bonds, “One Gift”
and credit union) while using donated leave hours. Mandatory deductions are taken from gross pay first, then
optional deductions as funds are available and as authorized by the employee. Union dues deductions will continue as long
as the employee has sufficient earnings to cover the dollar amount certified to
the employer after deductions for social security, federal taxes, state taxes,
retirement, deferred compensation/annuities, health, dental, life and dependent
care.
I.
Contributions to the employee’s dependent care
account will not be allowed during a period of leave without pay. Claims will not be paid for dependent care
while an employee is on leave without pay, unless the employee is not capable
of self- care.
J.
If an employee applies for and is approved to
receive LTD benefits, he or she may continue to receive donated leave
contributions for up to one year on an intermittent or continuous basis. An employee may terminate donated leave
contributions at any time. An employee
who continues to receive donated leave after LTD benefits have been approved
will not be eligible to draw LTD benefits until the donated leave has been
used. Donated leave hours not used are
not credited to the recipient and are not deducted from the donor’s leave
balance.
NOTE: When questions arise, departments are
encouraged to consult with their DAS-HRE personnel officer. You will be the custodian of your
department’s confidential donated leave records. Please remember that your records must be accessible to State
Auditors upon request.
FORMS
A.
Donated Leave for Catastrophic Illness Application
CFN 552-0611 (Attachment A)
1.
Upon request, provide the employee with the
application form.
2.
The employee completes “Part A,” the personnel
assistant may be asked to provide information needed to complete “Part A.”
3.
The employee’s physician completes “Part B.”
4.
Upon receipt, the employer or the employer's
designee verifies criteria in “Part C.”
a.
If the employee does not meet one or more of the
criteria, the employer will retain the application and advise the employee in
writing of the determination (the employee may meet the criteria in the
future).
b.
If the employee meets all of the criteria, the
employer will retain the original of the application.
B.
Donated Leave for Catastrophic Illness Request CFN
552-0620 (Attachment B)
1.
The recipient’s personnel assistant will complete
the request form and post it throughout only the employing department for as
long as the recipient qualifies to receive donated leave. The employing department is not required to
post the employee's request in other departments; however, donated leave hours
can be received from executive branch employees outside the employing
department.
2.
When the employee is no longer in need of donated
leave, the recipient’s personnel assistant will advise only the personnel
assistants who have been involved.
C.
Donated Leave for Catastrophic Illness Contribution
CFN 552-0612 (Attachment C)
1.
The employee donating leave will complete “Part A”
and must agree to donate leave in whole hour increments.
2.
The donating employee’s personnel assistant will
complete “Part B.”
a.
The donating employee’s personnel assistant will
retain the original.
b.
The donating employee will receive a copy.
c.
The recipient’s personnel assistant will receive a
copy.
D.
The recipient’s personnel assistant will complete
“Part C.” Donated leave does not have
to be credited in whole hour increments.
1.
The recipient’s personnel assistant will return the
completed contributions form to the donor’s personnel assistant prior to the
pay period in which the donation is to be credited. Payroll information (P-1 and/or P-9 forms) must be completed.
2.
Information regarding recipients, donors, and the
number of leave hours donated is confidential and will be treated as such by
each agency involved. Donors also
should treat information regarding the recipients, and the number of leave
hours as confidential, but they are not prohibited from telling the recipient
if they choose to do so.
3.
Donated leave hours are not tax-deductible.
E.
Personnel Action (P-1). To be completed by the recipient’s personnel assistant using
leave code 54, 55 or 58.
1.
Code 54, Medical leave without pay (under four
months) – Optional Remark Code 235, Catastrophic illness leave without pay granted.
a.
Requires an expiration date of four months or less.
b.
Mandatory deductions are taken (state, federal and
FICA taxes, and retirement).
c.
Voluntary deductions (credit union, bonds, etc.)
are taken unless the employee takes action to stop them.
d.
Automatic deposit remains in effect.
e.
Life insurance: the State’s share of basic life
premiums will be paid automatically. If
the employee has additional life insurance and the premium was not
automatically paid, he or she must write a check payable to the “Iowa State
Treasurer” for the correct amount and forward it to the personnel assistant.
f.
Health and dental insurance: the employee must pay both the state and
employee shares, unless the leave has been designated as FMLA qualifying
leave. If so, the employee must pay
only his or her share of health and dental insurance. Once the FMLA leave is exhausted the employee must pay both the
state and employee's shares of the premium.
If the employee has Wellmark or Delta Dental (DD) the checks must be
made payable to the “Iowa State Treasurer.”
If the employee has State Police Officers Council (SPOC) or a Health
Maintenance Organization (HMO) the checks must be made payable to the specific
carrier. The employee’s checks need to
be sent to the personnel assistant to process.
g.
Premium Conversion Program (Pre-Tax) remains in
effect.
h.
Flexible Spending Accounts: Payroll deductions for
the health and dependent care flexible spending accounts stop. Employees who return to work within 30 days
of the date the leave began are automatically reinstated in the flexible
spending account program. Employees who
return to work more than 30 days after the leave began may make a new election
to participate in the flexible spending account program.
i.
Deferred Compensation: Payroll deductions for the Retirement Investors’ Club (deferred
compensation) stop. Employees who wish
to begin contributions upon return to work must submit a completed New Account
& Change Form to their personnel assistant.
2.
Code 55, Medical leave without pay (over four
months) – Optional Remark Code 235, Catastrophic illness leave without pay
granted.
a.
Requires an expiration date over four months, if
you know the date, enter it. If not,
use a one year expiration date.
b.
Mandatory deductions are taken (state, federal and
FICA taxes, and retirement).
c.
Voluntary deductions (credit union, bonds, etc.)
are taken unless the employee takes action to stop them.
d.
Automatic deposit remains in effect.
e.
Life insurance: state share transfers must be
completed to pay basic life insurance premiums. If the employee has additional life insurance, he or she must
write a check payable to the “Iowa State Treasurer” for the correct amount and
forward it to the personnel assistant.
f.
Health and dental insurance: the employee must pay
both the state and employee shares, unless the leave has been designated as
FMLA qualifying leave. If so, the
employee must pay his or her share of health and dental insurances. Once the FMLA leave is exhausted, the
employee must pay both the state and employee’s share of the premium. If the employee has Wellmark or Delta Dental
the checks must be made payable to the “Iowa State Treasurer.” If the employee has SPOC or an MCO, the
checks must be made payable to the specific carrier. The employee’s checks need to be sent to the personnel assistant
to process.
3.
Code 58, Catastrophic illness leave with pay
(intermittent use). Regular hours and
donated leave payments. (Regular hours
mean hours worked, sick leave, vacation, etc. not donated leave payment
only).
a.
No expiration date required.
b.
Mandatory deductions are taken (state, federal, and
FICA taxes and retirement).
c.
Voluntary deductions (credit union, bonds, etc.)
continue.
d.
Automatic deposit remains in effect.
e.
Life insurance:
The State’s share of basic life and long-term disability premiums will
be paid automatically. The employee’s
share of life insurance will be deducted if there are enough regular
hours. If not, the employee must write
a check payable to the “Iowa State Treasurer” for the correct amount and forward
it to the personnel assistant.
f.
Health and dental insurance: The employee and state shares will only be
taken if the employee has enough regular hours. The employee must pay both the state and employee shares, unless
the leave has been designated as FMLA qualifying leave or he/she has regular
hours over 20 hours per week. Once the
FMLA leave is exhausted and/or the employee falls below 20 hours per week, the
employee must pay both the state and employee’s shares of the premium so the
health and dental codes should be “zeroed” out in the payroll system. If the employee has Wellmark or Delta Dental
the checks must be made payable to the “Iowa State Treasurer.” If the employee has SPOC or an HMO, the
checks must be made payable to the specific carrier. The employee’s checks need to be sent to the personnel assistant
to process.
g.
Premium Conversion Program (Pre-Tax) remains in
effect.
h.
Flexible Spending Accounts: Payroll deductions for the health and
dependent care flexible spending accounts will continue as long as the employee
receives sufficient pay from which to take the deduction. Employees who do not have sufficient pay to
make at least one deduction in a month will not be able to file claims for
services within that month.
i.
Deferred Compensation: Payroll deductions for the Retirement Investors’ Club (deferred
compensation) will continue as long as the employee receives sufficient pay
from which to take the deduction.
F.
Pay Information (P-9) 91-104 (4/94). To be completed by the recipient’s personnel
assistant for the recipient.
1.
employee’s name
2.
bargaining unit
3.
bargaining status
4.
payroll number (10 digits)
5.
class and position number (8 digits)
6.
social security number
7.
effective date
8.
number of regular hours worked (if any)
9.
sick leave hours used (if any)
10.
vacation hours used (if any)
11.
compensatory hours used (if any)
12.
donated leave pay (dollar amount)
13.
all other pay including unused sick leave must be
explained (box)
a.
identify names of donors and the number of donated
hours.
b.
add the total number of hours donated, then add the
number of regular hours worked (if any) to get the total.
c.
divide the recipients bi-weekly salary by 80 to
determine the hourly rate of pay.
d.
multiply the recipient’s hourly rate of pay by the
number of hours donated to determine the donated leave pay (dollar amount).
14.
must be approved (signed) by the employer or the
employer’s designee.
G.
Pay Information (P-9) 91-104 (4/94). To be completed by the donor’s personnel
assistant for the donor.
1.
employee’s name
2.
bargaining unit
3.
bargaining status
4.
payroll number (10 digits)
5.
class and position number (8 digits)
6.
social security number
7.
effective date
8.
all other pay including unused sick leave must be
explained (box)
9.
identify number of leave (vacation) hours donated.
10.
identify who is receiving the donated hours.
11.
determine donor’s vacation balance.
12.
determine number of donated hours to use.
13.
subtract number of donated hours from donor’s
current vacation balance (this number will go in the “correction of leave
balance – vacation” box).
14.
calculate number of donated hours remaining.
15.
detail box.
16.
Must be approved (signed) by the employer or the
employer’s designee.