Academic Staff Handbook

Chapter 4

Initiating or Terminating Employment

EQUAL OPPORTUNITY/AFFIRMATIVE ACTION

The University, as an institution of higher education, recognizes its responsibility to encourage qualified individuals to participate as students and as employees in the institution's resources and opportunities. It is the stated policy of the University that appropriate qualifications for the performance of specific duties are the basic criteria for the employment and promotion of all University academic and civil service employees. Equal opportunity shall be provided in the hiring, retention, training, transfer, promotion, compensation, and upgrading of all employees, without discrimination on the basis of race, color, religion, sex, sexual orientation, national origin, ancestry, age, marital status, disability, unfavorable discharge from the military, or status as a disabled veteran or veteran of the Vietnam era, except as specifically exempted by law.

The University of Illinois at Urbana-Champaign reaffirms its continuing commitment to the following fundamental goals:

1. The analysis of current practices and policies and the adoption of new or revised ones, when necessary, to ensure equal opportunities in education and employment.

2. The identification and elimination of all employment practices unrelated to job performance and business necessity that have adverse impact on persons because of race, color, religion, sex, sexual orientation, national origin, ancestry, age, marital status, disability, unfavorable discharge from the military, or status as a disabled veteran or veteran of the Vietnam era, except as specifically exempted by law.

3. The wide recruitment and consideration of qualified minorities, women, disabled veterans, veterans of the Vietnam era, and disabled persons to ensure that candidates and employees with appropriate qualifications and potential are afforded equal opportunity for selection, training, promotion, and compensation.

4. The publication of this commitment and these policies and the enlistment of unit personnel in supporting and implementing them.

PREEMPLOYMENT INFORMATION

Recruitment Material

On a first-come, first-served basis, the Office of Academic Human Resources has various types of University and community information available for departments to use for recruiting purposes. These materials are for distribution to finalists for faculty and academic professional vacancies only. New members of the academic staff receive similar information at the annual Faculty/Academic Professional Orientation held every fall. Recruitment information may be obtained by calling 333-6747.

Job Registry and the Employment Center

The Academic Job Registry is a listing of faculty, academic professional, and other academic (e.g., lecturer, teaching associate) openings on the Urbana-Champaign campus. Compiled by the Office of Academic Human Resources, the job registry provides an easily accessible, comprehensive central source of information about faculty vacancies. Listings may be viewed through the Employment Center at www.uihr.uillinois.edu/panda-cf/employment/index.cfm. Complete descriptions of the positions may also be consulted during regular business hours at 807 South Wright Street, Suite 420.

Members of the households of potential and current University faculty and academic professional staff interested in general information about the University and/or area employment may contact the Office of Academic Human Resources (333-6747) for a copy of the Champaign-Urbana Community Employers Directory. In addition, members of the households of current University faculty and academic professional staff with academic credentials of University faculty calibre are eligible to apply for the Research Scholars Program. Consult www.research.uiuc.edu/rsp or call the Research Board (333-0037) for more information.

New Faculty/Academic Professional Staff Orientation

Each fall, a new Faculty/Academic Professional Orientation is held to acquaint new academic staff with various campus services, opportunities, and programs, and to provide them with useful information about the University and the Urbana-Champaign community.

The orientation is organized by the Office of Academic Human Resources. There are no registration charges or other fees. For further information, call 333-6747.

Moving Discounts

Moving discounts are available to University of Illinois employees and to University retirees and newly hired employees. Use of the moving discount requires a completed Moving Discount Authorization from the Office of Academic Human Resources. Call 333-6747 for additional information about the discounts.

Moving Expenses

Deans and directors of academic and administrative units may approve payment to a moving company through Purchasing or reimbursement of moving expenses for new or transferred members of the faculty or administrative staff and for certain classes of nonacademic employees. Reimbursement of moving expenses should not be authorized for visiting staff members unless there is a significant probability of permanent status. Reimbursement is limited to the preestablished maximums outlined in the Manual for Business and Finance. Payment is made only upon the submission of a properly supported and approved Miscellaneous Invoice Voucher.

Security-Sensitive Academic Positions

The Illinois Campus Security Act (Public Act 88-629) requires each public institution of higher education to identify security-sensitive positions and to make provision for the completion of criminal background investigations prior to employing individuals in those positions.

The University of Illinois at Urbana-Champaign defines security-sensitive academic positions as those which require employees to be entrusted with (1) the care of or daily close contact with pre-college-aged children or resident students at Beckwith Hall, (2) large amounts of cash or other items of significant value, (3) firearms, and (4) controlled substances or direct patient medical care. Units with positions encompassing these responsibilities will have to identify them as security-sensitive for new searches and conduct thorough background investigations on finalists. Thorough background investigations will include calls to references and past employers, criminal conviction checks, and, if appropriate, verification of credit history and professional licensing integrity. The criminal conviction history checks will be conducted by the Illinois State Police with the assistance of the Office of Academic Human Resources. Contact the Office of Academic Human Resources (333-6747) for assistance.

APPOINTMENT INFORMATION

Documents Required for Appointment

An academic staff member, upon accepting an appointment, must provide information required by the University, the state of Illinois, and the federal government, including an Employee Information Form; an Educational Loan Default Statement; an I-9, as required by the Immigration Reform and Control Act of 1987; a W-4; and three references. Additional forms may be required. (The Employee Information, loan default, and W-4 forms are completed electronically in NESSIE New Hire.)

Personnel Forms and Procedures

New employees cannot be put on the University payroll until several pay-related forms have been completed by the employee and processed by the Office of Academic Human Resources-Processing. The employing unit will establish a logon for each new employee so the necessary documents can be completed in the electronic NESSIE New Hire system.

Academic staff members receive instructions for obtaining a photo identification card. The card is required to use the library and for access to other services. Questions about these and other required forms should be referred to your unit.

TERMINATION OF EMPLOYMENT

Resignations

Resignations are submitted in writing to the supervisor, department head, or other appropriate administrative officer. A resignation does not become effective until officially accepted. The unit and the employee must also complete and sign a Resignation/Separation form indicating any balance of vacation and/or sick leave. There is no minimum notice of an intention to resign that an academic employee must give a unit, although employees are encouraged to give as much notice as possible to allow for a smooth transition.

Academic staff members employed at the University for the academic year who are resigning at the end of the service period can continue their benefits through the summer only if they request that their pay continue through August 15.

In accordance with state law, the health and life insurance coverage provided by the state and the benefits available to active employees under the State Universities Retirement System cease as of the resignation date. Under federal legislation (COBRA) enacted in 1986, a "continuation option" exists that permits continued medical and dental coverage after employment by making personal payment of the premium. For additional information, contact the Benefits Center (333-3111) prior to your termination date.

Method of Final Payment

The method of final payment for unused vacation time is subject to the approval of the unit head. Academic employees on twelve-month contracts who retire, resign, or otherwise terminate their employment with the University may be paid for accumulated vacation earned, but not taken, as of the date of termination up to a maximum of 48 working days. Or they may wish or be asked to take their vacations before the completion of their contracts. Supervisors are advised to provide reasonable notice when asking an employee to take vacation before the completion of the employee's contract. 

Academic employees who are transferring from one academic position to another within the University and are remaining on an academic contract with continuous service may not be paid out for accumulated vacation and sick leave unless they move from a position eligible for one or both of those paid leave benefits to one which is not eligible. State law requires repayment of any lump sum benefits paid to an employee who resigns if that employee is reemployed by the University within 30 days of the termination of his or her previous employment. As a condition of the employment, the employee must repay any lump sum within 30 days after the new employment commences.

Although employees on an academic-year or ten-month service basis do not earn vacation, they will be paid upon termination of services for the percentage of the service contract year completed. Thus, an academic-year employee at Urbana-Champaign may receive the entire balance due for his or her appointment year as of May 15 if they resign on that date. Academic year appointees have the privilege of receiving their salary during the year prior to retirement over a nine-month period (rather than over a twelve-month period) so that their retirement annuity can begin June 1. Academic staff members on a ten-month-paid-over-twelve-month appointment will have the same options available to academic-year appointees.

State Division of Employment Security

An employee who resigns or is terminated should receive a copy of the Illinois Department of Employment Security brochure entitled "What Every Worker Should Know about Unemployment Insurance." Copies are also available from the Office of Academic Human Resources (333-6747).

NONREAPPOINTMENT AND DISMISSAL

Notice of Nonreappointment for Nontenured Faculty Members and other Academic Ranks

There are two periods during the year when the decisions regarding notices of nonreappointment should be made by the departments and colleges: before February 1 and before May 20. Assistant professors in years two through six of the probationary period should be given notice by the department of a requested nonreappointment prior to May 20, to be effective at the completion of the following appointment year. Assistant professors in year one of the probationary period and full-time research faculty, research associates, and teaching associates paid from "hard funds" should be given notice of non-reappointment by the department prior to February 1, to be effective at the completion of the same appointment year. Although the department must notify the staff member of nonreappointment in writing, it is the Board of Trustees that gives the official notice. Research associates with appointments ending at a time other than August 20 must receive notice of nonreappointment from the Board of Trustees six months prior to the end of their appointments.

Research associates and teaching associates who are less than full-time do not require formal notice of nonreappointment by the Board of Trustees. Also, any research or teaching associate who is nonsalaried or whose contract specifies that the appointment is subject to availability of funds ("soft" funds) need not receive formal notice. Moreover, notice of nonreappointment is not required in the case of appointments at the rank of clinical assistant, research assistant, teaching assistant, lecturer, or instructor, nor for appointments that include in the title the terms adjunct, clinical, or visiting. However, good personnel practice requires that such appointees be given as much notice as possible when a decision regarding nonreappointment has been made. Although there is no statutory requirement, an associate or full professor in the final year of a "Q" appointment who is not given tenure is to be given a one-year notice of nonreappointment.

The initial recommendation that a notice of nonreappointment be issued to a faculty member in the probationary period is usually made at the departmental level, & involves the participation of the departmental executive officer & the departmental advisory or executive committee and/or a special committee elected or appointed to evaluate faculty progress as provided by departmental bylaws. When the decision is made to recommend issuing a notice of nonreappointment, the department head or chair must notify the faculty member in writing as soon as possible. This letter of notification must give reasons for the decision & must be accompanied by a copy of the Guidelines Regarding the Procedures for the Issuance & Review of Notices of Nonreappointment of Faculty Members during Their Probationary Period. The letter must also indicate the time allowed for the faculty member to make a written response if he/she wishes. The time allowed can be no less than 10 days. If the faculty member submits a written response within the allotted time, the case is reviewed by the departmental executive officer, in consultation with the departmental advisory or executive committee and/or a special faculty committee elected or appointed for this purpose. Further presentations in writing or in person may be requested at this point. The departmental executive officer will then either reaffirm the earlier recommendation to issue a notice of nonreappointment, or withdraw the earlier recommendation. ______________________________________________________________________________

When the departmental executive officer reaffirms the recommendation to issue a notice of nonreappointment or when the individual does not choose to respond to the letter of notification, the dean of the college or director of the school will review the materials and, if the departmental procedures are determined to be adequate, will transmit the request for nonreappointment to the provost or college dean. If the college dean or school director does not uphold departmental procedures, the department may be directed to conduct further reviews. The dean's or school director's decision on review is final. (Occasionally, recommendation of nonreappointment is made at the school, college, or campus level rather than at the departmental level. For the procedures to be used in such cases, consult the Guidelines.)

For further information about the faculty nonreappointment policy, consult Provost's Communication No. 10 (www.provost.uiuc.edu/communication/10/index.html) or contact the Office of Academic Human Resources (333-6747). Further information about academic staff in other academic ranks is described in Provost's Communication No. 11 (www.provost.uiuc.edu/communication/11/index.html).

Notice of Nonreappointment for Academic Professional Staff

Full-time, permanent academic professional employees (except for intercollegiate athletics coaches) are entitled to receive notice of nonreappointment as indicated in the following chart. The length of notice required is determined by two factors: the length of time the employee has served the University as a full-time, permanent academic professional and the type of funds from which the employee is paid. Contracts paid from "soft" funds specify that the appointment is subject to receipt of funds; contracts paid from "hard" funds have no such specification.

Computation of length of service for twelve-month, ten-month, & nine-month appointments will be on the basis of continuous full-time employment in academic professional positions carrying permanent titles, counting from the first date of employment in such positions to the date notice is given by the Board of Trustees. Periods of time during which the employee is on leave without pay (full or partial) will not count toward the total service credit in determining the minimum required notice. Any prior service credit should be clarified at the time the academic professional position begins. Any break in service of more than 30 calendar days through resignation, termination, etc., would require that the clock start again, but service in one full-time academic professional position eligible for notice will transfer to another full-time academic professional position, if no break in service is involved. A short break (30 days or less) will be handled like a leave without pay in terms of service credit for notice of nonreappointment.

Minimum Length of Notice of Nonreappointment Required by Source of Funds and Number of Years of Full-Time Service

Formal notice of nonreappointment by the Board of Trustees is not required for part-time academic professional employment or for positions that include in the title the terms visiting, acting, or interim.

All employees serving as coaches on annual contracts shall receive three months' notice of nonreappointment, if they have been employed four years or less; thereafter, they must receive six months' notice of nonreappointment. All employees serving as coaches serve at the pleasure of the athletic director and the chancellor.

Although the department must notify the academic professional staff member in writing of the intent not to reappoint, the Board of Trustees issues the official notice of nonreappointment to the employee. The required notice period is calculated from the date of notice by the Board of Trustees, not from the end of the current contract. If notice is given later than specified in an appointment year, it will be accompanied by an offer from the Board of Trustees of a terminal contract for an additional appointment that will extend the current appointment through the period of minimum notice. For example, academic professionals with pay dates of August 21 to August 20 should be given notice of nonreappointment by the Board of Trustees before February 21 for six months' notice, or before August 21 for twelve months' notice (i.e., six months or twelve months prior to the end of the appointment). If notice is not given by these dates, the employee will be offered a terminal contract for either six or twelve months, as appropriate, extending from the date of notice by the Board of Trustees. Following the initial notice of nonreappointment, the period of a terminal contract may be extended up to a total of two years. 

For further information about the academic professional nonreappointment policy, consult Provost's Communication No. 11 (www.provost.uiuc.edu/communication/11/index.html) or contact the Office of Academic Human Resources (333-6747). Units should allow three weeks between the date the terminal contract/notice of nonreappointment is submitted on the Electronic Change of Status to Academic Human Resources and the effective date of the notice of nonreappointment. Notice of nonreappointment cannot be used to truncate the current contract, which must be honored. A notice period longer than the minimum requirement is allowable.

Termination of Long-Term Academic Professionals. When a full-time, permanent academic professional employee with ten or more years of continuous full-time permanent academic professional service to the University may be released, the proposed termination is reviewed at several levels. This policy is intended to ensure careful thought to the issuance of a formal notice of nonreappointment to a long-term academic professional when the position that he or she occupies is to be terminated for economic or programmatic cause. The key feature of these procedures is advance consideration of the proposed termination of a long-term academic professional, in the hope and expectation that reviewing officers at the school, college, or campus level, having a broader perspective than the unit-level officer and being alerted to the situation at an early stage, would often be helpful in finding an alternative to the termination of a valued employee. For complete information, consult Provost's Communication No. 11 (www.provost.uiuc.edu/communication/11/index.html).

Relocation Plan. Academic professional employees who are being released from their current positions due to lack of funds or for programmatic reasonsif they have more than five years of continuous full-time, permanent service to the University on the Urbana-Champaign campusmay be interviewed upon request via the Office of Academic Human Resources for any academic vacancy at the University. The individual conducting the search is required to interview the employee and will be asked to give all possible consideration to the employee's application, although the University's policy of hiring the best-qualified candidate also applies. Academic professional employees with at least one year of permanent full-time service are not guaranteed an interview but are eligible for the Relocation Plan if the reason for nonreappointment is economic or programmatic. If eligible for the Relocation Plan an employee who wishes to participate must submit a resume to the Office of Academic Human Resources and request relocation assistance. For complete information, consult Section IX/C-26 of the Campus Administrative Manual (www.fs.uiuc.edu/cam) or call the Office of Academic Human Resources (333-6747).

Dismissal of a Faculty Member for Due Cause

Tenure may be terminated by honorable retirement, acceptance of resignation, or dismissal for due cause. Due cause for dismissal is deemed to exist only if (1) a faculty member has been grossly neglectful of or grossly inefficient in the performance of his or her University duties and functions; or (2) with all due regard for statutory freedoms and protections, a faculty member's performance of his or her University duties and functions or his or her extramural conduct is found to demonstrate clearly and convincingly that the individual can no longer be relied upon to perform his or her University duties and functions in a manner consonant with professional standards of competence and responsibility; or (3) a faculty member has, during his or her employment by the University, illegally advocated the overthrow of our constitutional form of government by force or violence.

When it appears to the president that cause for the dismissal of an appointee may exist, the president will consult with the Faculty Advisory Committee. If it is determined that dismissal proceedings should be instituted, the president or another person so delegated will prefer written charges with the clerk of the senate, who will see that the appointee receives a copy of the charges. The appointee may file with the clerk of the senate a request for a hearing before the Committee on Academic Freedom and Tenure and a detailed written answer to the statement of grounds for dismissal. At the appointed time and place, the Committee on Academic Freedom and Tenure will hold a closed hearing on the charges. If the committee recommends that charges be dropped and the president concurs, the case will be considered closed. If the case is not closed at this point, or if the appointee filed no request for a hearing before the Committee on Academic Freedom and Tenure, the president may cause the charges to be filed with the secretary of the Board of Trustees. The secretary will notify the appointee of the filing of charges, and the appointee may file with the secretary a written request for a hearing before the Board of Trustees. The appointee will have the right to appear at the hearing, with counsel if so desired, to reply to the charges and to present evidence on his or her behalf. If the Board of Trustees concludes that the appointee should be dismissed or asked to resign, the effective date of such dismissal or resignation will not be less than one year from the date of the board's decision, unless the board determines that an earlier effective date is justified by the gravity of the appointee's conduct in question.

RETIREMENT SYSTEM

State law requires all new employees of the University of Illinois to become participants in the State Universities Retirement System (SURS) immediately upon employment if they are employed at least 1 percent time and continuously for at least four months.

Effective July 1, 1998, employees have been able to choose from one of three retirement options. These options are (1) the Traditional Benefit Package, (2) the Portable Benefit Package, and (3) the Self-Managed Plan. New employees must make their election within six months of the date their employment begins. If the employee does not file a timely election with SURS, the default will be the Traditional Benefit Package. The employee's election, or default if no election is made, is irrevocable.

The Traditional Benefit Package is a Defined Benefit Plan. Pension assets are invested by investment managers hired and supervised by SURS. The highlights of the traditional plan are a fixed monthly retirement annuity and pre-paid survivor benefits. The refund to a terminated employee under the traditional plan is a return of the employee contributions plus interest not exceeding 4.5 percent compounded annually.

The Portable Benefit Package is also a Defined Benefit Plan. Pension assets are invested by investment managers hired and supervised by SURS. This plan provides a fixed monthly retirement annuity but benefits for survivors must be purchased. The survivor under this plan is only the surviving spouse. The refund to a terminated employee under the portable plan will be a return of the employee contributions plus all of the accumulated interest. If the employee has established five years of service credit the refund will include an equal match from employer contributions.

The Self-Managed Plan (SMP) is a Defined Contribution Plan. Each Self-Managed Plan participant is fully responsible for making all investment decisions, by selecting the fund or funds in which to invest their contributions. SURS is responsible for choosing the funds available to the employees. There are no guaranteed retirement or survivor benefits in the Self-Managed Plan. These benefits will be determined by the annuity the employee's account balance will purchase at date of retirement or death. The refund to a terminated employee under the SMP will be a return of the employee contributions plus all investment return on those contributions. If the employee has established five years of service credit the refund will include an equal match from employer contributions.

Contributions of 8 percent to SURS are deducted from the employee's earnings. (Employees of state universities and colleges are not eligible for federal Social Security coverage; therefore, no Social Security taxes are withheld from earnings. However, new employees hired on or after April 1, 1986 must pay the Medicare tax.)

The employee contributions are picked up by the employer and treated as employer contributions for income-tax withholding purposes. Retirement contributions are based on the gross earnings before the employer pickup and are included in earnings.

The law does exclude from SURS coverage those individuals whose employment is irregular, intermittent, or temporary. This affects staff (civil service) employees whose only employment is in an extra help or temporary appointment, academic employees whose only appointments are for zero-percent time or are expected to continue for less than four months, and all academic hourly employees. Due to federal legislation extending Social Security taxes to state and local government employees not participating in a retirement system, the University must make deductions for Social Security taxes from these employees' earnings. The federal legislation treats SURS annuitants as participants in a retirement system and excludes them from Social Security. The only exception to this rule is for non-U.S. citizens with a J-1 or F-1 visa employed on or after July 1, 1991. These employees may not participate in SURS, Social Security, or Medicare (unless a non-U.S. citizen with a J-1 visa has been designated as a resident alien for tax purposes). Registered students (i.e., graduate assistants, undergraduate students holding percentage appointments, and student employees) are also exempt from SURS, Social Security, and Medicare contributions.

The IRS regulations permit state and local government employees not covered by a qualified retirement system (SURS) to elect, as an alternative to Social Security, to contribute at least 7.5 percent of their earnings to a defined contribution retirement system offered by the employer via payroll deduction. For University employees, the individual retirement plans available include the State of Illinois' Deferred Compensation Plan and the various tax-sheltered annuities available under 403(b). Employees should contact the Benefits Center as soon as possible before their appointments begin if they wish to contribute to one of these plans rather than to Social Security. For more information refer to NESSIESURS.

Service Credit

Service credit is one of the most important factors in determining eligibility for retirement system benefits and the amount of such benefits. Employees receive service credit for all periods during which contributions are withheld from their earnings.

For the employee participating in the Traditional or Portable Benefit Packages, additional service credit may be established. Under certain circumstances, service may be received for military service, for other prior employment at half time or more for an employer covered by SURS, for full-time public employment in Illinois, for full-time public school employment in other states, and for employment with the United States Government. An employee who previously participated in SURS and accepted a lump sum refund may reinstate the previous service credit by repaying the refund, with accumulated interest, after they have returned to SURS participation for at least two years.

Leaves of Absence

Employees participating in the Traditional or Portable Benefit Packages, who are granted a leave of absence with pay at 50 percent time or greater, such as a sabbatical, are fully protected under the retirement system during the leave and earn full service credit. (Those who take a leave of absence at less than 50 percent pay must pay the employee contribution on the forfeited portion of the salary in order to get service credit for the time spent on leave. They must also return to employment at a certain percent time and for a certain length of time following the leave.) Employees on disability leave receive full protection during the first 60 days of such leave and during the period that disability benefits or workers' compensation benefits are paid, even though no employee contributions are made. Persons on military leave receive full credit for retirement purposes for up to five years of active duty without payment of contributions, if they return to employment with the University within one year of termination of military service; however, they are not considered as employees in determining eligibility for other benefits. Academic staff members are considered employed during the entire fiscal year, even if they do not receive compensation during the summer months, unless they decline their employment contract for the succeeding year or their employment status is otherwise terminated. Therefore, they are protected in case of disability or death occurring during the vacation periods, and service credit will be granted covering those periods.

However, employees who are granted a leave of absence without pay (other than military or disability) must contribute 8 percent of their full salary as of the date the leave begins in order to receive service and earnings credit for retirement purposes. (They continue to receive disability, death, and survivors' insurance protection during leave without pay even if they do not elect to pay the 8 percent employee contribution.) The payment may be in a lump sum or in monthly installments. The employee may defer leave of absence payment if they wish. However, deferred payments must be paid prior to retirement with interest. An Election to Make Contributions While on Leave of Absence at No Pay form, available from the retirement system office, must be filed within 60 days following the beginning date of the leave. If possible, it should be filed before the leave begins. If the employee fails to return to employment at the expiration of the leave, at the same percentage of employment they were prior to the leave, for a period of time equal to the leave or eight months, whichever is less, the contributions made for the leave period will be refunded without interest and service and earnings credit for the leave period will be removed from their account.

At present, the employees participating in the Self-Managed Plan cannot make contributions while on a leave of absence.

Death and Survivors' Benefits

When beginning participation in the retirement system, University employees are given a beneficiary designation form. This information should be kept current by notifying SURS of such events as the birth of a child or the death of a beneficiary. The law governing SURS provides that divorce of a spouse disqualifies the former spouse from receiving survivors' insurance benefits. A former spouse must be designated or redesignated as beneficiary after the date of the divorce to be eligible for any lump-sum death benefit that is not a survivors' insurance benefit. The beneficiary designation is for lump-sum death benefits and does not have any bearing on survivor benefits.

For Traditional Benefits Package Participant

Death Before Retirement. If an employee dies after establishing at least one-and-a-half years of service credit (or 10 years of service credit if death occurs after termination of employment but before retirement, provided the 10 years had been established at termination), the survivorsa spouse age 50 or over, of at least one continuous year, dependent parent, unmarried children under age 18 (or age 22 if a full-time student), or unmarried, disabled children over age 18 whose disability began prior to age 18may receive the following: (1) a death benefit equal to the employee's retirement contributions of 7 percent of earnings an percent of earnings and interest payable to a designated beneficiary; (2) a lump-sum survivors' insurance payment of $1,000; and (3) a monthly survivors' annuity of one-half of the employee's earned retirement annuity or, if greater, an amount that depends upon the number of eligible survivors and the employee's average earnings during the high four consecutive fiscal years, or during the entire period of service if the employee has less than four years of service. Monthly survivors' benefits begin when the surviving spouse reaches age 50 or a surviving parent reaches age 55. However, if children under age 18 (or age 22 if a full-time student) qualify, the payments are also made to the surviving spouse (if the child lives with the surviving spouse) from the date of death until the youngest unmarried child attains age 18 (or 22 if a full-time student).

The following amounts are paid if the survivors waive the survivors' insurance benefits or do not qualify for such benefits: (1) a refund of the employee's total retirement deductions and interest plusif the employee dies in service(2) a lump sum of $2,500 to a nondependent beneficiary or an amount equal to the employee's average annual earnings to a dependent beneficiary (not to exceed $5,000).

Death After Retirement. An eligible survivor of a deceased retiree is entitled to a lump-sum survivors' insurance benefit of $1,000 plus the monthly survivors' annuity referred to above. If the survivor does not qualify for the lump-sum and monthly survivors' insurance benefits or waives the right to receive such benefits, the beneficiary named by the employee will receive a death benefit equal to the employee's normal retirement contributions and interest at retirement, less the sum of the retirement annuity payments, or $1,000, whichever is greater.

For Portable Benefits Package Participant

Death Before Retirement. The beneficiary under the Portable package is the spouse, unless the spouse had given written consent for the member to name an alternate beneficiary. If the employee dies before establishing five years of service credit, the benefit is a return of the employee's total contributions and interest.

If the employee's death occurs after establishing five years of service credit, the spouse, of at least one continuous year, would receive a 50 percent Joint and Survivor Annuity, called a Pre-Retirement Survivor Annuity (PSA), that would begin at the employee's death or earliest retirement age, whichever is later, and a lump sum equal to the total employee contributions and interest plus an equal amount of employer contributions less the actuarial value of the survivor annuity. If the spouse waives the PSA, the death benefit will be a lump sum equal to the total employee contributions and interest plus an equal amount of employer contributions.

Death After Retirement. Survivor benefits are payable to the eligible survivor of a deceased retiree only if the retiree purchased a Joint and Survivor Annuity at the time of their retirement. The retiree had the option to purchase a 50 percent, 75 percent, or 100 percent Joint and Survivor Annuity. If there are no survivor benefits payable, a lump sum death benefit will be paid. The death benefit is a return of the remaining employee contributions and interest or $1,000, whichever is greater.

For Self-Managed Plan Participant

Death Before Retirement. The beneficiary under the Self-Managed Plan is the spouse, unless the spouse had given written consent for the member to name an alternate beneficiary. If the employee dies before establishing one-and-a-half years of service credit, the benefit is a return of the employee's total contributions and interest.

If the employee's death occurs after establishing one-and-a-half years of service credit, the spouse would receive a lump sum equal to the total employee contributions and interest plus an equal amount of employer contributions or the spouse would elect to use the lump sum to purchase an annuity contract. If there is no spouse, the death benefit will be a lump sum equal to the total employee contributions and interest plus an equal amount of employer contributions.

Death After Retirement. Benefits to the deceased retiree's survivors will be determined by the annuity contract purchased at the time of their retirement.

Survivors' Checklist

Spouses and beneficiaries of deceased University employees need to make the following contacts in order to obtain various benefits:

1. State Universities Retirement System (217-378-8800). Assistance is provided in filing claims for survivors' benefits and/or death benefits. The following documents are necessary: birth certificates for surviving spouse and dependent children under age 18, marriage certificate, death certificate, and Social Security numbers for surviving spouse and dependent children.

2. Benefits Center (333-3111). Assistance is provided in filing claims for life insurance benefits and in continuing health insurance for dependents. A certified copy of the death certificate is necessary for each policy.

3. Office of Academic Human Resources (244-2400). Assistance is provided for release of the last salary check & for payment of accumulated vacation & compensable unused sick leave, after a thirty-day waiting period. The following documents are necessary: certified copies of the death certificate & the authority under which the estate is to be settled (e.g., certified copy of Letters of Administration if there is a will and it is being probated, or certification under the Small Claims Act if there is not a will or the will is not being probated). If no monies are due, this contact is unnecessary. 

4. Credit Union (278-7700). Assistance is provided for release of accounts and counsel on loans and benefits due the survivor. The following documents are necessary: a certified copy of the death certificate, Attorney General Consent, and a certified copy of Letters of Administration or Small Claims Affidavit. If the deceased University employee was not a member of the Credit Union, this contact is unnecessary.

Retirement Dates

Academic staff members on twelve-month contracts may be given an additional ten-day appointment through August 31 at the same rate of pay from the previous year and the retirement date may be set for August 31. The August 31 retirement date is not an available option to academic staff members on academic-year or ten/twelve-month contracts. Academic staff members on academic-year or ten/twelve-month contracts must retire no later than August 20.

Also, an academic staff member on an academic-year contract may request to retire on May 20, which is the end of the academic-year service period, and receive all pay on May 20. This option is not available if the staff member is to have a summer appointment. A staff member having a summer appointment may retire upon the completion of the summer appointment or on August 20, and at the next regular pay date receive final pay for the previous academic year as well as for the summer appointment. Academic staff members on a ten/twelve-month contract may also retire at the end of their designated service period.

Retirement Benefits

An employee's retirement annuity generally is based on years of service and average earnings during the high four consecutive academic years including summer session earnings, overtime pay, and up to 56 workdays of accrued vacation earnings, which are paid at retirement. A money-purchase formula for calculating retirement benefits will be used, if it results in a greater retirement annuity than that provided by the general formula. Ordinarily, the money-purchase formula provides a greater retirement annuity than the general formula, if the employee leaves Illinois service at an early age with a relatively short period of service. On the other hand, the formula based on years of service and average earnings normally provides a greater retirement annuity in the case of a relatively long period of service at retirement.

At least one year before retirement, an employee should check with the retirement system to be certain that he or she has established credit for all possible service. If an employee has additional service credit to establish, it is necessary to make all payments before retirement in order to receive credit for previous service, thus increasing the retirement annuity. Someone who is planning to retire should also request a retirement application form from the retirement system office at least 60 days prior to retirement.

Generally, the first monthly retirement annuity check is an estimated payment payable on the first day of the month following the date of retirement. Preliminary estimated payments will be paid until the retirement claim is finalized, which is typically 60 to 90 days. Payments are not made for fractions of a month; consequently, it is financially advantageous to terminate employment at or near the end of a month. 

For Employees in the Self-Managed Plan

The retirement annuity under the Self-Managed Plan will be determined by the employee's account balance and the details of the annuity contract purchased.

Applying for Retirement Benefits

Employees in the Traditional package should request an Application for Retirement at least 60 days prior to retirement. Employees in the Portable package or Self-Managed plan should request the application at least 120 days prior to retirement.

The retirement system office assists employees who wish to estimate their retirement annuity and provides further information on the retirement program upon request. Contact the State Universities Retirement System, 1901 Fox Drive, Champaign (378-8800).

Emeritus Status

When members of the faculty retire from active University service, they may be given the title "Emeritus" or "Emerita." Emeritus status is granted upon the recommendation of the department, with the concurrence of the dean of the college, the chancellor, and the president. On the U of I campus, the provost serves as the chancellor's designee. Emeritus status may also be granted to presidents, chancellors, and deans either at retirement or prior to retirement for those who have served in the positions for at least five years and resign to return to the faculty. No minimum period of time is required for faculty to have been employed by the University before they are eligible for emeritus status. Emeritus status does not imply any significant privileges apart from those granted to all retired members of the academic staff. See Provost's Communication No. 12 (www.provost.uiuc.edu/communication/12/index.html).

Privileges of Retired Academic Staff Members

Retired academic staff members of the University may be provided with research assistance with the concurrence of the unit head, but never for longer than one year at a time. Staff members who receive such assistance must report to the chancellor at the end of each academic year on the work accomplished during that year. Assistance may be continued only if the annual report shows progress or promise. In addition, retired faculty members who had offered graduate courses before their retirement may offer conferences with graduate students, upon the approval of their department head or chair, the dean of the Graduate College, and the chancellor. Retired faculty members may also participate in meetings of their college or school faculties, but have no vote.

Reemployment of Retired Academic Staff Members

If it is determined that the needs of the University can be met by reemploying a retired academic staff member, the retiree may be reemployed after a minimum break in employment of 60 days. (If the reemployed retiree returns to work before a sixty-day lapse in employment, his or her retirement annuity will be canceled, regardless of whether the employment is full-time or part-time, and all annuity payments that may have been made must be refunded to the retirement system.) 

A reemployed retiree's monthly or annual salary payments are to be limited to that amount which SURS stipulates. It should be noted that the SURS salary limitation for annuitants who retired before age 60 limits monthly earnings while the limitation for annuitants who retire at or after age 60 limits annual earnings. Consult the Campus Administrative Manual (Section IX/F-1) (www.fs.uiuc.edu/cam) on refer questions concerning this policy to the Office of Academic Human Resources (333-6747).

A reemployed retiree who expects to continue working at the University for a period of at least nine months may file an election with SURS to forgo all annuity payments during the period of reemployment and resume status as a participating employee. Upon subsequent retirement, the previous retirement annuity will be reinstated and the reemployed retiree will be entitled to an additional annuity based upon service completed after the date of initial retirement. Before accepting reemployment with the University, a retiree should be familiar with the State Universities Retirement System's post-retirement earnings restrictions, explained at length in materials available upon request from SURS (378-8800).