Leave Without Pay Guidelines

Prior to going on leave without pay, the campus benefits representative should discuss intended plan participation with the employee. The employee must be notified in writing of the ability to participate within fourteen (14) days of losing eligibility.

The employee has the option to either continue participation with after-tax contributions or cease participation during leave status. There must be funds remaining in the account in order to continue participation in the Plan during leave without pay.

1. If an employee chooses to continue participation while on leave without pay, the employee must submit a completed Request for Direct Pay Enrollment form to the benefits representative within sixty (60) days from the later of date of notification of the qualifying event, or the loss of coverage. The benefits representative is responsible for forwarding the form to the CA as notification of the employee's intent to continue participation. A copy of the form is filed at the campus.

• As a result of the leave, if the employee chooses to adjust the contribution under a “Change of Status Event,” the employee may increase the deduction up to a maximum of $416.66 per month (minimum $20 per month).
  
  
• Upon receipt of the form, the CA mails a payment coupon book to the employee. While on leave, contributions are made directly to the CA by the employee with after-tax money.
  
  
• The employee must submit the contribution on or before the time specified by the CA, along with the corresponding coupon. The first payment must be made to the CA within forty-five (45) days from the date of election. The first payment must include sufficient funds so that the account will be current. Payments must be paid to the order of the CSU Board of Trustees, and are made on a monthly basis unless the employee chooses to pay in advance.
  
  
• Making payments directly to the CA allows the employee to submit claims for expenses incurred during this time period.
  
  
• If the employee fails to pay the CA during the leave period, the employee ceases to be a participant in the Plan. The employee is no longer eligible to submit claims for expenses incurred during the time the contributions were not made to the CA.
  
  
• Upon return from leave, the employee's deductions automatically resume regardless of whether the employee actively made contributions to the CA while on leave without pay.
  
  
• The benefits representative is not required to make any adjustment to the resumed deduction.
  
  
• Upon return, if an employee chooses to adjust the resumed deduction under a “Change in Status Event,” the employee may adjust the deduction up to a maximum of $416.66 per month (minimum $20 per month).

2. If an employee chooses not to continue coverage after being notified of the qualifying event, no further action is required by the campus benefits representative.

• An employee on leave without pay who chooses not to continue contribution payments while on leave, may not submit claims for expenses incurred while on leave. It is the responsibility of the CA to monitor expense claims made by the employee.
  
  
• Deductions via regular payroll will automatically resume when employee returns to payroll status.

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