Employee Benefits

Unpaid Leave of Absence

During an unpaid leave of absence you generally have two options regarding your benefit plans:

  1. Continue your coverage for the duration of your unpaid leave of absence by arranging for personal payments. The employer contributions towards any applicable premium will resume for the coverage month on or after your return to work; or

  2. Let the coverage lapse. You then have the option to reapply for your benefit plans within 30 days of returning to work. The employer contributions towards any applicable premium will resume for the coverage month on or after the payroll/benefits office receives your application. You cannot change the plans you are enrolled in unless an It's Your Choice enrollment period occurred while you were on leave of absence.

This summary includes plan information that indicates how far in advance the coverage is paid for each plan (see Insurance Deduction Schedule), as well as additional information that might help you determine which option you should choose.

For information on prepaying premiums, determining your eligibility, or for obtaining forms and instructions for continuing coverage, contact your staff benefits office.

You may use paid or unpaid leave of absence under Federal Family and Medical Leave (FMLA) or Wisconsin Family and Medical Leave (WFMLA). If your family and medical leave is unpaid, the information on this page applies to you. Please refer to Family and Medical Leave for eligibility and special provisions.

Please refer to Military Leave Benefits for special provisions regarding Military Leave. The provisions outlined on this page do not apply to a military leave of absence.

Upon return to work (i.e., active pay status) from leave of absence, WRS contributions immediately resume. You may reenroll in any benefit plan that you let lapse, at the level of coverage you had prior to the LOA, by applying within 30 days of return to work.

Maximum Leave of Absence: The maximum time allowable for a LOA is typically one year and is probably renewable, but you should verify this with your appointing authority. For more information:

  • Unclassified employees (faculty, academic staff, limited) should contact their academic personnel office.
  • Classified employees should refer to the Department of Employment Relations Administrative Code (ER § 18.14, Wis. Adm. Code).

Note: Most insurances can be continued for up to 36 months during an unpaid leave of absence. If you terminate employment or retire, you may have additional continuation or conversion rights. Refer to Life Events - Termination for additional information.

Wisconsin Retirement Service (WRS)

Your WRS contributions and service credits will end as of your last day worked and will resume immediately upon your return to work. After you return to work, you can make voluntary additional after-tax contributions to your WRS account.

State Group Health Insurance

Premiums are paid one month in advance (e.g., the premium deducted from September earnings is for October coverage), and the University pays its contribution for three additional months of leave of absence. After the first three months on LOA, you are responsible for the entire premium and may continue coverage for a total of 36 months while on leave of absence. If, however, you are on FMLA/WFMLA, the University contribution will continue during your entire FMLA/WFMLA leave. You must prepay any employee share of premiums.

If you choose to let the coverage lapse while on LOA:

  • you may reenroll within 30 days of your return to work; or
  • if you retire, you may reapply if you are receiving a monthly WRS annuity or lump sum payment; or
  • if you terminate employment before minimum retirement age, you may reapply if you have 20 years of creditable WRS service and you do not take a separation benefit.

Important: If you allow your family coverage to lapse while on LOA and you die, your surviving dependents will not have access to your sick leave credits to pay health insurance premiums.

Income Continuation Insurance (ICI)

ICI premiums are paid for the current month of coverage. For example, the premium deduction from September earnings is for September coverage.

  • University contributions will continue for three additional months after the month the LOA begins. You will need to prepay any employee share of the premium.You pay the full premium after the third month. You can continue coverage for a period of three years (36 months) while on leave of absence.
  • Your ICI coverage remains at the same level as that in effect immediately before your leave began.
  • No conversion coverage is available.

If you are on medical leave and are approved to receive ICI benefits, your ICI premium will be waived from the first of the month following the disability approval date until you return to employment.

State Group Life Insurance (SGL)

State Group Life Insurance premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue group coverage for up to 36 months during an unpaid leave of absence by prepaying the monthly premium. Coverage, including any applicable spouse/domestic partner/dependent coverage will continue at the same level in effect immediately before your leave began.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage level in effect prior to leave).
  • Permanent continuation or an individual conversion policy may be available if you terminate employment. Your staff benefits office can provide the correct application.

University Insurance Association (UIA) Group Life Insurance —Mandatory group term life insurance for faculty, academic staff, and limited appointees only.

  • Coverage automatically continues during an approved unpaid leave of absence. Coverage is a condition of employment and you are considered "employed" while on a leave of absence.
  • If you are not paid on the October payroll (payable November 1st), when the annual $24 premium is deducted, you will receive a bill for the entire annual premium.
  • If you first become eligible for coverage while on an unpaid leave of absence that occurs during the March unclassified payroll (payable on or about April 1st), you will receive a bill for half the total annual premium ($12) that will pay for coverage from April 1st - September 30th.
  • If you return to work and have not paid the premium, the premium owed will be deducted from your paycheck upon return to work. 
  • If you do not return to work following your leave of absence due to termination or retirement, you can continue coverage by submitting a continuation form and annual premium to Minnesota Life no later than November 29th following your coverage end date. Coverage can be continued indefinitely provided the premium is paid in a timely manner to Minnesota Life on an annual basis.

Individual and Family Group Life Insurance

Individual and Family Life Insurance premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue group coverage up to 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage level in effect prior to leave).
  • Conversion to an individual policy is available at termination. You must submit a conversion application to Minnesota Life no later than 31 days after your coverage end date.

UW Employees Inc. Group Life Insurance

UW Employees Inc. Life Insurance premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for up to 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (coverage level based on age as of January 1st of plan year).
  • Conversion to an individual policy is available at termination. You must submit a conversion application to Minnesota Life no later than 31 days after your coverage end date.

Accidental Death and Dismemberment Insurance (AD&D)

AD&D premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for up to 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may enroll in the plan at any time after you return to work. You may enroll in, cancel or change your coverage level at any time while actively at work.
  • Conversion to an individual policy is available upon termination of employment. See the conversion brochure for details. You must contact Zurich American Insurance Company at 1-800-834-1959 within 60 days of your coverage end date in order to convert your coverage to an individual policy.
  • Continuation coverage is available at retirement only.

EPIC Benefits+

EPIC Benefits+ premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for up to 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage in effect prior to leave).
  • If you terminate employment, you may continue coverage for 18 months through COBRA provisions.
  • If you retire or terminate employment with 20 years of WRS service, you may continue coverage indefinitely through direct payment to carrier.

Dental Wisconsin Dental Insurance

Dental Wisconsin premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for up to 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage in effect prior to leave).
  • If you terminate employment, you may continue coverage for 18 months through COBRA provisions.
  • If you retire, you may continue coverage indefinitely through direct payment to carrier.

Anthem DentalBlue Dental Insurance (this plan will no longer be available in 2013)

Anthem DentalBlue Dental Insurance premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage in effect prior to leave).
  • If you terminate employment, you may continue coverage for 18 months through COBRA provisions.
  • If you retire, you may continue coverage indefinitely through direct payment to carrier.

VSP Vision Insurance

VSP Vision Insurance premiums are paid one month in advance of coverage. For example, the premium deduction from September earnings is for October coverage.

  • You may continue coverage for 36 months while on an unpaid leave of absence by prepaying the monthly premium.
  • If you let coverage lapse, you may reenroll within 30 days of returning to work (reinstate coverage in effect prior to leave).
  • If you terminate employment, you may continue coverage for 18 months through COBRA provisions.
  • If you retire, you may continue coverage indefinitely through direct payment to carrier.

Employee Reimbursement Account (ERA)

Medical Reimbursement Account

  • You may continue coverage by contributing the remainder of your annual election via a tax-free contribution from your paycheck(s) prior to your unpaid leave of absence or by making after-tax contributions to your account. If you contribute your entire annual election, you may incur expenses throughout the entire plan year.
  • You may also terminate or reduce your annual election by filing a Change in Status Form. Under IRS regulations, you cannot change your election to an amount that is less than you've already contributed when the leave of absence begins. When you return to work, you may start an account or change your election amount again.
  • If you do not contribute your entire annual election or file a Change in Status Form, coverage will end at the end of the month in which your last ERA payroll deduction was taken. Expenses for services provided to you after this date are not reimbursable and any remaining funds will be forfeited.
  • If you did not continue coverage during your unpaid leave of absence, you many reenroll within 30 days of your return to work. Any expenses incurred during any period in which you did not continue coverage are not eligible for reimbursement.

Dependent Care Account

  • You may either elect to contribute the remainder of your annual election via a tax-free contribution from your paycheck(s) prior to your unpaid leave or you can let contributions end when you go on an unpaid leave.
  • You can continue to request reimbursement for eligible expenses until the account is exhausted or though the end of the plan year.
  • Once you return from leave, you may start an account or change your election amount.

For additional information, see the Department of Employee Trust Funds' ERA resources page.

Tax-Sheltered Annuity (TSA) and Deferred Compensation Accounts

Contributions end with your last paycheck. You may not withdraw your funds unless you terminate employment (or, for TSA accounts, reach 59 1/2), but a hardship withdrawal or loan may be available while you are on leave of absence. Check with your staff benefits office to see whether you must reenroll when you return to work.

Leave Benefits

  • You do not continue to accumulate vacation, sick leave, or personal holidays.
  • Sick leave balances are retained, except as used during the LOA.
  • Unused vacation may be carried into the following calendar year.
  • Unused personal holiday and floating legal holiday hours are lost at the end of the calendar year (classified employees) or end of the fiscal year (unclassified employees).

Seniority

You retain your original date of seniority/continuous service date during an approved leave of absence.

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This document was last revised on December 22, 2011

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