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, or
  2. Let the coverage lapse. You then have the option to reapply for your benefit plans within 30 days of returning to work.

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. University Insurance Association (UIA) reenrollment is automatic for unclassified employees.

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:

  • Faculty and academic staff should contact their academic personnel office.
  • Represented classified employees should refer to their Collective Bargaining Agreement.
  • Non-represented 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 of leave of absence. If you terminate employment or retire you may have further continuation or conversion rights. Refer to Life Events - Termination for 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 two calendar months in advance (e.g., the premium deducted from September earnings is for November 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 service and do not take a WRS 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 eligible for ICI, premiums will be waived from the first of the month following the disability approval date until you return to employment.

State Group Life Insurance (SGL)

  • Premiums are paid two months in advance.
  • You may continue group coverage for up to 36 months of leave of absence by prepaying the monthly premiums. Coverage, including any applicable Spouse and Dependent coverage, will continue at the level in effect immediately before your leave began.
  • 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 continues during an authorized 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 unclassified payroll (payable on or about November 1st) when the annual $24 premium is deducted, you will receive a bill for the entire annual premium.  You must pay the premium to the “University of Wisconsin” no later than November 29th following the policy paid-through date.
  • If you first become eligible for coverage while on an unpaid leave of absence and you are on an unpaid leave of absence during the March unclassified payroll (payable on or about April 1st), you will receive a bill for half the total premium ($12) that will pay for coverage from April 1st – September 30th.  You must pay the premium to the “University of Wisconsin.”
  • If you return to work and have not paid the premium, the amount of premium owed will be taken from your payroll upon return to work.
  • As an insured member, if you do not return to work following your leave because of subsequent retirement or termination, you have the right to continue participation in the group plan by submitting a Continuation Form and $26 premium to Minnesota Life Insurance Company no later than 60 days from the policy paid through date (November 29.)

Individual and Family Group Life Insurance

  • Premiums are paid one month in advance.
  • You may continue group coverage up to 36 months while on leave of absence by prepaying the monthly premiums to the UW System.
  • Conversion to an individual policy is available upon termination of employment. Contact Minnesota Life Insurance Company not later than 31 days after prepayment coverage ends.

UW Employee’s Inc., Group Life Insurance

  • Premiums are paid one month in advance.
  • You may continue coverage for up to 36 months while on leave of absence by prepaying the monthly premiums to the UW System.
  • Conversion to an individual policy is available upon termination of employment if application is made and premium paid within 31 days of coverage ending. Contact Country Life Ins. Company (800) 345-2436 for conversion information.

Accidental Death and Dismemberment Insurance (AD&D)

  • Premiums are paid one month in advance.
  • You may continue coverage for up to 36 months while on leave of absence by prepaying the monthly premiums to the UW System.
  • Conversion to an individual policy is available upon termination of employment. Contact Hausmann Insurance (608) 257-3795 not later than 31 days after prepayment coverage ends.

Epic Dental and Excess Major Medical

  • Premiums are paid one month in advance.
  • You may continue coverage for up to 36 months while on leave of absence by prepaying the monthly premiums to the UW System.
  • Permanent continuation is available if you retire or terminate employment with 20 years of service. Otherwise 36 months of continuation is available.

Anthem DentalBlue Dental Insurance — For classified employees, faculty, academic staff, and limited appointees.

  • Premiums are paid one month in advance.
  • You may continue coverage for 18 months of leave of absence by pre-paying the monthly premium to the UW System (in some cases, coverage may be continued for 36 months).
  • No conversion coverage is available.

OptumHealth Vision Insurance -- (previously Spectera)

  • Premiums are paid one calendar month in advance.
  • You may continue coverage for 18 months of leave of absence by pre-paying the monthly premium to the UW System or you may discontinue premium payments and let coverage lapse. You may re-enroll within 30 days of return to work. You may also choose to let coverage lapse and elect continuation coverage to ensure that coverage remains in effect while you are on LOA.
  • You must remain covered for the entire calendar year, unless employment ends or you are on LOA. To cancel coverage, you must provide a written notice to the staff benefits office prior to or on December 1st for a December 31 effective date.

Employee Reimbursement Account (ERA)

Medical Account:
You may continue coverage for some or all of the current plan year by pre-paying contributions if you have not satisfied the annual amount you elected to contribute.

You may also 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.

To continue participation you can:

  • Arrange to have multiple deductions taken from your last payroll check on a pre-tax basis. See your staff benefits office; or
  • Make after-tax payments directly to your staff benefits office; or
  • Complete a Change in Status Form form changing your plan year amount to the year-to-date amount you have already had deducted from your earnings.

Important: If you do not continue participation, costs incurred after the end of the month in which the last ERA deduction was taken will not be reimbursed.

Dependent Care Account:

  • Your contributions end when you go on LOA.
  • You can continue to request reimbursement for eligible expenses during the plan year until the account is exhausted.

For information on Employee Reimbursement Accounts (ERA), contact the local representative for Fringe Benefits Management Company at (608) 829-0435 or Fringe Benefits Management at (800) 872-0345.

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.
  • Your institution may allow you to carry vacation leave to the following year.
  • Personal holidays not used are lost at the end of the year.

Seniority

You retain your original date of seniority during a leave of absence.

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This document was last revised on January 27, 2010

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