Benefit eligible to variable hour status
BE to PT
When a regular full-time benefit eligible employee separates from employment (resigns, retires, layoff, etc.) and then is rehired into a variable hour position (part-time temporary or part-time faculty) within six months of the separation, they will be considered variable hour employees and ACA VAR Eligible because they have met the full-time definition under the ACA rule by working 30 hours or more per week for the duration of their completed prior standard or initial measurement period. The same is true for transfers from benefit eligible positions to variable hour positions without a separation (for instance, faculty appointment ends, but part-time faculty summer role continues). The employee may be in their SMP or IMP and the same procedure applies.
Exceptions and exclusions
However, this does not apply to part-time benefit eligible employees who have worked less than 30 hours per week during their completed measurement periods; therefore, they did not meet the full-time definition under the ACA rule. The “Off Contract” employees who are maintaining their position active are excluded as well and they can work at a part-time capacity during the summer and return to their benefit eligible positions in the next academic year (Fall Semester). If you have any questions, please contact HR for assistance.
ASRS implications
If the employee terminates their benefit eligible position and they were contributing to ASRS during the fiscal year, then they must continue to contribute to ASRS along with the department in the new part-time temporary position up through the end of the current fiscal year. The ASRS week count will reset on July 1 for the part-time temporary employee.
There are other requirements for employees who retire and their contributions may be different, so please contact the Benefits team at HR for assistance.
ACA implications
The employee will immediately be considered ACA VAR Eligible upon returning to work in their new part-time temporary position based on the effective date reflected in PeopleSoft, not necessarily their start of service. They will immediately be in their stability period from the start date of their part-time job through December 31st of the same year. As a reminder, this does not mean that the employee can work at a full-time capacity simply because they are now a variable hour employee. They must still maintain their variable hour employee status.
Typically, if the intent for the position is that the variable hour employee must work 30 hours or more for 90 days, the Arizona Department of Administration benefit eligible rule requires that the position be a benefit eligible position and that the person hired into the position be offered benefits from start of their employment. Please contact HR Employment Compensation Analyst for assistance.
For example:
Daisy was a regular full-time employee during the completed SMP (10/13/2014 – 10/11/2015) and she maintained her full-time status up through 02/29/2016 and she terminated, then she was rehired into a part-time temporary position on 03/01/2016, which is less than 6 months, so she will be offered medical benefits on 03/01/2016 through 12/31/2016.
