Human Resources

Employee Benefits (Interim)

Policy Owner: Vice President and Chief Human Resources Officer
Responsible Office: Human Resources
Origination Date: October 2, 2026
Last Revised: n/a

Definitions

Arizona Board of Regents: The governing board for the state’s public universities.

Employment Categories

Regular Position: A position expected to work consistently at least 50% of a full-time position for six months or more and is subject to the Arizona Board of Regents (ABOR) terms and conditions as indicated below. An employee working in a regular position is referred to as a regular employee.

  • Faculty (FAC): A regular position subject to ABOR policy 6-201.
  • Appointed Staff (APP):
  • Classified Staff (CLS): A regular position subject to general ABOR personnel policies as specified, except for those subject to any other conditions of service (e.g., academic professionals, service professionals, etc.).
  • Postdoctoral Scholar (POD): A regular position subject to ABOR policy 6-310.
  • University Staff (UNS): A regular position as defined by ABOR policy 6-510.

Variable Position: A position that has an inconsistent work schedule and/or is of a short duration (e.g., a position lasting less than six months or a part-time faculty position where the schedule varies by term). The following are variable positions and employees in these positions may be eligible for limited benefits if eligibility rules are met:

  • Temporary Position (TMP) 
  • Student Position (STU) 
  • Part time Faculty (PTF)
  • Graduate Assistant (GRD) 
Retirement Plans

Arizona State Retirement System (ASRS): The ASRS is a state agency that administers a defined benefit pension plan, a long-term disability plan, retiree health insurance plans, and other benefits to qualified members. Visit the ASRS website and NAU’s Primary Retirement Plan webpage for details on the benefits offered to NAU employees.

Defined Benefit Retirement Plan: A retirement plan that provides a fixed, pre-established benefit for employees at retirement, calculated through a formula of salary and length of service.

Defined Contribution Retirement Plan: A retirement plan that does not guarantee a specific benefit at retirement. The employee has an individual account and receives the balance of this account upon retirement. Account balances are based on contributions and investment earnings.

Optional Retirement Plan (ORP): A Defined Contribution Plan administered by the Arizona Board of Regents. Visit the NAU’s Primary Retirement Plan webpage for details on the benefits offered to eligible NAU employees.

Public Safety Personnel Retirement System (PSPRS): The PSPRS is an organization that administers retirement benefits and programs to qualified members. Visit the PSPRS website and NAU’s Primary Retirement Plan webpage for details on the benefits offered to NAU’s public safety employees.

State Sponsored Retirement Plan: Retirement plans that are sponsored by the State of Arizona or the Arizona University System.

  • Arizona State Retirement System (ASRS)
  • Optional Retirement Plan (ORP)
  • Public Safety Personnel Retirement System (PSPRS)

Policy

This policy provides basic information about eligibility, continuation, and taxation of the benefits offered to Northern Arizona University (NAU) employees. It is not intended to be an all-inclusive policy. Specific plan information can be found on the Human Resources website on the Plan Documents and Policies webpage.

Section I: Benefit Eligibility

Eligibility for benefits is determined by the benefit plan’s rules and the employee’s employment category defined above. For eligibility by benefit plan refer to Appendix A – Benefit Eligibility by Benefit Plan and Employment Category.

Section II: Taxation

Employees pay a portion of the cost for most benefits except for basic life insurance. Premiums are deducted on either a pre-tax or after-tax basis.

A.  The Arizona Board of Regents adopted the Pre-tax Benefit Plan on January 1, 1988, allowing an employee to pay for certain eligible benefits on a pre-tax basis. Allowing pre-tax payment for benefits reduces the employee’s annual taxable salary, producing the net effect of lowering the taxes paid by the employee and increasing the employee’s take home pay.

  1. Under the provisions of tax law, the benefits paid for on a pre-tax basis must stay in effect for the entire plan year, unless there is a qualifying event. If a qualifying event occurs (e.g. birth, marriage, divorce, adoption, etc.), the employee must contact Human Resources to make a pre-tax benefit change within 31 days of the qualifying event.
  2. The annual open enrollment period is the one time each year when changes to pre-tax benefit plans can be made without a qualifying event. The Arizona Department of Administration establishes the dates for the open enrollment period.

B.  Certain employee elected benefits are paid through payroll deductions on an after-tax basis. This means the premiums associated with the specific benefits are taken from the gross income after taxes have been calculated on the paycheck.

  1. Post-tax benefits, such as short-term disability can be stopped at any time throughout the calendar year. 

Section III: Benefits Offered

Northern Arizona University offers employees a variety of benefits. These benefit plans are subject to change without prior notice, as determined by changes in federal or state laws or regulations, policies of the Arizona Board of Regents, Arizona Department of Administration rules, determinations by Northern Arizona University or plan changes implemented by benefit providers.

A.  The University is legally required to provide certain benefits to employees. These benefits begin on the first day of employment and will remain in effect during eligible employment.

  1. Social Security & Medicare: All employees are required to have a valid Social Security number and contribute to Social Security including OASDI – Old Age and Survivor’s Disability and Health Insurance and Medicare Hospital Insurance.
    • NAU and the employee contribute equally. Contributions are deducted from each paycheck at a rate defined by Congress. The contribution rate and the taxable wage base change periodically as specified by federal statutes.
  2. Unemployment Insurance: Eligible employees who, through no fault of their own, are terminated from University employment may be eligible for unemployment compensation benefits.
    • NAU pays the premium for this benefit.
    • Employees must apply for this benefit with the applicable agency from the employee’s state of residence.
    • Eligibility and benefit amounts are determined by the applicable agency from the employee’s state of residency.
  3. Workers Compensation: All employees, including student employees, are covered from their initial date of employment by workers’ compensation provided through ADOA Risk Management.
    • This is a no-fault system of benefits.
    • Benefits are payable for most injuries that occur while the employee is performing on the job duties at work.
    • Financial compensation is limited to partial wages and approved medical costs
    • NAU pays the premium for this insurance.

B.  Eligible employees can enroll in voluntary benefit plans when hired into a Regular Position. The election must be made within 31 days of their eligibility date. Coverage is effective on the first day of the pay period following when the employee submits their election. Visit NAU’s Benefits website and review the Plan Documents and Policies webpage for details on each of these plans.

  1. Medical insurance: Employees and their eligible dependents can enroll in medical coverage which provides a combination of hospital, surgical, major medical, and prescription benefits. Plans may vary in their provider networks, coverage, limitations, employee premiums, and out-of-pocket costs, including deductibles and copays.
    • Participation is optional.
    • NAU and the employee share the premium cost.
    • Employee deductions are on a pre-tax basis.
  2. Dental insurance: Employees and their eligible dependents can enroll in dental coverage which provides coverage for preventive exams along with basic and major dental services. Plans may vary in their provider networks, coverage, limitations, employee premiums, and out-of-pocket costs, such as deductibles and copays.
    • Participation is optional.
    • NAU and the employee share the premium cost.
    • Employee deductions are on a pre-tax basis.
  3. Vision insurance: Employees and their eligible dependents can enroll in vision coverage which provides benefits for exams, lenses, frames, or contacts.
    • Participation is optional.
    • Employees pay the full premium cost.
    • Employee deductions are on a pre-tax basis.
  4. Health Savings Account (HSA): Employees enrolled in a High Deductible Health Plan are eligible for a Health Savings Account. Funds are used for eligible health care expenses. NAU contributes to the account to assist employees in paying for eligible health care expenses. Employees may also make pre-tax contributions to the account. The funds in the account are the employees to take with them when they leave NAU.
  5. Health and Dependent Care Flexible Spending Accounts (FSA): Employees can contribute to an account with tax-free dollars to pay for eligible health care or dependent care expenses. Unused funds are forfeited.
    • Participation is optional.
    • NAU does not contribute to the accounts.
  6. Basic Life Insurance: NAU provides employees with $15,000 of term life insurance. NAU pays the full premium cost.
  7. Supplemental Life Insurance: Employees may purchase additional life insurance for themselves.
    • Participation is optional.
    • Employees pay the full premium cost.
    • The first $35,000 of employee supplemental life coverage is paid on a pre-tax basis and any coverage beyond that is taxable.
  8. Short-term disability insurance: Employees can enroll in short-term disability which provides income protection during the first six months of a disability resulting from illness or an off-the-job accident. The waiting periods vary by plan and qualifying event.
    • Participation is optional.
    • Employees pay the full premium cost.
    • Employee deductions are on an after-tax basis.
    • Benefits paid to the employee are not taxed.

C.  Eligible employees must enroll in a primary retirement plan that includes long-term disability coverage. The plan(s) offered is based on the employee type. Visit NAU’s Benefits website and review the Plan Documents and Policies webpage for details on each of these plans.

  1. Classified staff and non-administrative/non-professional University Staff employees are enrolled in the Arizona Retirement System (ASRS).
    • NAU and the employee contribute the same amount to the plan.
    • Employees make pre-tax contributions.
  2. Faculty, Appointed Staff, and administrative/professional University Staff employees may choose between ASRS or the Optional Retirement Plan (ORP).
    • Employees must select a plan within 30 days of their eligibility date. If the employee does not make an election, they will be defaulted into ASRS.
    • An employee’s election or default cannot be changed.
    • NAU and the employee contribute the same amount to the plan.
    • Employees make pre-tax contributions.
  3. Public Safety employees must enroll in the Public Safety Personnel Retirement System (PSPRS).
    • Employees must enroll in the PSPRS Defined Benefit Plan or the PSPRS Defined Contribution Plan within 90 days of eligibility. If the employee does not make an election, they will default to the PSPRS Defined Benefit option.
    • An employee’s election or default cannot be changed.
    • NAU and the employee contribute to the plan.
    • Employees make pre-tax contributions.

D.  All NAU employees can increase their savings for retirement by contributing to supplemental retirement plans. Employees can participate in either or both of the following supplemental retirement plans.

  1. Employees may contribute to the State of Arizona Deferred Compensation plan which is a supplemental retirement program that falls under the laws for section 457 in the IRS codes.
    • Participation is optional.
    • Employees can enroll or make changes at any time.
    • NAU does not contribute to the plan.
    • Employees can elect to contribute to their account on a pre-tax or after-tax/Roth basis.
  2. Employees may contribute to the Arizona University System Voluntary 403(b) which is a supplemental retirement program that falls under the laws of section 403(b) in the IRS codes.
    • Participation is optional.
    • Employees can enroll or make changes at any time.
    • NAU does not contribute to the plan.
    • Employees can elect to contribute to their account on a pre-tax or after-tax/Roth basis.

E.  Eligible employees can receive reduced tuition for themselves, their spouse, and eligible dependents at any of the Arizona University System’s three universities: University of Arizona, Arizona State University and Northern Arizona University. Visit NAU’s Employee Tuition Reduction Program webpage for more information.

F.  Employee Assistance and Wellness Office offers a wide variety of services to eligible employees and their immediate family members covered under any NAU medical plan. Visit NAU’s Employee Assistance and Wellness website for more information.

Section IV: Dual Enrollment of Benefits

The Arizona Department of Administration (ADOA) prohibits duplicate/dual enrollment in any State of Arizona Benefit Plan for employees or retirees. There are no refunds for duplicate premiums paid.

A.  Employees\Retirees cannot be enrolled both as an employee and dependent on the same benefit plan.

B.  One spouse may elect coverage for the entire family, or each spouse may elect their own individual coverage.

C.  Dependent children can be on one spouse’s policy or divided between spouses, but they cannot be enrolled on the same plan for both parents.

D.  If a child is a State of Arizona employee and/or Arizona University System employee, they cannot be enrolled as a single subscriber and as a dependent on the same benefit plan.

E.  An employee cannot enroll simultaneously as an employee and in the retiree medical, dental, and/or vision plans for the Arizona Department of Administration (ADOA) and the Arizona State Retirement System (ASRS).

Section V: Continuation of Benefits

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires the University to offer continuous group medical and dental coverage to an employee and/or the employee’s qualified beneficiaries under certain qualifying events if coverage is lost through no fault of the employee. Coverage may last up to 36 months depending on the qualifying event. Visit the NAU’s Cobra webpage for more information.

Related Information*

NAU Benefit Website 

 Related NAU Policies 

 ABOR Policies 

 IRS and the Department of Labor – Health Care Benefits 

IRS and Department of Labor – Retirement Plans 

Policy History*

10/01/2026: Policy adopted. This policy replaces 3.01 Benefit Plan General Information and 3.02 Benefits Summary.

*Related Information and Policy History are solely for the user’s convenience and are not part of the official University policy. 

Appendix A – Benefit Eligibility by Benefit Plan and Employment Category

Benefit Eligibility Chart

E – Eligible for benefit

R – Eligible for benefit if eligibility rule is met

Regular Positions:

  • FAC – Faculty
  • UNS – University Staff
  • APP – Appointed Staff
  • CLS – Classified Staff
  • POD – Postdoctoral Scholar

Other Positions:

  • PTF – Part-time Faculty
  • STU – Student
  • TMP – Temporary
  • GRD – Graduate Student

Voluntary Benefits
BenefitFACAPPCLSPODUNSPTFSTUTMPGRDEligibility Rule
Dental insuranceEEEEE
Flexible spending accountsEEEEE
Life insuranceEEEEE
Medical insuranceEEEEERRRRAverage 30+ hours per week over a measurement period
Short term disabilityEEEEE
Vision insuranceEEEEE
Leave Benefits
BenefitFACAPPCLSPODUNSPTFSTUTMPGRDEligibility Rule
Extended medical leaveRRRRR6 months of continuous regular service
Family medical leave (FMLA)RRRRRRRRR12 months of service & worked 1,250+ hours in previous 12 months
Military leaveRRRRRRRRREligible under USERRA
Parental leaveRRRRR12 months of service & worked 1250+ hours in the previous 12 months paid, else unpaid
Personal leave of absenceRRRRR6 months of continuous regular service
Paid Time Off
BenefitFACAPPCLSPODUNSPTFSTUTMPGRDEligibility Rule
Paid holidaysEEEEE
Sick timeEEEEE
VacationREEEEOnly Fiscal Year Faculty are eligible for vacation
Community engagement timeEEEE
Compassionate transfer of leaveREEEEOnly Fiscal Year Faculty are eligible because they accrue vacation
Bereavement leaveEEEEE
Jury dutyEEEEE
VotingRRRRRSubject to A.R.S. 16-402
Retirement & Long-Term Disability
BenefitFACAPPCLSPODUNSPTFSTUTMPGRDEligibility Rule
Arizona State Retirement SystemEEEERRWork 20 hours per week for at least 20 weeks of the fiscal year
Optional Retirement PlanEERRWork 20 hours per week for at least 20 weeks of the fiscal year. UNS in support and operations roles are not eligible.
403b & 457b Retirement PlansEEEEEEEEE
Long-term disabilityEEEEERRWork 20 hours per week for at least 20 weeks of the fiscal year.
Other Benefits
BenefitFACAPPCLSPODUNSPTFSTUTMPGRDEligibility Rule
Tuition Reduction ProgramEEEEE
Employee Assistance & WellnessEEEEE
Social Security & MedicareEEEEEERERStudent workers are the IRS Student exception to FICA tax.
Unemployment insuranceEEEEEEEEE
Worker's compensationEEEEEEEEE

Notes:

Appointed Staff includes Academic Professionals, Administrative Faculty, Administrators, Head Coaches and Service Professionals 

Graduate Assistants (GRD) may qualify for separate Medical Insurance and Education Assistance (Tuition Reduction) offerings through the Graduate College. Information can be found at https://nau.edu/graduate-college/graduate-assistantships-tuition-waivers/ .