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Preface

Table of Contents

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CONTENTS
Scope
Policy Statement
Reason for Policy
Procedures
Definitions
Sanctions

ADDITIONAL DETAILS
Web Address
Related Information
History
Additional Contacts

Effective: January 1, 2010
Last Updated: June 27, 2012

Responsible University Office: University Human Resource Services

Responsible University Administrator: Senior Vice President & Chief Financial Officer

Policy Contact: University Human Resource Services

A. Scope

This policy applies to all Hourly employees and Hourly positions at Indiana University.

B. Policy Statement

1. Individuals in Hourly positions are not permitted to work 1,930 or more hours in a calendar year. In order for an individual to work 1,930 or more hours in a calendar year, the person must be a Staff employee of the University. Departments must follow normal University and campus procedures in requesting approval to establish a new Staff position, and then that new position would be advertised and filled following associated Personnel policies. If a Staff position is not approved or the individual is not selected for the new Staff position, then the individual must be terminated from the University.

2. Individuals in Hourly (HRR) positions are not permitted to work 1,000 or more hours in a calendar year. In order for an individual to work 1,000 to 1,929 hours in a calendar year as an Hourly employee, the department must establish the status of the position as Hourly with PERF (HRP). (Employees in Hourly With PERF positions are eligible to participate in the PERF base retirement plan and IU TDA and IU Retirement Savings supplemental retirement plans.) Normal University and campus procedures would be followed in requesting approval to change a position from Hourly to Hourly With PERF. If an Hourly With PERF position is not approved, then the individual must be terminated from the University.
3. Employees terminated due to reaching the threshold hours in 1 and 2 may be rehired into Hourly positions at the beginning of following calendar year.
4. All hours worked for Indiana University in a calendar year in all positions will be counted in determining when and if the 1,930- or 1,000-hour thresholds are reached with the exception below.
   1. A Student employee who is not subject to FICA taxes due to his or her status as a Student is not eligible for enrollment in PERF and the hours worked as a Student employee do not count towards the 1,000-hour threshold.
5. If the 1,000-hour threshold is reached through work in more than one position in the calendar year, or if an employee holds or has held an Hourly with PERF position in the calendar year, then all the positions in which the individual is employed in the remainder of the calendar year must be established as Hourly with PERF positions. An individual can not work any further that calendar year unless all positions in which he or she is employed are PERF covered.

C. Reason for Policy

1. The 1,930-hour threshold is based on the Board of Trustees direction that employees who perform full-time work for Indiana University should be treated in a consistent manner, with similar rights and privileges provided to other full-time employees. The 1,930 figure is based on an amount that approximates full-time employment (2,080 hours) less University provided paid time-off for holidays, vacation, PTO, and sick leave.
2. The 1,000 hour threshold is to ensure compliance with Indiana state code for employee participation in the PERF retirement plan and compliance with federal regulations for offering IRC Section 403(b) retirement plans. (Effective January 1, 2010, in order for Indiana University to provide the IU TDA 403(b) supplemental retirement plan to any part-time employee, the University must allow participation by all part-time employees; including Hourly employees working 1,000 or more hours in a calendar year.)

D. Procedures

1. Departments are to establish an Hourly position when the work need for the position is less than 1,000 hours in a calendar year.
2. Departments may establish Hourly With PERF positions when the work need for the position is 1,000 to 1,929 hours in a calendar year.
1. In the event that expected hours of work change so that an Hourly position would meet the above 1,000-hour threshold, then the department must process and submit HRMS documentation to designate it as an Hourly With PERF position, subject to normal University and campus approvals.
2. If the work need is equal to or greater than 1,930 hours, a Staff position must be established, subject to normal University and campus approvals. See the personnel policy on Establishing Staff Positions for the procedures.  Options include establishment on a 12-month or 10-month basis, from 50% to 100% FTE.
3. The effective date for any Hourly or Staff position is the date final approval is obtained, and there will be no retroactive adjustments. (There can be no retroactive employee participation on PERF or supplemental retirement plans.)

E. Definitions

1. Hourly positions are defined as those employees not occupying a budgeted line position and are temporary, at-will employees.  These positions are not eligible for such benefits as health care, life insurance, the IU tuition benefit, vacation, and other paid time off benefits.
2. Staff positions are defined as budgeted line positions and may be eligible for such benefits as health care, life insurance, the IU tuition benefit, vacation, and other paid time off benefits, depending on the FTE status of the position. 

F. Sanctions

Managers, supervisors, and employees who violate this policy are subject to disciplinary action, up to and including termination.

G. Web Address for this Policy

hr.iu.edu/policies/hourly/positions.html

H. Related Information

Filling Hourly Positions hr.iu.edu/policies/hourly/filling.html

Establishing Staff Positions hr.iu.edu/policies/uwide/establishing.html

Student Social Security Tax Withholding Exemption FIN-PAY-IV-230 at policies.iu.edu

 

I. History

In September, 1998, the Indiana University Board of Trustees passed a resolution that Staff positions should be established when an Hourly employee has or is expected to work for 1,930 hours or more in a year.  In a separate resolution at that time, the Board of Trustees directed that any Hourly employee who worked 1,000 hours or more in a year is to be enrolled in PERF. Federal regulations effective January 1, 2010, state that in order for Indiana University to provide an IRC Section 403(b) supplemental retirement plan to any part-time employee, it must be provided to all part-time employees.

J. Additional Contacts

Hourly employment information
UHRS
812-855-2010

Policy Interpretation
UHRS
812-856-6047