Annual Absence Management Training

1. Annual Absence Management Training Lincoln Financial Group 02/28/2019 Lead Benefits Administrator Lashell Johnson

2. Types of Absence • FMLA • Medical (MLOA) • Medical leave less than 1 year • Military • Personal (PLOA) • State Leaves • Short-term Disability (SDI)

3. Absence: LTS vs. PTO • ARUP • All Leaves of absence (LOA) are unpaid. However, when involving an employee’s own serious health condition, the employee is required by ARUP to use all grandfathered long-term sick (GLTS) benefits before taking time off without pay. The employee can then choose to use PTO (or go unpaid) after the GLTS benefits are exhausted. Employees must communicate intent to use PTO before their LOA or time will default to unpaid. • For other types of approved FMLA (i.e., care of a newborn or newly adopted child, care of a sick family member, etc.) GLTS benefits are not available. The employee can choose to use PTO (or go unpaid) during this absence.

4. Short-term Disability • Lincoln – Protect your paycheck when you can’t work • A cash benefit of 60% of employees weekly salary (up to $2,500) when the employee is out of work for up to 13 weeks due to injury, Illness, or recovery from childbirth. Childbirth benefits are payable for up to 6 weeks for a normal delivery and up to 8 weeks for a C-section delivery. • 60% paid tax-free • First Day Hospitalization – receive 60% on day 1 • Sickness/Accident – receive 60% on day 8

5. STD Plan Comparison If the above claim was approved as a standard maternity claim, the claimant would save close to $936 in taxes by using the combined LFG STD / LTS benefit (assuming an 8 week duration). Additionally, the employer is now paying the STD premium, further saving the employee $424.80 in STD premiums for those who are currently enrolled in the Voluntary STD program. • The 2018 – 2019 RCCH STD plan administered by Lincoln Financial Group is set up as a Gross-Up plan. Because taxes are paid on the premium remitted to LFG, STD benefits received are considered non-taxable at time of claim. • Federal taxes calculated for illustration purposes. • Sample benefits calculation is calculated assuming that EIB and STD run concurrent with the same approval dates.

6. Acute Illness • Acute illness (cold, flu, ear ache, tooth pulled, etc.) • Employees misses 1-4 days from work due to an acute illness • First two consecutive days PTO or unpaid • Third consecutive day GLTS - if no GLTS then PTO - if no PTO then unpaid • Must Submit a request for LTS form and a Dr. note to HR

7. Good News! • Effective immediately, HR will be responsible for entering GLTS and/or PTO for employees on a continuous approved leave of absence for medical conditions or PLOA • HR may need to contact the supervisor to get the employee’s schedule • Employee will need to notify benefitshelp@aruplab.com if they want to use PTO time for their medical absence. If no notification, HR will not pay the PTO time. • The only time a supervisor will enter GLTS into the time clock is for intermittent leaves of absence • Employee must report time to Lincoln when they call in to request intermittent leave time (only pay if approved)

8. Improvement Opportunities • Have your employee request a LOA 30 days in advance to avoid delays with approvals. • If an acute illness turns into 4 or more scheduled days missed, have the employee contact Lincoln. • Whenever the word “surgery” is used by the employee, have the employee contact Lincoln. • If an employee is hospitalized, have them or a family member start a leave request with Lincoln. HR can assist them if needed. • Employee network access is removed during an approved LOA, they may not work during the approved leave unless directed by their physician.

9. Improvement Opportunities (continued) • If an employee returns early or doesn’t come back from an approved continuous leave please notify HR. • Get the return to work note from the employee before they begin working after Medical/FMLA LOA. • Don’t tell employees to go the clinic to be put on a LOA, this should be the decision of the provider. • You can address claim questions regarding your employee directly with the claims examiner. • Supervisors should use the App or Lincoln website to view employees that are currently on LOA and to pull reports.