Frequently Asked Questions

These frequently asked questions are provided to help you understand what GCS leadership is considering to address possible budget reductions and redirections. Addition questions on unemployment, benefits, payroll etc., are here to help should these considerations become part of the district’s budget for 2009-10.

To receive more information on Employee Support Center, please call (336) 433-7191 or e-mail
employeesupport@gcsnc.com.

Budget

Q. Why are we considering ways to reduce our budget?
A. GCS gets approximately 60 percent of its budget from the state, 30 percent from the county and the rest from the federal government or grants. One reason we are considering budget reductions and redirections is in response to Governor Perdue’s proposed budget, which includes a reduction in the amount of money budgeted for local school districts.

At the same time, county officials have asked us to provide a flat budget for local funding. This means there will be no increases for energy costs, transportation or any increase in student population. So, in order to prepare a “flat” budget, we’ll have to make some reductions in locally funded areas.

In addition, the district is redirecting part of its budget to support the strategic plan initiatives, such as the regional reorganization currently underway. GCS wants to support the strategic plan with current resources, not an increase in budget.

Q. I thought the governor was increasing the budget for education.
A. Yes and no. While the Governor’s proposed education budget includes some line item increases, others are reduced. For example, the Governor’s budget, if ultimately adopted, includes a discretionary cut that could cost us approximately $7 million.


Q. If we do not have final information from the state or county on what our budget will be, why are we making cuts now?
A. Any reduction in staffing depends on approval of the Board of Education and would impact staffing for the 2009-10 school year. We have to anticipate the outcomes of these budgets now, based on current information, in order to be ready to begin the new school year with a working budget in place.

So, while having conversations about these considerations is difficult because we’re telling employees things before final decisions can be made,  we think it is important to give our employees as much information as we can as early as we can.

If the final budget reductions required by the state or other funding sources are less than anticipated, the district intends to return resources to schools first, rather than to central administration.

The superintendent presents his budget to the Board of Education on April 7. The school board will hold work sessions and a public hearing during May. The school board must present its budget request to the commissioners by May 15. The state, which provides the largest part of our budget, does not have a set time frame for budget development.

Q. Why did you target certain positions for the potential school-based cuts?
A. The district did not consider this lightly. As you know from previous communications, we have already made significant reductions in central administration budgets and personnel. District leadership, working in conjunction with the Superintendent’s Principals Advisory Committee, identified two ways to reduce or redirect school-based budgets and personnel. Our goal was to protect the classroom as much as possible while minimizing job loss.

First, the district is withholding approximately 50 percent of the discretionary Weighted Student funding dollars, which would yield about $6 million. The Weighted Student Funding Formula is the calculation used to tie additional budget dollars to individual students based on specific needs. At this time of year, the district typically holds back 25 percent of these dollars, so we’re being a little more cautious this year in response to current economic conditions.

Secondly, we’re withholding certain positions from the planning allotments sent to schools, yielding a potential savings of about $2.9 million. These positions include middle school instructional technology facilitators, media assistants, several elementary English Speakers of Other Languages (ESOL) teachers and high school testing coordinators.

In all, 90 school-based positions may be eliminated; however, the actual number of individuals impacted likely would be less due to vacancies, retirements, etc. For example, we believe the 7.5 ESOL positions at the elementary school level considered for elimination would be absorbed through attrition, not job loss for individual ESOL teachers. That’s why we did not include any elementary ESOL teachers in the meetings we had this week with impacted employees.

Some principals may choose to buy back some of the impacted positions using discretionary school-based budget dollars. Some additional positions may be cut or added due to changes in their projected student enrollment and/or position exchanges made by principals as well. This is a process that occurs every year, and is not related to the need to cut budgets. This process also isn’t tied to the reorganization and redirections currently underway – changes that were outlined as part of the strategic plan launch in January.

Q. Shouldn’t we cut central office administration first?
A. We already have. At the March 10 board meeting, we announced that several positions will be eliminated or collapsed. These include instructional improvement officers, school support officers, and support personnel, among others.


Q. So how much of an impact is this on next year’s budget?
The district anticipates having to reduce or redirect approximately $22 million in the 2009-10 budget. About $13.1 million would come from central administration. However, since most of the district’s resources are at the school level, the budget cuts will likely include school-based cuts as well. We anticipate that $8.9 million would come from school-based budgets. 

It is important to note that at this time, GCS is not considering a change to the formulas used to allocate K-12, classroom teachers to schools.

Q. Are you cutting classroom teachers or increasing class size?

At this time, GCS is not considering a change to the formulas used to allocate K-12, classroom teachers to schools. Principals are currently using the same funding formulas that were in place last year. Student enrollment drives these formulas. If a school is projected to gain or lose students, they can also expect to gain or lose teaching positions, based on the formulas.

Q. What about the federal stimulus money?
A. At this point, we anticipate receiving funds tied to specific categories like Title I (addresses issues related to poverty), IDEA (special education) and educational technology. We do not know how much money will flow to GCS, nor do we know what rules or regulations will be developed to dictate how these dollars are spent.The Governor and the North Carolina Department of Public Instruction have indicated that federal stabilization funds, also part of the stimulus package, will be used to balance the state budget. As more information becomes available, we will update you.

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Unemployment

Q. Am I eligible to receive unemployment compensation?
A. Only the Employment Security Commission of North Carolina  can determine eligibility for unemployment compensation.  Generally, eliminated positions are grounds for eligibility.

Q. Who do I contact to regarding unemployment compensation?
A. Visit the Employment Security Commission of North Carolina’s web site at: www.ncesc.com or call your local office.  The telephone number for the Greensboro Office is 336-334-5777.

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Paycheck/Sick-Annual-Personal Leave Days/Retirement Account

Q. What will be included in my final payroll check?
A. The final payroll check will include salary for the payroll period, earned longevity (if eligible) and accumulated earned annual leave and bonus leave (if eligible).


Q. What happens to earned sick leave?
A. Earned accumulated sick leave will be “banked” for 60 months. If you return to work in a North Carolina school system, as an eligible permanent full-time or part-time employee within 60 months, the sick leave will be restored.


Q. What happens to sick leave, if I do not return to work as an eligible permanent full-time or part-time employee within 60 months?
A. The sick leave will be lost.


Q. What happens to earned personal leave?
A. A teacher must be credited with all personal leave accumulated up to the time of reassignment or separation provided that the teacher is reinstated as an eligible permanent full-time or part-time teacher within 60 calendar months from the date of separation or reassignment. If a former employee has not returned to work in a North Carolina school system (or another State agency that accepts our personal leave), as an eligible permanent full-time or part-time employee within 60 months, the personal leave is lost.


Q. Can my retirement contributions remain with the Teachers’ and State Employees’ Retirement System?
A. Yes.

Q. Can I withdraw my contributions from the Teachers’ and State Employees’ Retirement System?
A. Yes.


Q. Is there a penalty assessed if I withdraw my retirement contributions?
A. Yes, there is 10% penalty, if you are younger than 59 and one half years of age.


Q. Will I have to pay federal and state taxes on the withdrawal of contributions?
A. This will be determined at the time of withdrawal.
 

Q. If I am vested (five years of contributory service) in the Teachers’ and State Employees’ Retirement System, what are the consequences if I withdraw my contributions?
A.  If you are vested and withdraw your contributions, you are forfeiting a future pension and any other benefits for which you are eligible.  If you return to state employment, you will not have any service credit towards retirement.


Q.  If I am not vested (five years of contributory service) in the Teachers’ and State Employees’ Retirement System, what are the consequences if I withdraw my contributions?
A. If you are not vested and withdraw your contributions, you are forfeiting a future pension and any other benefits for which you are eligible.  If you return to State employment, you will not have any service credit towards retirement.


Q. How do I withdraw my retirement contributions?
A. You must complete Form 5, “Withdrawing Your Retirement Service Credit and Contributions”.  The form can be printed from the Retirement System’s web site at www.myncretirement.com . 
Once completed, send to the Benefits Office on Eugene Street.


Q. How long will it take to receive my contributions?
A. You should receive your contributions in 60 to 90 days.
 

Q. If I have a 401(k) plan or a 457 Deferred Compensation Plan, who should I contact?
A. You will need to contact Prudential Retirement at 1-866-627-5267 or 624-0151.


Q. If I have a 403(b) annuity, who should I contact?
A. You should contact JEM Resource Partners at 1-800-943-9179 or email jemtpa@jemtpa.com.

Q. Will I receive information in writing about the status of my benefits, due to Reduction in Force (RIF)?
A. Yes, you will receive a letter from the Benefits Department explaining the termination of your benefits (effective dates of termination, etc.), which will provide available options and include telephone numbers of our participating insurance companies.

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Health/Dental/Vision/COBRA

Q. If I lose my job due to RIF, what happens to my health insurance coverage?
A. An employee who loses his/her job as a result of a RIF will continue to have coverage under the State Health Plan up to twelve months, as long as the employee has twelve or more months of service and the employee was covered by  the State Health Plan at the time of separation from service. You will continue the employee coverage on a non-contributory basis (at the school system’s expense) for up to twelve months.


Q. What happens to my dependent (children and /or spouse) health insurance coverage?
A.  An employee may continue coverage (at the employee’s expense) of eligible dependents during this twelve-month period. The employee and any eligible dependents will remain on the employing unit’s billing statement while receiving RIF benefits. The employing unit is responsible for collecting and remitting any applicable premiums.


Q. Can I change my health insurance coverage?
A. Yes, the State Health Plan will allow an employee who has experienced RIF to change the health plan coverage (move from 80/20 to 70/30) and coverage type (employee-family to employee only), as long as the request is made within 30 days from the date of separation from service.


Q. How do I make the changes?
A. Call the Benefits Office at 370-8996 or 370-8352 for information regarding the continuation of health insurance.  You will need to complete a health insurance change form.

Q. If I do not wish to continue health insurance coverage under RIF, may I obtain coverage at a later date?
A. No, if you do not elect to continue health insurance coverage under RIF immediately following separation, you cannot obtain coverage at a later date.


Q. What happens to health insurance coverage after the twelve month period?
A. After one year, a former employee and eligible dependents may continue health coverage on a fully contributory basis (at former employee’s expense).  A former employee who chooses to continue coverage after the initial twelve months will be directly billed by Blue Cross Blue Shield of North Carolina.


Q. How long do I have to decide to continue health coverage, after the initial twelve month period?
A. After the expiration of the initial twelve month period, the former employee is required to make a decision within 90 days.


Q. How long can a former employee continue to pay for health care coverage under RIF benefits?
A. RIF health care coverage can continue indefinitely. However, since the former employee is responsible for the premium after the initial twelve -month period, coverage will be cancelled if the premium is not paid.  If the former employee has dependent coverage and fails to pay the dependent premium during the initial twelve month period, the dependent coverage will be cancelled.


Q.  What happens to RIF health insurance benefits, if I am re-employed with the State of North Carolina?
A. If you are re-employed with the State of North Carolina and are eligible for health coverage on a non-contributory basis (at employer’s expense), your RIF health insurance benefits will end.


Q. Am I eligible for health insurance coverage if I do not have twelve months of service?
A. Yes, an employee who does not have twelve months of service may continue health care coverage at full cost under COBRA for self and any eligible dependents.

Q. What is COBRA?
A. COBRA is the law that requires employers that have 20 or more employees to offer employees and eligible dependents under group health insurance plans “continuation coverage” for at least 18 months after coverage is lost due to a termination of employment and other “qualifying events”.  Employers may charge up to 102% of the cost of the coverage to terminated employees.

Q. Who will send the offer of COBRA for health insurance?
A. The State Health Plan will mail, to your home address, the offer of COBRA for health insurance.


Q. Will I be eligible for COBRA monetary assistance under the new Stimulus Bill?
A. At this time, our understanding is you will be notified by the State Health Plan of your eligibility.


Q. Does the new Stimulus Bill provide COBRA monetary assistance for other types of insurance coverage?
A. At this time, it is our understanding that health insurance, dental insurance and vision insurance will be covered under this bill.

Q. Is making decisions to COBRA or paying directly for insurance a time-sensitive issue?
A. Yes.  It is very important to read carefully all information sent to you regarding COBRA or other methods of continuing plans.
 
Q. Will dental insurance be terminated?
A. Yes.

Q. Will I be able to continue dental insurance if currently enrolled?
A. Yes, you will be able to COBRA your dental insurance.

Q. Who will send the offer of COBRA for dental insurance?
A. Benefits Plan Services will mail to your home address, the offer of COBRA for dental insurance. The offer is for both of our plans, the Direct Reimbursement and Ameritas Dental.

Q. Will vision insurance be terminated?
A. Yes.

Q. Will I be able to continue my vision insurance, if currently enrolled?
A. Yes, you will be able to COBRA your vision insurance.

Q. Who will send the offer of COBRA for vision insurance?
A. Interactive Medical Systems (IMS) will mail, to your home address, the offer of COBRA for vision insurance.

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Life Insurance/Long Term Care


Q. Will term life insurance be terminated?
A. Yes.


Q. Will I be able to continue my term life insurance, if currently enrolled?
A. Yes, you will be able to continue (port) your term life insurance or convert your coverage to another plan with some exceptions. If you are enrolled only in the $5000 coverage, you can convert to another plan; you cannot continue (port) the $5000 plan. If you have more than the $5000 coverage, you can continue (port) the same plan or convert to another plan.


Q. Will the term life insurance be more expensive if I continue or convert the coverage?
A. Yes.


Q. Who will contact me regarding term life insurance?
A. You will need to make the initial contact to MetLife (1-877-275-6387), if you want to continue your term life insurance.  A local MetLife agent will contact you after your initial call. You must complete the continuation process within 31 days from the date your coverage terminates.


Q. If I am enrolled in Long Term Care Insurance, who should I contact?
A. You should contact Prudential Financial at 1-800-284-9648.  This coverage is not handled by the Benefits Department but directly between the employee and Prudential Financial.

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Cafeteria Benefits


Q. Will Cafeteria Benefits (cancer insurance, supplemental disability insurance, hospital indemnity insurance, and whole life insurance) be terminated?
A. Yes.


Q. Will I be able to continue my Cafeteria Benefits?
A. You will be able to direct pay cancer insurance, hospital indemnity insurance and whole life insurance.  You must be employed to continue supplemental disability insurance.
 

Q. Who will contact me regarding my Cafeteria Benefits?
A. You will need to contact the companies directly.


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Medical/Dependent care spending accounts


Q. Will medical spending accounts be terminated?
A. Yes.


Q. Is it important that I spend all of the money in the medical spending account before my employment is terminated?
A. It is extremely important that all of the money be spent before your employment is terminated.


Q. If I have not spent all of the money in the medical spending account, may I continue to use the account?
A. You can use the account to be reimbursed for expenses incurred before your termination date.  You cannot use the account for expenses incurred after your termination date.  Your debit card will be cancelled on your termination date.


Q. Can I COBRA my medical spending account?
A. Yes, although there will be no tax advantage to do so.  This will allow you to continue to use “left-over” money in your account until the end of the plan year (December 31, 2009).

Q. Who will send the offer of COBRA for the medical spending account?
A. Interactive Medical Systems (IMS) will mail, to your home address, the offer of COBRA for the medical spending account.


Q. Will dependent care spending accounts be terminated?
A. Yes.


Q. Will I be able to COBRA my dependent care spending account?
A. No, you cannot COBRA the dependent care spending account.


Q. Is it important that I spend all of the money in the dependent care spending account before my employment is terminated?
A. It is extremely important that all of the money be spent before your employment is terminated.


Q. If I have not used all of the money in the dependent care spending account, may I continue to use the account?
A. You can use the account to be reimbursed for expenses incurred before your termination date.  You cannot use the account for expenses incurred after your termination date.

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Pre-Paid Legal/Identity Theft Protection

Q. If I am enrolled in Pre-Paid Legal/Identity Theft Protection, will my coverage end?
A. Yes, coverage will end at the time of termination of employment.  You may continue coverage by contacting Pre-Paid Legal Services and paying directly to them.

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Licensure

Q: I’m a Probationary year 2 of 4 employee that will be impacted by the Reduction in Force.  If I’m offered re-employment in the next three years do I start over in my contract status or do I return as a year 3 of 4?
A: If you are re-employed by GCS with no break in service you would continue as a Probationary year 3 of 4.  However, if you are not immediately re-employed and have a break in service, you would be subject to the regulations regarding contract status which state you must “start over” in the tenure track at Probationary 1 of 4 or Probationary 1 of 1 (for those who previously earned Career status in a public school system in NC)


Q: My colleague and I hold the same credentials and have the same amount of seniority…why am I the one impacted by the reduction in force?
A: When two employees are identical in terms of seniority and credentials, performance is the next factor reviewed in making the final decision.  See “Performance” under “Glossary of Terms.”


Q: How do I get a copy of my Continuing Education report to use in renewing my license in the future?
A: You may access a copy of your Continuing Education Report on the GCS Web site under “Employees” and “Employee Self Service.” https://employeeservices.gcsnc.com/login/logingeneral.aspx?ReturnUrl=%2fDefault.aspx


Q: If I am impacted by the reduction in force, will GCS assist me with license renewal?
A: If you are not employed by GCS or another school district when your license is up for renewal, you will need to renew your license directly through the Department of Public Instruction.  Information is available from their website regarding license renewal http://www.ncpublicschools.org/licensure/update/

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Resources


Q. What important telephone numbers should I retain?
A. Such numbers are:

Q. What important Web sites should I retain?
A. Such web sites are: