VII - 7.24     USM POLICY ON CALL-UP TO ACTIVE MILITARY DUTY
DURING
          A NATIONAL OR INTERNATIONAL CRISIS OR CONFLICT FOR USM
          EXEMPT AND NONEXEMPT STAFF EMPLOYEES ON REGULAR STATUS.

(Approved by the Board of Regents, October 5, 2001; Amended
December 6, 2002; Amended October 17, 2003; Amended September 10,
2004)

I.   PURPOSE AND APPLICABILITY

     The purpose of this policy is to provide procedures
     consistent with the health and retirement benefits programs
     administered by the State of Maryland; the USM policy on
     return to work; and the USM policies on tuition remission,
     upon call-up to active military duty during a national or
     international crisis or conflict by order of the President
     of the United States.  The policy is not intended to take
     precedence over Article 65, Section 42, of the Annotated
     Code of Maryland and Federal law for orders to active
     military duty made by the Governor of the State of Maryland.
     For the period of July 1, 2003 through June 30, 2005, to the
     extent that there is any inconsistency between Section II of
     this Policy VII-7.24 and Section II.C. of Policy VII-7.23,
     Policy VII-7.23 shall take precedence.
     
     The policy applies to full-time and part-time USM Exempt and
     Nonexempt Staff employees on Regular Status.
     
II.  CONTINUATION OF HEALTH BENEFITS

     A.   Military Reserves - Paid Leave

       1.   Upon call-up to active military duty during a national or
          international crisis or conflict, an employee shall submit a copy
          of the military orders to his immediate supervisor and may elect
          to use accrued leave to remain on the payroll.  In the absence of
          such an election, or upon the exhaustion of accrued leave, the
          employee shall be placed on Leave Without Pay Status.

       2.   While on the active payroll, a reservist shall have the same
          benefit deductions, unless the reservist files an Active Employee
          Enrollment Form to cancel any or all benefits within 60 days of
          entry into Active Duty.  A copy of the military orders must be
          submitted with the Active Employee Enrollment Form.  If the
          Active Employee Enrollment Form is not completed to cancel any or
          all deductions, the same deductions shall continue as long as the
          employee remains on active payroll.

       3.   Personal Accidental Death and Dismemberment (PA&D) plan
          shall not provide benefits to anyone injured in military service.
          Benefits shall be provided, as appropriate, to a spouse or child
          if the employee has family coverage.  A military reservist with
          PA&D "individual" coverage should cancel deductions while on paid
          leave status, as PA&D plan shall not honor any claims for the
          employee while on military duty.  The employee can elect to
          continue PA&D "Family" coverage.
               
       4.   While on active military service, any medical care provided
          to the employee is through the military.  All of the State
          medical plans have blanket exclusions for medical care rendered
          while a person is on active duty while serving in the military;
          this is a standard exclusion clause.

       5.   Dependents of military personnel on active duty are
          automatically covered by CHAMPUS, a federal military health
          program.  An employee called to active duty may elect to
          discontinue state health benefits coverage for his or her
          dependents, relying upon CHAMPUS for dependent health care
          coverage.  In the alternative, the employee may elect to continue
          state health benefits coverage for his or her dependents.  As the
          dependents are not on active military duty, the state health
          benefits coverage shall be the primary coverage for these
          dependents.

     B.   Military Reserves - Leave without Pay

       1.   If the military reservist goes on a Leave Without Pay
          status, the employee may elect to continue benefits as a
          "Military LAW" employee.  The employee should complete the
          "COBRA/LAW/Contractual/Part-time" Enrollment Form.  The
          Institution Benefits Coordinator and Fiscal Officer should
          complete the agency verification portion of the form and identify
          the employee as "Military LAW" on the form.  The Fiscal Officer
          should also complete the appropriate fiscal designation portion
          of the form.
            
       2.   Subsidization for Health, Prescription and Dental Plans:
          While on active military duty, the employee contribution and
          State contribution for health benefits shall continue if the
          reservist elects to continue health, prescription and dental
          plans.  Accordingly, the employee shall not be billed for these
          three types of benefits plans, if they choose to continue them
          while on Military LAW.  Therefore, it is critical that the Fiscal
          Officer completes the fiscal designation portion of the form, as
          the USM shall be charged for the full amount of the premiums
          (employee plus State portions) for the health, prescription and
          dental plans.
       
       3.   Employee-Pay-All Plans (State Life Insurance, Flexible
          Spending Accounts, PA&D, State Long Term Care, USM Life
          Insurance, USM Long Term Disability, etc.).  These types of
          benefits plans are "Employee-Pay-All" and are not subsidized.  An
          employee who elects to continue these benefits shall be billed by
          the State and coupons shall be provided for payment to the State.
          State Long-Term Care, USM Life Insurance and USM Long Term
          Disability continuation payments shall be paid directly to the
          vendor.  The premium payments while on the Military LAW will be
          post-tax and will not affect the employee's W-2 status.
       
       4.   When active duty is completed and the employee returns to
          USM employment, the employee must file an Active Employee
          Enrollment Form (with the discharge papers attached to the form)
          within 60 days of the discharge date to start benefit deductions
          from his/her University paycheck.

III. STATE RETIREMENT AND PENSION SYSTEMS

     A.   All employees called up for military service should complete
       MD Retirement Agency Form 46, "Application to be Placed on a
       Qualified Approved Leave of Absence."  Although Form 46 is not
       formally for a leave of absence, it should be used to notify the
       Retirement Agency of the member's military activation.  If a
       member has already been called up and cannot complete the form,
       the USM institution can submit it on behalf of the called-up
       employee.

     B.   If an employee returns to work within one year of release
       from active duty and did not accept other permanent employment,
       the employee will be reinstated in the pension/retirement system
       and will receive service credit for the term of the military
       service.  The employee does not need ten years of creditable
       service to claim service for military action that interrupts
       membership.  The employee shall submit Form 43, "Claim of
       Retirement Credit for Active Duty Military Service" with the
       proper military documentation when the employee returns to work.
               
     C.   Service credit will be given for up to five years of
       military service that interrupts membership.  This is in addition
       to the five years for military credit for service prior to
       membership.
               
     D.   An employee is not required to make up missed contributions.
       The member's missed contributions and employer's contribution
       costs are included in the annual valuation done by the actuary to
       determine the cost to employers.

     E.   Filing Date for Form 46 "Application to be Placed on a
       Qualified Approved Leave of Absence":

       1.   Military Leave Without Pay - the filing date on Form 46
          shall be the date that the employee begins active duty.
       
       2.   Military Leave With Pay - the filing date on Form 46 shall
          be the date that the employee has exhausted all accrued leave and
          begins Leave Without Pay.

     F.  Military Reserves -Killed in the Line of Duty or
         Disability while on Leave With Pay
          
       An employee who is killed in the line of duty or who
       sustains serious injuries, making it impossible for the
       member to return to work, and such death or injury occurs
       while on Leave With Pay Status, is entitled to the same
       death and disability benefits as an active employee.
       Surviving beneficiaries shall receive a lump sum payment
       of the annual salary plus contributions or, if the spouse
       law comes into effect a monthly check for life. If
       disabled during active duty military service, an employee
       still on Leave With Pay Status, may file for an ordinary
       disability benefit but not an accidental disability
       benefit.

     G.   Military Reserves - Disability or Killed in the Line of Duty
       while on Leave Without Pay
          
       An employee killed in the line of duty, or who sustains
       serious injuries making it impossible to return to work,
       and such death or injury occurs while on Leave Without
       Pay Status, will not receive a death benefit or have the
       right to file for a disability benefit from the State
       Retirement Agency.  If the employee should die, only the
       employee's contributions with interest will be paid to
       the beneficiary.

IV.  OPTIONAL RETIREMENT PROGRAM - LEAVE WITH AND WITHOUT PAY

     A.   The activation date of approved military leave should be the
       date that the employee is activated.

     B.   As a condition of membership in the Optional Retirement
       Program, no death benefit or right to file for a disability
       benefit from the State Retirement Agency is available.

     C.   While still on the payroll, employer contributions to the
       employee's ORP and State service credit shall continue.

     D.   No State service credit shall accrue, nor employer
       contributions shall be made, while the employee is on Leave
       Without Pay.  Upon return to work, USM employer contributions
       shall resume.

V.   USM TUITION REMISSION BENEFIT

     A.   An employee who is currently in a degree-seeking program and
       using tuition remission may continue to use tuition remission if
       called to active duty and stationed locally.

     B.   An eligible spouse/dependent currently in a degree-seeking
       program and using tuition remission may continue to use tuition
       remission.

     C.   If an employee is killed in the line of duty,
       spouse/dependent tuition remission benefits shall be provided in
       accordance with the USM Policy on Tuition Remission for Spouse
       and Dependents.
     
     D.   If an employee does not return to USM service, tuition
       remission for the employee, spouse and dependents shall
       terminate.
VI.
     REPORTING BACK TO WORK

     The period an individual has to report back to work after
     military service is based on USERRA /US Department of Labor
     regulations.

IMPLEMENTATION PROCEDURES

     Each Chief Executive Officer shall identify his/her
     designee(s) as appropriate for this policy; shall develop
     procedures as necessary to implement this policy; shall
     communicate this policy and applicable procedures to his/her
     institutional community; shall forward a copy of such
     designations and procedures to the Chancellor.
     
REPLACEMENT FOR:

N/A

REFERENCE:

Annotated Code Of Maryland, State Personnel and Pension Article,
Section 9-1107; Section subject to abrogation on June 30, 2005.
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