Leave of Absence

Understanding your benefits during a leave of absence

When you take a leave of absence, it’s important to know whether your benefits will be affected and if so, what to do about them. There are two types: paid and unpaid.

Paid leave of absence

If you receive pay (not grant or fellowship monies) during a leave of absence, benefit plan contributions will continue to be automatically deducted, and your coverage will continue.

Unpaid leave of absence

When you begin and return from an unpaid leave of absence, you have certain options and responsibilities for your benefit plans. Your options are to:

Continue your coverage by making personal payments when billed. Certain restrictions may apply; please reference our Health Care Benefits during an Unpaid Leave of Absence policy for additional details. Personal payments for benefit plans during an unpaid leave of absence are on an after-tax basis
Terminate your coverage. You then have the option to reapply for your benefit plans within 30 days of returning to work.

Important benefit information for those taking an unpaid leave of absence

To terminate coverage during an unpaid leave of absence or reinstate coverage after returning from a leave of absence, complete the life event enrollment process through the Employee Center within 30 days of the start or end of your leave.

Our benefits team regularly reviews leaves of absence and payroll status. If it is determined that you need to be billed for benefits, you will receive an invoice to your home address on file. In some cases where leaves are less than 60 days, you may not be billed but instead have premiums taken from your paycheck upon return from the leave.

Employee Center

You may take the following actions:

Terminate coverage when you begin unpaid leave.
Reinstate coverage when you return.
Make personal payments to continue coverage during unpaid leave.

You may take the following actions:

Terminate coverage when you begin the unpaid leave.
Make personal payments to continue coverage during the unpaid leave for up to 12 months.
Covert to an individual policy within 31 days of the loss of coverage if you do not return to work after 12 months.
If AD&D coverage is terminated during a leave, you must wait until the annual open enrollment period to re-enroll, with an effective date of January 1.

You may take the following actions:

1. Stop participation when you begin unpaid leave.

OR

2. Suspend coverage during the leave. When you return you can either keep the same monthly contribution (lower annual pledge) or increase your monthly contribution to keep the annual pledge the same. Expenses incurred during any suspended time are not eligible for reimbursement.

Coverage continues for 12 months.
If leave extends past 12 months, you may terminate coverage or make personal payments to continue coverage.
Coverage automatically starts again when you return from leave.
Convert to an individual policy within 31 days of the loss of coverage if you do not return to work after 12 months of leave.

You may take the following actions:

Terminate coverage when you begin the unpaid leave.
Reinstate coverage when you return (evidence of insurability required).
Make personal payments to continue coverage during the unpaid leave for up to 12 months.
Convert to an individual policy within 31 days of the loss of coverage if you do not return to work after 12 months.

You may take the following actions:

Terminate coverage when you begin the unpaid leave.
Reinstate coverage when you return (evidence of insurability required).
Make personal payments to continue coverage during the unpaid leave for up to 12 months.
Convert to an individual policy within 31 days of the loss of coverage if you do not return to work after 12 months.

Don’t forget to look at these plans!

You may also want to familiarize yourself with how the plans below are affected by a leave of absence.

IU retirement plan:There will be no contributions to your IU retirement plan while on unpaid leave.
IU 457(b) retirement plan: Contributions cannot be made while on leave and once you return to work, retroactive contributions cannot be made.
IU tax deferred account: Contributions cannot be made while on leave and once you return to work, retroactive contributions cannot be made.
IU tuition benefit:You are eligible for IU tuition benefit while on an unpaid leave.

Be sure to also double check your IU retiree status. Some periods of leave without pay may not count towards the total years IU of service required for retiree status.

Resources for you

Go to Employee Center

You can start your change of life event and other tasks.

IU policy: healthcare benefits during an unpaid leave of absence

Find out more details on IU’s policy on an unpaid leave of absence.

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