What happens to your benefits when you terminate employment
We want to provide you with important information on your fringe benefits if you terminate your employment. This information does not apply if you plan to retire. If you have questions, please call (541) 346-2956 or e-mail the Benefits Department.
IMPORTANT: Contact the Benefits Office immediately to complete forms to reinstate your benefits if you return to work at the University of Oregon in the future.
- Flexible Spending Account
- Retirement Plans (PERS and ORP)
- Deferred Compensation
- Tax-deferred Investments
- Sick Leave
- Personal Leave (Classified only)
- Credit Union Payroll Deductions
- SEIU Insurances
- US Bank Visa Card
If you work at least 50% of the month your employment ends (80 hours for classified employees), your insurances will continue until the end of the following month. Your Public Employees' Benefit Board (PEBB) insurances will stop at the end of the month in which you terminate if you work less than 50% of the month.
You will need to contact your Benefits Office for the exact date your insurance will end.
a. Medical-Dental Insurance
Your PEBB group medical insurance may be continued under the COBRA, portability or retiree option. You do not have to retire, but must be eligible to retire to take the PEBB retiree option. Dental coverage may be continued only under the COBRA or retiree option.
A Federal Law, called COBRA, permits you and your eligible dependents to continue your group medical and dental coverage for up to 18 months after your employment ends, unless you become eligible for other group coverage. You will be required to pay the premiums plus an additional 2% administrative fee during the months you are eligible for the continued coverage. BenefitHelp Solutions administers the COBRA plans for PEBB.
BenefitHelp Solutions will be notified about your termination date. They will send a notice of your rights and responsibilities to continue coverage under your group health plan and the rates by first class mail to your last known address. COBRA rates are based on the active employee group rates plus an additional 2% administrative fee. If you decide to continue your insurance on the COBRA program, follow the instructions on the PEBB COBRA Continuation Election Form and return it to the address shown on the form within the designated 60 days for electing coverage. If you have questions after receiving the notice, BenefitHelp Solutions may be contacted at 1-800-556-3137. At the end of the 18 months you may convert your group medical coverage to an individual plan.
PEBB Statewide Medical Plan and Providence Choice Medical Plan
No portability option available. You may qualify for coverage through the State of Oregon: Oregon Medical Insurance Pool (OMIP). Information on eligibility and rates can be found on the web at http://www.omip.state.or.us/.
If you have been covered by a Kaiser medical plan for at least 180 days, another option is to convert your current group medical insurance to a portability plan offered by your insurance company. You can choose this option before, during or after your COBRA continuation coverage ends. To enroll, you must make application directly to your medical insurance carrier within 63 days of the date your group coverage ends. Call Kaiser for information about the portability plans and costs.
If you are not eligible for Medicare and are eligible to retire (do not have to apply for retirement benefits), medical and dental coverage may be continued through the PEBB retiree insurance program. This option can be elected in lieu of the COBRA Option described above or at any time during or at the end of the COBRA continuation period. PEBB retiree information is available from Human Resources at 346-2967or from BenefitHelp Solutions. by calling 1-800-556-3137. You must complete enrollment forms for the PEBB retiree program and premium payments must be made for continuation coverage to be effective.
b. Life Insurance
Continuation coverage is available through portability, conversion options and roll over for spouses or partners who both work for the state. Application for the portability and conversion options must be made directly to The Standard (formerly Standard Insurance Company) within 60 days of the date your employment ends. Application forms are available from Human Resources or PEBB. For information about your right to continue coverage, contact The Standard at 1-800-242-1888. The portability and conversation options are summarized below.
If you are terminating for reasons other than total disability, you may continue or "port" your employee and spouse/domestic partner life insurance coverage (not the basic $5000 or dependent life policies.) Employee life must be ported in order to continue the spouse/partner life policy. Porting allows you to continue the group term life coverage available through The Standard at the same group rates plus a billing fee. Premiums are adjusted annually based on your attained age. To enroll in a portability plan, you must make application directly to The Standard within 60 days of your employment end date.. Contact Human Resources at 346-2956 for an application to port your insurance.
If termination of employment is due to a disability, you have the right to convert your basic life, optional life, spouse/domestic partner life and dependent life insurance to whole life insurance without evidence of insurability. You may also qualify for a lifetime premium waiver. You must make application directly to The Standard within 60 days of your employment end date. Contact Human Resources for the application to convert your insurance.
Roll Over of Optional Life Insurance
When two individuals are married or in a domestic partnership and both are state employees, the employee or the spouse or domestic partner may roll over the optional life insurance coverage to the other's benefit package upon termination of employment.
c. Short-term Disability (STD), Long-term Disability (LTD), and Accidental Death & Dismemberment (AD&D) Insurance
There are no continuation rights, nor can these policies be converted to individual plans.
NOTE: If you are terminating due to disability, contact Human Resources at 346-2956 for the STD and LTD claim forms to apply for benefits. If you have life insurance, The Standard will automatically determine whether you qualify for a waiver of premium when you file for your STD or LTD.
d. Long Term Care Insurance
If you participate in the Unum Long Term Care Insurance plan, you may elect converted coverage. This means that the same coverage you had while you were employed can be continued on a direct pay basis. You must request converted coverage within 60 days of the date your group coverage ends. Complete the Election for Continuation of Coverage, the Notice of Termination for Nonpayment of Premium forms and pay premiums directly to Unum. If you have questions, you can contact Unum at 1-800-227-4165.
If you participate in the Flexible Spending Accounts (FSAs), the monthly amount you are placing in your account for dependent care expenses and/or health care expenses will stop when you terminate your employment. The money remains in your account and can be withdrawn to cover expenses. Qualified expenses that can be reimbursed under this program are those expenses incurred when you were an active employee of the State of Oregon. If you do not want a deduction from your last check, a request to stop the final deduction must be submitted to Human Resources before your last day of employment. You will have 90 days beyond the end of the plan year to submit claims for reimbursement from your account. Any money left in your account(s) will be forfeited because of the IRS Use It or Lose It rule. If you have questions or concerns, please contact ASIFlex at1-800-659-3035 or PEBB at 1-503-373-1102.
a. Public Employees' Retirement System (PERS)
Information about what happens if you quit or lose your job and the Account Balance Withdrawal Application Packet for your PERS/IAP account is available on the PERS website. You can also contact the PERS office at 1-888-320-7377 to obtain this information. Please carefully review the information in the packet to determine whether you want to make a withdrawal. By withdrawing your PERS account, you could lose all membership rights to benefits and future benefits provided by PERS.
Carefully review the Account Withdrawal Application Packet and if you decide to request a withdrawal, submit the forms to PERS. The Payroll Office will submit a Notice of Separation to PERS. The Notice of Separation cannot be sent to PERS until your department submits your terminating paperwork and you receive pay for any remaining time, including vacation, etc. You may wish to contact your department's payroll/personnel person to make sure your final paperwork is processed. A withdrawal may take up to 90 days to process.
b. Optional Retirement Plan (ORP)
If you are not vested when you terminate your employment, you may leave your employee account balance in the ORP and it will continue to earn interest or you may withdraw your employee account balance. In either case, you will forfeit the employer account.
If you are vested when you terminate your employment, you may leave your employee and employer account in the ORP and it will continue to earn interest or you may withdraw your employee and employer account balance. The OUS Controller's Office will notify the ORP companies when you terminate your employment and tell them whether you are vested.
A federal law will require your ORP company to apply a 10% tax withholding on accounts paid out, unless you ask them to roll your payments directly into an Individual Retirement Account or other qualified plan. Please contact your ORP company for additional information about the status of your account, clarification regarding the 10% required withholding, or to request a withdrawal.
If you have been making payroll deductions for The Oregon Savings Growth Plan, contact the coordinator at 503-378-3730 to make sure that your Settlement Agreement shows the method and the time that you want your funds distributed to you.
You will not be eligible to continue contributing to your tax-deferred investment account. Contact your company representative to decide what you want to do with your accumulated funds. If you decide to withdraw your money, check with your representative about penalties or additional tax for withdrawals.
If you are a classified employee, after six months of OUS service you will be paid, upon termination, for unused vacation leave (maximum 250 hours.) If you return to a permanent position within two years after you leave, you will be given credit for your previous service when your monthly vacation accrual rate is calculated.
If you are an unclassified employee, after six months of OUS service you will be paid, upon termination, or transfer for unused vacation leave (maximum 180 hours). Check with your department concerning your vacation pay.
You will not be paid for accumulated unused sick leave when you terminate. If you are a classified (SEIU or GCIU) employee and you return to a permanent position within two years after you terminate, your sick leave credits will be restored. An unclassified employee who returns to work at the University in the future is entitled to have sick leave credits restored as described in the Oregon Administrative Revised Statutes (OARs).
You are not entitled to be paid, upon leaving, for unused personal leave. This leave is to be used prior to your last day of work or it will be forfeited.
Please contact the Oregon Community Credit Union at 687-2347 to make arrangements regarding loan payments.
You may contact the SEIU insurance representative at 503-581-1505 regarding SEIU insurance coverage. You can also contact SEIU at 1-800-452-2146.
The State of Oregon agreement with US Bank Visa requires that the cards be used only for University of Oregon related business. Because your employment is terminating, you will have to relinquish your US Bank Visa card. You can either destroy it or return it to Accounts Payable, Oregon Hall. Please do not try to use your card as it will be canceled.
Any error or omission in this notice is unintentional. If there is a discrepancy between this notice and state and federal law or the plan documents, the law or documents will prevail.