SECTION 16.30 BENEFITS UPON LAYOFF AND RECALL
Last Update: 4/09
1. Accrued vacation is paid out on the employee's final paycheck. The employee's previous adjusted employment date (date used for vacation accrual rate) is restored if the employee is reemployed within two years following layoff.
2. Accrued sick leave is not paid out. Following layoff, if the employee is reemployed to another State position within one year (non-contract, UE/IUP), eighteen months (SPOC) or two years (AFSCME), sick leave accrued before layoff is restored. (Note: Although former employees may recall to UE/IUP covered classes for two years, accrued sick leave will only be restored if recalled or reemployed within one year.)
3. Any accumulated compensatory leave not taken will be paid out on the final paycheck.
1. COBRA Health and Dental Benefits
An employee's health and dental plan will remain in effect until the end of the month in which the layoff occurs. If covered by a State sponsored health and/or dental plan prior to layoff, the Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 provides continued group health and dental benefits coverage for 18 months after layoff. If the employee is disabled per the Social Security Administration at any time during the first 60 days of COBRA coverage, they may qualify to continue for up to 29 months. The employee may keep the same benefit plan as when employed. The employee is responsible for the full premium. The State's share of the premium ends at the end of the month in which the layoff occurs.
The Department of Administrative Services (IDAS) will
send a COBRA Notification/Election form to each employee laid off. The employee must return the form to the IDAS Benefits
Section no later than 60 calendar days following the date the coverage
would otherwise end, or no later than 60 calendar days following receipt
of the COBRA election forms, whichever is later.
At the end of the COBRA continued coverage period, individuals will be offered a conversion health plan by the carrier of their current health plan. The conversion plan is available regardless of health status at the time. There is no conversion plan for dental insurance. When the COBRA period is over, dental insurance will stop.
2. Health and Dental Insurance Upon Recall
a.
If an employee is
recalled the employee is eligible for reinstatement of health and dental
coverage. Coverage will begin the first day of the
month following the employee's return to work. The
health and dental enrollment form or enrollment online via IowaBenefits, must
be completed and submitted by the employee within 30 calendar days of the
recall date.
b.
Employees
reemployed after expiration of their recall rights must be treated the same as
a new hire for health and dental enrollment and eligibility requirements.
Group life insurance terminates at the end of the
month in which the layoff occurs. There is, however, a
31 calendar day grace period following the date the life insurance
terminates. During this period, employees may apply
for coverage under the Portability Plan or convert to an individual whole life
policy. The Personnel Assistant maintains the
Portability Application and Life Conversion forms. Employees
who are under normal retirement age can apply for coverage under the
Portability Plan. Employees can choose
to continue 50%, 75% or 100% of their life coverage through the portability
provision. Portability is not available
if the employee is at or above normal retirement age, is entering military
service, or the employee has converted their life insurance coverage to an
individual plan. An employee can port a
portion of their life insurance coverage, and convert the remainder.
The completed form must be submitted to the life
insurance carrier within 31 calendar days of the termination of life
insurance. Any ported or converted coverage will
become effective on the 32nd day following the termination of life insurance. The maximum amount of life insurance that may be continued
is the amount in force when the layoff occurs. Ported
and converted policies do not include accidental death and dismemberment
and/or Long Term Disability (LTD).
Employees
can convert AD&D coverage. AD&D
Conversion Policy Information and Instructions can be found on the internet at http://das.hre.iowa.gov/benefits/lifeinsurance.html#continuationins. The Personnel
Assistant completes the employer section of the Enrollment Card for Conversion and the employee is responsible
for contacting
For an employee who is being laid off, is under 60 years of age, and has applied and been approved for Long Term Disability, life insurance will remain in effect as long as the employee remains approved for Long Term Disability. If an employee is over 60 years of age, is being laid off, and is applying for LTD, the employee's life insurance needs to be ported or converted to an individual whole life policy. The Personnel Assistant should provide the portability and conversion notices at the time the layoff occurs.
Employees recalled from layoff within one year
(two years for AFSCME and UE/IUP covered classes) are eligible for
reinstatement of life insurance, in the same amount previously held, or less,
to begin the first of the month following the employee's return to work. To reinstate supplemental life insurance coverage, the
employee must submit the enrollment card to the Personnel Assistant within 30 calendar
days of the return. Basic life and LTD coverage
will begin the first of the month following the employee's return.
Employees reemployed after expiration of their recall rights shall be treated the same as a new employee for life and LTD enrollment and eligibility.
Long Term Disability insurance terminates on the last day of the month in which an employee is laid off. There are no conversion provisions for LTD.
You may continue to seek reimbursement for eligible expenses incurred through the date of your layoff. Your coverage in the dependent care flexible spending account ceases unless you meet certain eligibility requirements, such as are employed elsewhere or are actively seeking employment. If you are recalled within 30 days of your layoff date, you are automatically reinstated at the same annual election amount. If you are recalled more than 30 days after your layoff date, you are eligible to participate in the program and may elect a new amount for the remainder of the calendar year.
You may continue to seek reimbursement for eligible expenses incurred through the last day of the month in which your last payroll deduction is made. Otherwise, your coverage in the health care flexible spending account ceases unless you are eligible for and elect COBRA coverage, in which case you continue to make contributions (although on a post-tax basis) and can make claims for eligible expenses that arise during the period of COBRA coverage. If you are recalled within 30 days of your layoff date, you are automatically reinstated at the same annual election amount. If you are recalled more than 30 days after your layoff date, you are eligible to participate in the program and may make elect a new amount for the remainder of the calendar year.
Participants in the Retirement Investors’ Club (RIC) (formerly known as the deferred compensation program) have many options when they terminate from State employment. You have the option to:
·
Leave your money
in RIC and continue to defer taxes (at age 70 ˝ you must begin taking your
required minimum distributions).
·
Request total,
partial, or systematic payments from your RIC account.
·
Roll your RIC
account over to an IRA, 401(k), 401(a), 457, 403(b), or 403(a).
If you are recalled, you are eligible to begin contributing to RIC again. If you have closed your account, you must open a new one. If you are receiving periodic payments, you may continue to receive them. You are not eligible to start distributions, however, after you return to work.
Employees who are laid off are entitled to unemployment benefits provided they meet the criteria of "available and able to work." The actual amount is based on the employee's salary and number of dependents.
Employees who are receiving workers' compensation prior to a layoff will continue to receive this benefit until a medical release to return to work has been received from the physician. However, any employee who is using vacation or sick leave to supplement a workers' compensation benefit will no longer be able to supplement.
1. Non-vested employees with less than 6 months of covered service at the time of layoff must take a refund of their IPERS contributions plus earned interest.
2. A non-vested employee with less than four years of covered service may leave IPERS contributions in the system. A refund may be requested at any time. No interest will be credited to the employee's account.
3. Employees with four or more years of covered service (or who are 55 years of age or older) are vested members of IPERS. Vested members are allowed to leave their contributions in the system until they apply for retirement benefits, or a refund may be requested at any time. Contributions left in the system earn interest and interest dividends.
1. Non-vested members may elect to withdraw their contributions plus earned interest or to leave their contributions in the system. Should a member withdraw their contributions and later return to service no credit will be given for the period covered by the withdrawn contributions. A member who elects not to withdraw contributions who has not been recalled within 4 years ceases to be a member of the retirement system and should contact the Secretary of the Peace Officers Retirement Board to determine his or her options at that time.
2. Members with four or more years of credited service may elect to vest their retirement or to withdraw their contributions plus earned interest. Should a member withdraw his or her contributions and later return to service no credit will be given for the period covered by the withdrawn contributions.