SECTION 16.30 BENEFITS UPON LAYOFF AND RECALL
Last Update:
4/04
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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. |
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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.) |
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3. Any accumulated compensatory leave not taken
will be paid out on the final paycheck. |
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1. COBRA Health and Dental
Benefits |
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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. |
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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. |
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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. |
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2. Health and Dental Insurance
Upon Recall |
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a. If an
employee is recalled the employee is eligible for reinstatement of health and
dental coverage in the same program and plan, with the same coverage (single
and family) or less, and with the same family members or less as held prior
to layoff. Coverage will begin the first day of the month following the
employee's return to work. The health and dental enrollment form must be
submitted by the employee within 30 calendar days of the recall date. |
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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. |
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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 convert to an individual whole life policy, or, in
certain circumstances, apply for coverage under the Portability Plan. The
Personnel Assistant maintains the Life Conversion and Portability Application
forms. Employees who have $20,000 or more in Optional Term Life coverage may
be able to apply for coverage under the Portability Plan. This provision is not available if the
employee has less than $20,000 of Optional Life coverage or if the employee
is leaving employment due to disability or retirement. The completed form
must be submitted to the life insurance carrier within 31 calendar
days of the termination of life insurance. Any such conversion will become
effective on the 32nd day following the termination of life insurance. The
maximum amount of life insurance that may be converted is the amount in force
when the layoff occurs. Converted policies do not include accidental
death and dismemberment and/or Long Term Disability (LTD). |
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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
converted to an individual whole life policy. The Personnel Assistant should
provide the conversion notice at the time the layoff occurs. |
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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. The
enrollment card must be submitted by the employee within 30 calendar
days of the return. LTD coverage will begin the first of the month following
the employee's return provided the employee completes the life enrollment
card. Any portion of previous time worked will be credited for any needed
determination of future LTD benefits. |
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Employees reemployed after expiration of their
recall rights shall be treated the same as a new employee for life and LTD
enrollment and eligibility. |
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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. |
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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. |
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You may continue to seek reimbursement for eligible
expenses incurred through the date of your layoff. Otherwise, your coverage in the health care
flexible spending account ceases unless you 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. |
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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: |
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·
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). |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |