Employment Status Change
Upon separation from IU or transfer to an ineligible employment class or position, employees are no longer eligible to actively participate in the benefit plans listed below. To take advantage of any residual value the benefit plans may provide, be sure to read the Benefits After Separation booklet and follow up on any required actions described in the booklet sections titled “Participant Responsibilities.”
Medical and Dental Plans
Medical and dental coverage held at the time of separation or transfer may be extended at group rates through COBRA continuation coverage.
Life and Voluntary Insurance Plans
Your life and voluntary insurance plans, including supplemental life, critical illness, and supplemental AD&D policies, may be converted or ported to an individual policy by the employee (or dependent, in some cases). Review the Benefits After Separation guide for instructions.
Retirement Plans
You are no longer eligible to make payroll contributions or receive any IU contributions to your retirement plan accounts as of the date of termination or transfer to an ineligible position. Vested funds may be left in the plan account, withdrawn, or rolled over to an eligible retirement plan (e.g. an IRA).
IU Supplemental Early Retirement Plan (IUSERP): If a participant terminates employment before age 55, the account will be automatically forfeited. Participants who terminate after attaining age 55 while in active employee status, will become 100 percent vested in their IUSERP account.
PERF Participants: Participants with less than 10 years of PERF service may request a distribution of their Defined Contribution (DC) account. Participants with at least 10 years of PERF service, but who have not met the age requirement, may leave their ASA with PERF until they reach the required age to begin the pension benefit. Participants who have met the age and service requirements may elect to initiate their Pension benefit.
Flexible Spending Accounts (FSA)
Healthcare FSA: You are entitled to be reimbursed for qualified healthcare expenses incurred through the date of termination or transfer to an ineligible position. Participation may be extended by continuing to make contributions on an after-tax basis. Upon termination you will receive a COBRA notice and election form. Claims for expenses must be submitted by February 28th of the following plan year.
Dependent Care FSA: You are entitled to be reimbursed for expenses incurred through the date of termination or transfer to an ineligible position. Claims for expenses must be submitted by April 15th of the following plan year.
Health Savings Account (HSA)
You are no longer eligible to make payroll contributions or receive any IU contributions to the HSA as of the date of termination or transfer to an ineligible position. Upon termination of eligibility, you have options to keep your account with the university’s HSA vendor, transfer the funds to a vendor of your choice, or other options provided for by IRS Code.
Time Off
There are specific policies regarding time off accruals when an employee transfers to an ineligible position or separates from employment with IU. Review the time off policies or the Benefits after Separation booklet for your employee group for more information.
Resources
- Review the Employee Checklist: Separating Employment from IU
- Understand the option of electing COBRA coverage
- Read and understand the Benefits After Separation booklet for your employee group
Make Benefit Changes