Fringe Benefits for Separating Employees: Other than Retirement

FRINGE BENEFITS FOR SEPARATING EMPLOYEES
For Reasons OTHER Than Retirement (R. 10/07)

What happens to your fringe benefits when you leave City employment for reasons other than retirement?

The following information addresses common questions General City employees may have concerning the effects of separation from City Services for reasons other than retirement. It is for informational purposes only and does not confer, add, retract or modify any benefits to which employees are otherwise entitled. This information is not intended for protective service personnel.

COBRA Continuation Coverage:

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a Federal law that requires employers to provide continued group health and dental coverage to separating employees. The COBRA program is how you can continue your group health and/or dental coverage after it would have normally expired. The extension of coverage can be for up to 18 months, with you paying at least 100% of the monthly premium. The Employee Benefits Division will mail you notification of your COBRA benefits after your department reports any "off the payroll" transactions. It provides you with all the details regarding the length of your eligibility, your cost, when it begins, when it ends, and other important information. Read it carefully. If there is something that is not understood, contact the Employee Benefits Division at 286-2047, or click here to send an email message.

Compensatory Time/Owed Time:

If you leave City employment by any means, you are entitled to receive pay for all accumulated "Comp Time." If, however, you have an owed time balance at separation, the amount will be deducted from your paycheck. If you have any specific questions, please contact your department's payroll personnel.

Deferred Compensation:

Employees participating in the Milwaukee Deferred Compensation Plan (MDCP) are eligible to withdraw funds from their account on the 1st of the month following 60 days of separation from service, and are required to begin withdrawing funds in the year in which they turn age 70½. In order to withdraw funds there are several forms that need to be completed. Nationwide Retirement Solutions (NRS), the administrator of the MDCP, must receive the completed forms at least 60 days in advance of the requested payment date. To obtain the necessary forms, more detailed information concerning your options and obligations, or to schedule an office visit please call a NRS Plan Service Representative at 414-276-2079 or 800-829-1183. The NRS office is located at 735 N. Water Street, Suite 612, Milwaukee, WI 53202 (in the First National Bank Building; west side of street). Click here to visit their website.

Flexible Choices Program:

• Flexible Spending Account - Medical:
  • If you leave City employment and you are enrolled in a Medical-FSA, your period of coverage ends on your separation date unless you arrange to maintain your account. You must claim reimbursement of eligible expenses within 30 days of your date of separation from the City. Expenses incurred after your coverage ends are not eligible for reimbursement unless you continue making "after-tax" contributions to your account. Please contact the Employee Benefits Division at 286-3184 for further information.
• Flexible Spending Account - Dependent Care:
  • Coverage for the Dependent Day Care-FSA ends on your separation date. You must claim reimbursement of eligible expenses within 30 days of your date of separation from the City. Contact the Employee Benefits Division at 286-3184 for further information.

Any questions regarding these accounts should be directed to ProcessWorks, Inc. at 1-262-827-7030 or 1-888-868-2492 (click here to visit their website). Their address is PO Box 2490, Brookfield, WI 53008-2490.

Group Life Insurance:

When you leave City employment, your life insurance coverage will continue for thirty (30) days from your last day on payroll. During this time you may purchase an individual life insurance policy at standard rates without a medical examination. Contact the Employes' Retirement System at 286-3557. Click here to visit their website; click here to send an email message.

• Click here for the Life Insurance Certificate for City Employees

Health and Dental Insurance:

Group health and dental coverage will usually provide you with coverage through the end of the month following the month you go "off the payroll." There are limited exceptions to this rule so you should check with your departmental payroll personnel or the Employee Benefits Division.

Example:
If February 10 is your last day on the payroll, your group health insurance coverage will provide you with coverage through the end of March.

If separation from City employment is "for cause," health and dental coverage will end at the end of the same month as the "off the payroll" date rather than the end of the following month. Contact the Employee Benefits Division at 286-3184 for further information; click here to send an email message.

Pension:

If you separate from City employment for any reason, and you have at least four (4) years of qualifying service, you may have rights to a deferred pension when you reach age 60. At that time you may receive a deferred retirement allowance. This allowance is calculated in the same manner as a service retirement allowance. If you are already age 60 when you separate from City employment, you may be eligible for an immediate retirement benefit no matter how many years of service you have. Please contact ERS at 286-3557 for further information.

• Cash Disbursement
  If you separate from City employment for reasons other than retirement or death, and you have at least eight (8) years of qualifying service, you may be eligible for a cash disbursement of your accumulated contributions, or a deferred retirement
• Voluntary Separation
  If you consider leaving City employment after fifteen (15) years of service and are already age 55, your benefit can start immediately. The benefit will be reduced because it began earlier than a regular service retirement. Please contact the Employes' Retirement System (ERS) at 286-3557 prior to separation.
• Involuntary Separation
  If you are discharged or your position is eliminated, and you are not re-employed with the City or affiliated agency, you may be eligible for special separation benefits. Please contact ERS at 286-3557 for further information.

Note: If you were hired after January 1, 2000 contact ERS regarding a possible refund of your 1.6% pension contributions.

Other questions? Please direct all of your Pension benefit questions to ERS at 286-3557, or click here to visit their website (click here to send an email message).

Savings Bonds:

Employees who are participating in the City's U.S. Savings Bond Payroll Deduction Program, who have an accumulated bond balance remaining at the time of separation from City employment, must contact the Office of the Comptroller, Payroll Administration Division at 286-2363 to request that a refund of the remaining bond balance be included on their last payroll check.

Sick Leave:

If you leave City employment by any means other than normal service retirement, you are not entitled to any portion of your remaining sick leave balance. However, you are entitled to payment for any Sick Leave Control Incentive Program (SLCIP) days that you may have earned and not previously used. If you have any specific questions, please contact your department's payroll personnel.

Tuition Reimbursement:

Employees must remain in City service for a 6-month period after the successful completion date of an approved course or the amount reimbursed will be deducted from the employee's final paycheck.  Employees of Local 215 (MPFFA) must remain in City service for a 1-year period.

 Execptions:

• retirements
• transfers to MPS
• positions eliminated due to budget cuts
• tuition reimbursement used by the employee at the department's request