Human Resource Services

A permanent or time-limited staff employee, regularly scheduled to work 20 or more hours per week, who is terminating their employment from the University, is welcome to schedule an exit interview with the Benefits Office. During this interview, the following important benefits information is discussed.

You may retain membership in the Teachers' and State Employees' Retirement System (TSERS) even though you no longer work for a State agency. If you have five or more years of creditable service in the Retirement System, you are "vested." Vested employees who do not withdraw their retirement contributions will be eligible to apply for a retirement benefit when the appropriate age and service requirements are met (currently age 60 with five years of contributing membership for Early Retirement with a reduced benefit, or age 65 with five years of contributing membership for Full Retirement with an unreduced benefit). In addition, if you do not withdraw your retirement and return to work for the State as a permanent full- or 3/4-time employee, your retirement account will be reactivated. If your reinstatement is within five years, your sick leave balance will be restored. (Note: If you are receiving Short Term Disability benefits under the Disability Income Plan of North Carolina (DIPNC), you may not withdraw your retirement contributions. A person in receipt of benefits under the Long Term Disability Plan also may not receive a refund of accumulated contributions from the Retirement System unless these disability benefits are being received under the transition rules.)

If you are vested, you may withdraw your contributions plus a percentage of interest (currently 4% compounded annually). Upon receipt of your retirement refund, you waive any rights to retirement benefits (including participation in the Retirees' Health Insurance benefit) from the Retirement System. If you return to work for the State in a position which qualifies you for retirement benefits, you may repurchase (and thus restore) the creditable service you lost when you received your retirement refund. You must contribute to the Retirement System for five years, upon your return, to be eligible for this service.

If you terminate employment with less than five years of creditable service, you are not vested and are only eligible for a refund of your contributions to the Retirement System (no interest).

If you have been a contributing member of the Retirement System for one year, you are still covered under the TSERS Death Benefit for 180 days from the last day for which you were paid salary. The payment equals the highest 12 months' salary in a row during the 24 months before you die, but no less than $25,000 and no more than $50,000.

The State Retirement System Form 5 can be used to receive a refunds of your retirement contributions. Please note that this form must be notarized. When completed, this form should be sent to the retirement system. An address can be found on the form. Once TSERS receives your application, they may not refund your retirement contributions any earlier than 60 days from the date you terminated your employment, as governed by state law.

Any employee hired on or after October 1, 2006 is still vested for the purposes of a retirement benefit after 5 years of creditable service, but the criteria for continuation of health insurance has changed. Employees hired on or after October 1, 2006 must complete 10 years of creditable service in order for TSERS to pay for ½ your health insurance benefits upon retirement and 20 years of creditable service to have your retiree health insurance paid for in its entirety. If you withdraw or transfer your contributions from this system, you forfeit this benefit.

When requesting a refund of your retirement contributions, please read the form carefully. Of particular interest is the section which discusses the 20% federal tax withholdings if you have your refund paid directly to you. You may avoid this 20% federal withholding as well as the possibility of an additional 10% excise tax if you are under age 59-1/2, are not disabled, etc., if you arrange to have your refund rolled over to an individual retirement account (IRA) or to another qualified employer plan.

Participants in the Optional Retirement Program (ORP) should review the enclosed letter (.pdf) for specific instructions and information.

You may elect to continue your health insurance, at group rates, for up to 18 months immediately following the termination of your employment from the University. Your covered dependents may also elect continuation of coverage for up to 18 months (36 in certain circumstances). The Benefits Office will notify your health plan of your termination of employment. Since you will no longer be covered under the University's group plan, your health plan will then, in turn, notify you directly of your continuation options under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You and/or your dependents will have 60 days to make your election of COBRA coverage, either from the date you receive notice from your health plan or from the date you lose group health insurance coverage on account of a qualifying event. All individuals covered under your group health plan (at the time that your employment terminated) have independent election rights.

Group rates under COBRA include any employer contributions previously made toward the cost of your health care plus any additional expenses you may have had to cover eligible dependents, or additional costs you may have assumed for employee-only coverage under a PPO. In addition, your health plan will assess a 2% administrative charge. If you have questions about your continuation options, you should contact the State Health Plan directly at 1-800-234-2416.

If you are participating in one or more of the voluntary NCFlex plans, you may elect to continue coverage for up to 18 months from the date that your group coverage ends. NCFlex will send COBRA continuation information to your home. Even though you may continue these plans at group rates, your premiums will increase 2% for administrative costs. You will also lose the pre-tax savings you were receiving by having the premiums payroll deducted NCFlex plans with COBRA provisions are:

• Dental Insurance - If you are participating in the University's voluntary dental plan, you may elect to continue coverage for up to 18 months from the date that your group coverage ends. Your dental insurance company will send COBRA continuation information to your home. Questions may be directed to United Concordia at 1-800-291-8039
• Vision Insurance - If you are participating in the University's voluntary vision plan, you may elect to continue coverage for up to 18 months from the date that your group coverage ends. Superior Vision will send COBRA continuation information to your home. Questions may be directed to Superior Vision at 1-800-507-3800.
• Cancer Insurance - If you are participating in the University's voluntary cancer insurance plan, you may elect to continue coverage for up to 18 months from the date that your group coverage ends. Allstate Workplace Division will send COBRA continuation information to your home. Questions may be directed to Allstate Workplace Division at 1-800-521-3535.
• Health Care Flexible Spending Account (FSA) - If you are terminating your employment with the University, you may continue to file for reimbursement of claims incurred prior to the date of your termination. If you elect continuation of your health insurance under COBRA, you may also continue to file for claims against the balance of your Health Care FSA through the remainder of the calendar year. If you do not elect COBRA continuation, any claims incurred after your termination cannot be reimbursed and the remainder of your Health Care FSA is forfeited. For additional information, contact AON Consulting at 1-800-368-3804.
• Dependent Care Flexible Spending Account (FSA) - If you are terminating your employment with the University, you may continue to file for reimbursement of dependent care expenses incurred prior to the date of your termination. Expenses incurred after your termination cannot be reimbursed and the money remaining in your account will be forfeited. For additional information, please contact AON Consulting at 1-800-368-3804.

• Life Insurance – If you are interested in continuing your NCFlex life insurance policy, you will need to contact ING at 1-877-464-5111 for details.
• Accidental Death and Dismemberment - If you are interested in continuing your NCFlex AD&D insurance policy, you will need to contact A.C. Newman & Company at 1-800-257-0930 for details.
• Critical Illness- If you are interested in continuing your NCFlex Critical Illness insurance policy, you will need to contact MetLife at 1-800-438-6388 for details.

The American Recovery and Reimbursement Act of 2009(ARRA), includes a subsidy for COBRA coverage in the event of involuntary termination. Eligible individuals pay only 35% of the full COBRA premiums under their plans for up to 9 months. Insurance providers will include an "Application for Treatment as an Assistance Eligible Individual," form along with COBRA continuation paperwork. Individuals who were involuntarily terminated from employment between September 1, 2008 and December 31, 2009, may be eligible for the ARRA COBRA Premium Reduction Provision, for continuation of existing health, dental, vision and cancer insurance policies. Details about eligibility and additional general information about the COBRA Premium Reduction Provisions can be found at the following websites:
http://www.dol.gov/ebsa/cobra.html
http://statehealthplan.state.nc.us/cobra-subsidy.html

*Note: If you do not receive the ARRA COBRA "Application for Treatment as an Assistance Eligible Individual," form along with your COBRA continuation offer, but think that you should have, please contact the State Health Plan at 888-234-2416, and/or NCFlex at 888-860-6118.

An employee participating in the MetPay plan for group homeowner, auto, renters, etc., may not elect to continue coverage under group rates upon termination of employment. You may elect to continue coverage up to the end of the current policy period by paying the outstanding balance on your premium. Contact MetPay at 1-800-438-6388 for additional information.

Your coverage under the Disability Income Plan of North Carolina (DIPNC) will cease with your termination of employment or upon the loss of your eligibility to participate in the Teachers' and State Employees' Retirement System or in the Optional Retirement Program.

Your coverage under the Liberty Mutual Voluntary Supplemental Group Disability Insurance Plan will cease with the termination of your employment or upon the loss of your eligibility to participate in the Teachers' and State Employees' Retirement System.

Your coverage under the supplemental The Standard Group Long-Term Disability Insurance Plan will cease with the termination of your employment or upon the loss of your eligibility to participate in the Optional Retirement Program.

SPA employees should return ID cards to Human Resource Services. EPA employees should return ID cards to the Office of the Provost.

You may elect to convert your MetLife Group Term Life Insurance policy to an individual policy within 30 days following the termination of your employment from the University. If you are interested in purchasing a conversion policy at non-group rates, please contact MetLife at 1-800-523-2894. If you are participating in the MetLife Universal Life program, you may convert your policy to a direct-bill policy. Contact MetLife to convert your policy to direct-bill and to discuss how long your group rates will remain in effect.

Parking permits should be returned to Parking Services on the final day of employment. Parking Services will then submit a voucher to stop payroll deductions. This will ensure that the parking deduction is not taken from any checks issued for adjusted earnings (overtime), leave payout, etc.

If all of the paperwork required to terminate your employment is submitted by the 10th of the month, you will receive your final paycheck at the end of that month. If, however, there are adjustments for vacation or sick leave, overtime, etc., or if all of the necessary paperwork is received after the 10th of the month, you may not receive your final paycheck until the month after you terminate your employment.

Leave Payout:

• Vacation Leave - If you are leaving state service, you will receive a lump sum payment for any unused accumulated vacation leave, up to a maximum of 240 hours. If vacation leave has been advanced to you, then any deficit will be deducted from your final paycheck on an hour-for-hour basis (or any portion thereof).
• Sick Leave - You cannot receive payment for any unused accumulated sick leave. Instead, if you return to state employment within five years of your termination date, your unused accumulated sick leave balance is reinstated. If sick leave has been advanced to you, then any deficit is deducted on an hour-for-hour basis (or any portion thereof).
• Bonus Leave - You will also receive a lump sum payout for all remaining Bonus Leave (this benefit was only granted to employees working in a leave earning position as of 9/30/02)

*Note: If you are an SPA employee transferring to another state agency, please contact Human Resource Services, 334-5009, for information regarding accrued leave. If you are an EPA employee transferring to another state agency, please contact the Office of the Provost for information regarding accrued leave.

• Longevity Pay - If you are eligible for longevity (SPA only), you will receive the pro-rated amount in your final paycheck.
• Tax Withholding Statement (W2 Form) - If you are relocating, please make sure to provide the University with your new address through UNCGenie to ensure that you will promptly receive your W2 Form at the end of the taxable year.

Your recreational center privileges end upon termination of your employment with the University. If you are having your membership in the Student Recreational Center payroll deducted, your membership will end the last day of the month in which you terminated your employment. If you need to stop this deduction from your final paycheck, please contact Ann Deal in the Student Rec Center at 334-5924.

Once you terminate your employment with the University, you are no longer eligible to contribute to your tax-sheltered annuity program. Please contact your annuity agent for questions about the status of your account. A list of agent names and telephone numbers is available in the Benefits Office.