Work/Life: You Leave the University
Leaving the University Before Age 55?
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Leaving the University Before Age 55?

What Should You Do?

Make sure that your department processes the forms needed to show you as a terminated employee in the University system. If you are still shown as a benefits-eligible employee in the system, many of the benefits to which you are entitled after your employment ends cannot be processed.

Make sure that your address of record with the University is correct, especially if you are moving. You can change your address of record through your department. You can also e-mail the Benefits Office at benefits@uchicago.edu to update your address for benefits purposes.

Direct any questions to the Benefits Office via e-mail at benefits@uchicago.edu, in person at 956 East 58^th Street (we recommend making an appointment) or by phone at 773-702-9634. You may also wish to access information online at http://hr.uchicago.edu; click on Benefits.

In brief, here is what happens to your benefits when your employment with the University ends.

• Health Insurance
• Dental Benefits
• COBRA Coninuation for Health and/or Dental Benefits
• Portability/Conversion of Life, Long-Term Disability and Personal Accident Benefits
• Retirement Benefits
• Flexible Spending Accounts

Health Insurance  

Your University health insurance coverage ends on the last day of the month in which your employment with the University ends. For example, if you terminate employment on the 3rd of a month, it remains in effect until the last day of that month.

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Dental Benefits

Your dental coverage ends on the last day of the month in which your employment with the University ends. There are no exceptions to this rule.

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COBRA Continuation for Health and/or Dental Benefits  

You have the right to continue any University health and dental coverage in effect when your employment ends for up to 18 months. WageWorks will mail you all the information you need to elect continued health and/or dental coverage. You have 60 days from the date you receive the COBRA forms to elect continued coverage; if you become covered under a new health plan during this time you may not need COBRA coverage. The premium for coverage under COBRA is 102% of the full cost — you pay the premium you paid as an employee plus the University’s portion of the cost. You also pay a 2% service fee. The coverage will be retroactive to the date your coverage terminated.

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Portability/Conversion of Life, Long-Term Disability and Personal Accident Benefits

Portable life insurance benefits: If you are under age 65, you can continue the life insurance coverage you had in effect when you terminated employment (up to $300,000), with no requirement to show evidence of insurability. The premium for this coverage is set by the insurance company under a different group policy. The life insurance portability form can be obtained from the Benefits Office. You have 31 days from the date your employment terminates to make the election with the insurance company.

Conversion: You have the right to convert any group life, long-term disability coverage, and/or personal accident insurance coverage in effect when your employment ends to an individual policy. The conversion forms can be obtained from the Benefits Office. You have 31 days from the date your employment terminates to make the election with the insurance company.

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Retirement Benefits 

If you participate in one or more of the University’s retirement plans when your employment ends, you may:

• Leave your vested retirement accumulations with TIAA-CREF and/or Vanguard and continue to direct the investment of your retirement plan assets until the law requires you to start receiving benefits;
• Transfer/rollover your vested accumulations to another tax-deferred account such an Individual Retirement Account (IRA) or 401(k) plan or another 403(b) sponsored by your new employer which will continue the tax-deferred status of your retirement money; or
• Elect to receive your vested retirement plan funds and incur federal taxes, including a penalty for receiving the money before age 59 ½ , unless the money is paid due to retirement or death.

Call TIAA-CREF (800-842-2776) to obtain the appropriate forms. Vanguard will automatically mail information to you when your employment ends. You may also contact Vanguard directly (800-523-1188), or if you are a registered user on www.vanguard.com, you may also request a distribution online. To register for immediate online access, you will need your plan number 090005.

If you are a staff employee who is vested, you may elect to receive the present value of the defined benefit portion of your benefit in a single lump sum. Contact the Benefits Office to obtain the proper election forms. You may also obtain the form at http://hr.uchicago.edu/forms/benefits.html#retirement.

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Flexible Spending Accounts

If you maintain a flexible spending account, be sure to file a claim with WageWorks (www.wageworks.com) for reimbursement of claims incurred before the date you terminate employment. For a health care account, you may claim your annual amount up to the amount of claims incurred before your employment terminates. You can always claim up to 100% of the balance of your dependent care account for a given calendar year

You should file your claims as soon as possible, but you have until June 30th after the close of the calendar year in which your employment ends to file claims.

Remember: Health care claims incurred after your termination date are not eligible for reimbursement. If you have more money than claims incurred in your health care account at your termination date, you may elect COBRA for reimbursement of the unused money in your flex account. Contact the Benefits Office for more information.

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