Processing Termination of Employment
If a Participant's employment ceases during or at the end of a semester and the institution does not reasonably expect the Participant's employment to resume or continue with the next semester, then that Participant's employment is considered terminated.
To process a Participant's termination of employment, Campus Administrators must:
- Provide Insurance Conversion Forms to the Participant;
- Provide GIC Retiree information, if necessary, and
- Report the termination to the Plan Administrator.
For every Active Participant who terminates employment with the Commonwealth, the Campus Administrator must, immediately upon termination:
- Complete the top section of the Group Life Insurance Conversion Form (.PDF) and the Long-Term Disability Conversion Form (.PDF); and
- Provide both forms to the Participant.
Participants have only 30 days after their date of termination to submit their conversion applications to the insurance provider.
If the Participant will become a Retiree for GIC purposes, there are additional steps that the Participant must take after termination of employment. These are outlined in the How Participants Secure GIC Post-Employment Benefits section.
To report a Participant's termination to the Plan Administrator, Campus Administrators must use the Status Change form for termination of employment.
When a Campus Administrator determines that a Participant has terminated employment, the Date of Termination reported to the Plan Administrator should be one of these dates:
- In cases where salary payments will continue through a period after the employee stops providing services for the institution (e.g., "balance of contract" payments through the summer), the Date of Termination for ORP purposes will be the last day for which the employee receives pay (typically August 30 or 31).
- In cases where salary payments cease when the employee discontinues providing services for the institution at the end of a semester (e.g., when an employee elects to be "paid off" immediately instead of receiving the "balance of contract" payments), the Date of Termination for ORP purposes will be the last day of the semester.
- In cases where salary payments cease when the employee discontinues providing services for the institution during a semester, the Date of Termination for ORP purposes will be the last day worked.