Leaving the U

When you resign your position and leave your job with the University, your UPlan benefits will end. When that happens, you have the option to continue coverage at your own cost through COBRA Continuation of Coverage.

However, if you leave the University through a layoff or nonrenewal of your appointment, you may be able to continue your coverage with a contribution from the University for six to 18 months if you worked at the University for at least three years.

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Questions about Your Benefit Options?

Call 4-UOHR (612-624-8647; 800-756-2363, select option 1); or email benefits@umn.edu.

Resignation

When Benefits Coverage Ends

Your medical, dental, and life insurance coverage ends on the last day of the month in which you actively worked. Disability coverage ends the day after your last day of employment.
Federal and state laws allow you to continue your medical, dental, and life coverage at your own cost. This is called COBRA Continuation of Coverage.
To qualify for COBRA:

  • You must have been covered as an eligible employee or dependent on your last day of work.
  • You must complete the COBRA Request for Continuation of Coverage form (pdf) within 60 days from your last day of work to elect continuation coverage.
  • Coverage becomes effective following the last day of your group coverage. If you wait up to 60 days before applying for COBRA continuation, you may experience a gap in coverage due to the cancellation of benefits.

Unused Vacation and Sick Time Upon Resignation

Each employee group has its own policy for paying out unused vacation hours. No employees in any employee group are paid for unused sick leave when they leave the University.

AFSCME Clerical or Technical

An employee who leaves University employment and still has remaining vacation available is entitled to be paid for unused vacation.

Civil Service

Civil service staff who leave the University with 10 years or more of service and 200 or more hours of vacation have their payout deposited into an individual, tax-free account, called a Health Care Savings Plan, to be used to reimburse post-employment medical expenses.

Employees who leave University employment with fewer years of service or hours of remaining vacation are entitled to be paid for unused vacation.

Teamsters

An employee who voluntarily resigns will receive pay for unused, accumulated vacation, provided he or she submits written notice of resignation to the assigned supervisor at least two calendar weeks prior to the effective date of resignation.

However, employees who leave the University with 10 years or more of service and 80 or more hours of vacation have their payout deposited into an individual, tax-free account, called a Health Care Savings Plan, to be used to reimburse post-employment medical expenses.  

Faculty and P&A

When a faculty or P&A staff member has worked 67% time or greater for 11 months, any unused vacation days (up to the maximum of one year’s accumulation of 22 days) may be paid out when the employee ends University employment.

Access to MyU

Your Internet ID and password will remain active until December 31 of the year following your resignation. For example, if you resign on April 22, 2016, your ID and password would be effective until December 31, 2017. This will allow you continued access to MyU.

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Layoff or Non-Renewal Programs

if you have received a layoff or non-renewal, you need to decide whether or not to participate in the layoff or non-renewal programs. In exchange for participating in the program, you waive certain rights under your employee group and agree not to reapply or be rehired for University employment for a period equal to the number of weeks of severance paid, beginning on the first day of non-employment.

Eligibility for the layoff or non-renewal programs depends on which employee group you belong to. Review your specific policy for your employee group, including appropriate contacts, definitions, procedures to follow, and the forms and instructions that are needed.

Severance Pay Subject to Payroll Taxes

Please note that if you participate in the layoff or non-renewal program, the lump-sum severance payment is subject to payroll taxes with some taxes withheld at the supplemental wages tax rate. This payment cannot be placed into the Optional Retirement Plan or Section 457 Deferred Compensation Plan.

Continuing Your Benefits

If you choose to participate in the layoff or non-renewal program, the University will contribute toward the cost of your medical or dental coverage for the period shown in the chart below. The contribution is based on your work location and permanent address on your last day of employment.

Full Years of Continuous Service

Period of University Contribution

Less than 3 years

University will NOT contribute

3 through 4 years

University will contribute for up to 6 months

5 through 9 years

University will contribute for up to 12 months

10 years and over

University will contribute for up to 18 months

Your benefits available under COBRA run concurrently with the benefits extended under the layoff or non-renewal program.  

If you choose not to participate in the layoff or non-renewal program or if the University contribution period is less than 18 months, you can continue your medical, dental, and life insurance benefits for up to 18 months through COBRA continuation coverage by paying the full cost plus a 2% administrative fee.

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