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.

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 or 800-756-2363) and select option 1 or send an email to 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 permit 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 have 60 days from your last day of work to elect continuation coverage and complete the Request for Continuation of Coverage form (pdf).

Coverage is 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. Electing early will avoid disrupting your coverage.

Unused Vacation and Sick Time Upon Resignation

See the policies below for your employee group regarding eligibility for payout of unused vacation hours or deposits to the Health Care Savings Plans. 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

As of August 1, 2008, civil service staff who leave the University with 10 years or more of service and 200 or more hours of vacation receive Health Care Savings Plan deposits in lieu of vacation payouts. 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 shall receive pay for unused, accumulated vacation, provided he/she submits written notice of resignation to the assigned supervisor at least two calendar weeks prior to the effective date of resignation. However, since April 1, 2006, the Teamster collective bargaining contract has included Health Care Savings Plan deposits for those who leave the University with 10 years or more of service and 80 or more hours of vacation.

Academic

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

An important decision to make regarding layoff or non-renewal is 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 upon the employee group to which you belong. Click on the link to review the specific policy governing your employee group, including the policy, 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 rate. This payment cannot be placed into the Optional Retirement Plan or Section 457 Deferred Compensation Plan.

Continuing Your Benefits

If you elect to participate in the layoff or non-renewal program, the continuation of medical and dental coverage available under COBRA runs concurrently with the benefits extended under the 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 residence 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

If you elect 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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