Separation

The questions below are related to the separation of employment from TAMU-CC.

If I separate employment and have less than a 12-month appointment, what happens to my insurance and benefits?

SEPARATION DURING SEMESTER

 Insurance coverage will end on the last day of the month which includes your effective separation date.

SEPARATION IN SUMMER

 Insurance coverage will end on the last day of the month which includes your effective separation date.

If a 9-month appointment is followed by a 50% or more appointment for Summer I or Summer II, the 9-month position will remain active as the primary and the employee will get employer contribution until the summer appointment ends.  If the summer appointment is less than 50%, then the summer appointment will become primary, and the employee will not be eligible for the employer contribution (unless they are eligible per ACA).  

* Retirees have different criteria to review and information may be different for retiring faculty. 

What are the benefits available to me?

Your health, vision, and/or dental coverage will continue through the last day of the month in which your employment ends.  Through COBRA, you can keep medical, dental, and Vision coverage, if you were enrolled prior to your separation you can keep coverage through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

What happens to my Health, Vision and Dental Coverage?

After your coverage ends, you may continue to participate in the group insurance plans through COBRA (health, vision, and dental) for up to 18 months.  You will be charged the full monthly premium, plus a 2% administrative fee.

What happens to my other insurance coverages?

Your Basic Life/Basic Accidental Death and Dismemberment or Alternate Basic Life end on your last working day.  Optional Life, Dependent Life, and Optional AD&D coverages will continue through the last day of the month in which your employment ends. Within 31 days after your coverage ends, you may convert these coverages to individual policies without providing evidence of good health.

What happens to my Flexible Spending Accounts?

If you are enrolled in a Health Care Spending Account, you may continue participating for the remainder of the plan year by electing COBRA continuation. The cost will be the amount of your current deduction plus 2%, but you will no longer be able to contribute using before-tax dollars. If you choose not to contribute to your account after your employment ends, you can be reimbursed only for eligible charges incurred up to the last day of the month in which you stopped receiving pay.

If you are enrolled in a Dependent Day Care Account when you terminate employment, you will no longer be able to contribute to your account. However, you may continue submitting claims incurred through August 31 of the current plan year against the balance of your account.

If I am participating in a Tax Deferred Account and/or TexSaver Deferred Compensation Plan what happens to my retirement funds at separation?

Tax-Deferred Account (TDA) and/or Texas$aver Deferred Compensation Plan contributions will stop on the date you terminate employment.

Regardless of whether or not you want to withdraw your funds, you will need to complete an TDA Notification of Change in Status Form, available from the Human Resources Benefits office. This form is used to notify your TDA vendor that you have separated employment an have access to your funds.

If you are enrolled in a TDA, you may choose to:

  • leave your account as-is until you retire, become disabled or die;

  • roll over your account to an individual retirement account (IRA);

  • withdraw your account balance and pay tax on it (including a penalty tax unless you are disabled, leave A&M System employment after age 55, or you take an annuity); or

  • if you are changing jobs and your new employer offers a similar plan, transfer your balance to that plan.

If you do not choose to leave your TDA account intact, you will need to contact your TDA vendor to find out what options are available for withdrawing your funds.

If I am participating in the Optional Retirement Program (ORP) what happens to my retirement funds at separation?

Contributions will no longer be made to your ORP account after your employment ends, and you will have the option to withdraw your contributions (provided you are terminating employment with all Texas public institutions of higher education), or you may leave your retirement account intact.  ORP retirement benefits are based on the accumulated amount of funds in your ORP account (no age/service formulas).

Regardless of whether or not you want to withdraw your funds, you will need to complete an ORP Notification of Change in Status Form, available from the Human Resources Benefits office. This form is used to notify your ORP vendor that you have separated employment and have access to your funds.

  • If you leave your account intact, you may be eligible for group insurance benefits later as a retiree when you meet the criteria listed under Regaining System Benefits as a Retiree. If you withdraw funds from your account, you may be subject to taxes and penalties. You will need to complete an ORP Change in Status Form as part of the separation process.

  • To withdraw from your account, you should contact your ORP vendor. Regardless of whether or not you want to withdraw your funds, you will need to complete an ORP Notification of Change in Status Form, available from the Human Resources Benefits office.

If I am participating in the Teacher Retirement System (TRS) what happens to my retirement funds at separation?

When you leave System employment, your TRS contributions will end, and you will have the option to leave your retirement account intact, withdraw, or roll your contributions into another eligible retirement plan.

If you have at least five creditable years of service and you leave your TRS account intact, interest will continue to be credited to your account.

If you have fewer than five creditable years of service, your account will stop earning interest after you have been absent from TRS service for five consecutive years.

To withdraw or rollover funds, you must complete theTRS6 form, Application for Refund. Mail the TRS form directly to TRS in Austin. The address is on the form.

For TRS forms and information: http://www.trs.texas.gov or contact TRS at 800-223-8778.