Employee Matters
This column prepared by Employee Compensation and Benefits Services addresses campuswide employment issues. Send your questions to wisweek@news.wisc.edu.
Termination and benefits
How does termination due to layoff affect my benefits?
If your employment is terminated due to layoff, you will be treated like any other employee terminating UW or state employment except for State Group Health Insurance.
How is my health insurance different?
Your health insurance is paid two months in advance. For group health insurance purposes, if your employment is terminated due to layoff, you will receive an additional three months of university contribution.
If you are eligible to retire (55 for general/teacher and 50 for protective) and you retire on an immediate annuity (or are eligible to retire on an immediate annuity and have 20 years of creditable service), your accumulated sick-leave hours will be converted to sick-leave credits to pay your health-insurance premiums. Accumulated sick-leave (plus supplemental sick-leave credits if eligible) will be converted to credits at your current base rate of pay for payment of health-insurance premiums. You may use these credits immediately or escrow them if you have comparable health-insurance coverage elsewhere.
If you are not eligible for an immediate annuity (or are eligible but do not have 20 years of creditable service) upon termination due to layoff, you can convert your sick leave through the university. No supplemental credits are available with this option. You may use these sick-leave credits to pay your health-insurance premiums until the earliest of the following:
- the credits are exhausted;
- you have accepted employment that makes you ineligible for unemployment compensation; or
- five years have elapsed from the date of layoff.
You may apply for COBRA benefits that allow you to continue coverage for up to 36 months after your sick-leave credits are exhausted. You are responsible for paying the monthly premium to your health plan.
What about my other insurance benefits?
Other benefits generally have conversion or continuation provisions.
What about my Wisconsin Retirement System account?
Employer and employee contributions to your WRS account will end on the date of layoff. If you are younger than 55 (50 for protective), you are eligible to take a separation benefit, but then you forfeit the employer contributions to your account. You would be treated as a new employee for all benefits purposes if you return to state or university employment. If you are 55 or older (50 for protective), you are eligible to apply for a retirement annuity.
Contact Employee Compensation and Benefits Services
If you are laid off, you must contact Employee Compensation and Benefits Services about your eligibility to continue or covert insurance benefits at employee@bussvc.wisc.edu or 263-7556 or 262-5650 to ensure that you receive complete information.