University of Wisconsin–Milwaukee

Employee Benefits upon Termination
Purpose

This brochure contains information regarding your benefits when you terminate employment. If you are retiring, refer to the brochure entitled "Employee Benefits Upon Retirement" which is available from the UWM Benefits Office. If you are leaving the University to transfer to another Wisconsin state agency or UW-System institution, most benefit programs will remain available to you. Contact the Personnel or Payroll office at your new agency/institution for additional information and instructions.

Wisconsin Retirement System (WRS) If you terminate employment before age 55 (age 50 if you are a protective employee), you have two options:
  • Leave your funds in the WRS until age 55 (age 50 for protective categories) when you may be eligible for a regular retirement annuity. Or
  • You may elect to receive your WRS employee required contributions (plus accrued interest) as a separation benefit if you apply before age 55 (age 50 for protective categories).
If you take a separation benefit, you forfeit:
  • the matching employer required contributions (plus accrued interest),
  • the number of years of WRS service credits, and
  • all other rights under the WRS. For example, if you take a separation benefit and later return to state employment, you must serve six months of service before becoming eligible for employer contributions toward the cost of state group insurance.

In addition, a separation benefit is treated as taxable income in the year received and may be subject to a mandatory 20% withholding, and an additional 10% tax penalty unless rolled over into an Individual Retirement Account (IRA).

The best option for you depends on a variety of factors including your age, when you were first covered under the WRS, and the number of years of WRS service credit you have accumulated.

State Group Health Insurance

State Group Health insurance coverage is paid one calendar month in advance. This means your coverage will terminate at the end of the month in which employment ends. You can continue your coverage for an additional 35 months at full cost (no university contribution). Thereafter, you are eligible for a non-group conversion contract, generally at a higher cost. A Continuation/Conversion Notice form and the brochure entitled "Continuation or Conversion of Group Insurance" are available from the UWM Benefits Office. If you terminate at age 55 (age 50 for protective categories) or older with at least 20 years of WRS creditable service and defer applying for your retirement annuity, your health premiums can be paid from your accumulated sick leave account.

EPIC Benefits +: Epic Life

EPIC Benefits + is paid one calendar month in advance. If you wish to continue your coverage after termination (at the same premium rate), contact the UWM Benefits Office for continuation information.

Dental Insurances

Anthem Dental Blue and/or Dental Wisconsin
Dental insurances are paid one calendar month in advance. If you wish to continue your coverage after termination (at the same premium rate), contact the UWM Benefits Office for continuation information.

Union Dental Plans
Dental coverage is paid one calendar month in advance. Contact your local Union office regarding continuation of coverage.

State Group Life Insurance

Coverage is paid one calendar month in advance. Coverage can be continued upon termination if your employment began prior to January 1, 1990 AND you satisfy one of the following requirements or you began employment after January 1, 1990, had been covered by the State Group Life Insurance plan in 5 calendar years AND you satisfy one of the following requirements:

  • Receive an immediate WRS annuity or meet all of the requirements for receiving an immediate annuity except the filing of an application. See the brochure entitled "Employee Benefits Upon Retirement" for more information, or
  • The sum of your years of WRS creditable service on January 1, 1990 plus your years of State Group Life Insurance coverage after 1989 equals 20 years, or
  • The sum of your years of service on payroll with the same employer on January 1, 1990 plus your years of group life insurance coverage after 1989 equals 20 years. The service must be with the same employer that you were employed with immediately before termination of employment.

Your life insurance coverage will be the same amount as prior to termination. Your monthly premiums will be calculated in the same manner as prior to termination and must be paid directly to the Minnesota Life Insurance Company. A Continuation Coverage form (ET-2154) must be completed.

When you reach age 65, your Supplemental, Additional, and the Accidental Death and Dismemberment coverage terminates. Your basic coverage will continue at age 65 for life at no cost to you, but at a reduced amount. Basic coverage will reduce to 75% at age 65 and to 50% at age 66. Basic coverage never reduces below 50%.

If you terminate employment due to a disability or ill health, you may be eligible for a premium waiver. Contact the UWM Benefits Office for details.

If you are not eligible to continue coverage under the above provisions, you can convert to an individual policy if you apply no later than 31 days from the date your coverage terminates. Coverage must have been in effect at least 6 months before termination. Spouse and Dependent coverage ceases at termination, but also can be converted to an individual policy, generally at a higher cost. For conversion information, contact Minnesota Life Insurance Company. See the table below for the address and phone number.

University Insurance Association (UIA) Life Insurance

(Unclassified Faculty and Academic Staff Only) UIA Life Insurance coverage ceases on September 19 of the plan year for which the annual premium was paid. For example, if you had the annual premium deduction taken from your November paycheck (October earnings), your coverage would end on September 19 of the following year. If you wish to continue your UIA Insurance coverage, you must pay the annual premium directly to Minnesota Life Insurance Company. Premiums are due no later than November 19 each year and no renewal notices are issued until after your initial premium is received. Contact the UWM Benefits Office for the UIA Life Insurance Continuation form.

Individual and Family Group Life Insurance

Coverage is paid one calendar month in advance. If you are under age 70, coverage can be converted to an individual policy (generally at a higher cost) by applying no later than 31 days from the date your coverage terminates. Spouse and Dependent coverage can also be converted to individual policies. Contact Minnesota Life Insurance Company to arrange coverage. See the table below for the address and phone number.

UW Employee's Inc. Group Life Insurance (Mutual Service Life)

Coverage is paid one calendar month in advance. Coverage can be converted to an individual policy (generally at a higher cost) if the policy has been in force for 12 consecutive months prior to termination. You must exercise this option no later than 31 days from the date your coverage terminates. Contact Beauford Sherman. See the table below for the address and phone number.

Accidental Death and Dismemberment (AD&D) Insurance

Coverage is paid one calendar month in advance. Coverage can be continued at current premium rates but coverage will reduce beginning at age 70. Refer to the Accidental Death and Dismemberment brochure for policy limitations after termination. You will be required to prepay premiums for coverage from your termination date to October 31st of the year you terminate. For coverage after November 1, the Hausman Hemb & Associates Insurance Company will bill you annually for the premium, plus a nominal administration fee. To request a Continuation Notice for AD&D, or additional information, contact the UWM Benefits Office.

Employee Reimbursement Accounts (ERA)

You have the option of continuing participation in the ERA program for the remainder of the plan year in which you terminate. To continue participation you can:

  • have multiple deductions taken from your last payroll check on a pre-tax basis, or
  • make after-tax payments by completing an ERA Continuation Form.

For more information, contact the UWM Benefits Office.

Tax-Sheltered Annuities (TSA)

For information regarding your options upon termination, contact the TSA vendor with which you have invested your tax-sheltered contributions.

Deferred Compensation Plan

You must contact the Wisconsin Deferred Compensation Program to fill out paper work to elect a benefit commencement date for your deferred compensation funds. This form must be filled out within 60 days of your termination date. See the last page of this brochure for the address and phone number of the Wisconsin Deferred Compensation Program.

Income Continuation Insurance (ICI)

ICI coverage ceases on the date of termination.


PLAN NAME CONTACT PHONE ADDRESS
Accidental Death and Dismemberment UWM Benefits Office 229-4463 Engelmann Hall Room 125
Deferred Compensation Plan Wisconsin Deferred Compensation Program 1-800-257-4457 16 N. Carroll Suite 209 Madison, WI 53703
Dental Plans
UWM Benefits Office 229-4463 Engelmann Hall Room 125
Employee Reimbursement Accounts UWM Benefits Office 229-4463 Engelmann Hall Room 125
Income Continuation Insurance Department of Employee Trust Funds 1-877-533-5020 PO Box 7931 Madison, WI 53707-7931
Individual and Family Group Life Insurance UWM Benefits Office 229-4463 Engelmann Hall Room 125
EPIC Benefits +
UWM Benefits Office 229-4463 Engelmann Hall Room 125
State Group Health Insurance UWM Benefits Office 229-4463 Engelmann Hall Room 125
State Group Life Insurance Minnesota Life Insurance Co. (608)277-8690 PO Box 259708 Madison, WI 53725-9708
Tax-Sheltered Annuities TSA Vendor --- ---
University Insurance Association Life Insurance UWM Benefits Office 229-4463 Engelmann Hall Room 125
UW Employee's Inc. Group Life Insurance UWM Benefits Office 229-4463 Engelmann Hall Room 125
Wisconsin Retirement System Department of Employee Trust Funds 1(877)533-5020 PO Box 7931 Madison, WI 53707-7931

Every effort has been made to ensure that the information in this brochure is accurate. If the information should conflict with State Statutes, statutes must be followed.

The University of Wisconsin does not discriminate on the basis of disability in the provision of programs, services or employment. If you need this printed material interpreted or in a different form, or if you need assistance in using this service, please contact us at benefits@uwm.edu.