Leaving Brandeis or No Longer Eligible
Medical/Dental/ Supplemental Vision Insurance
If you are enrolled in the Brandeis University Group Health, Dental, or Supplemental Vision plans your coverage will continue through the last day of the month in which you terminate employment, retire or become ineligible due to a change in your employment status.
Health/Dependent Care Flexible Spending Accounts (FSA)
If you participate in the Health and/or Dependent Care FSA Plans through a pre-tax payroll deduction, your participation will end on the day you terminate employment, retire, or become ineligible due to a change in your employment status. You may apply for reimbursement of eligible expenses incurred on or before your last day of participation. You have until April 30th following the end of the Plan Year (January to December) to file claims.
COBRA Continuation Coverage
In accordance with the federal law known as COBRA, you and your eligible family members may be eligible to continue your group membership in your health, dental and/or supplemental vision insurance plans for up to 18 months, in most cases. The cost of this coverage is generally the full monthly premium of each plan plus a 2% administrative fee.
You also may be eligible to continue your participation in the Health Care FSA under COBRA for the remainder of the current plan year by making payments to Brandeis University through COBRA. However, since you will be making these payments from your own funds, there is no tax advantage. If you elect to continue in the plan, you may continue to submit expenses incurred after your termination in the Plan, as long as your contribution has been made for the period in which the expenses were incurred. You will be responsible for making payment for the full monthly contribution amount to this account plus a 2% administrative fee.
Our COBRA administrator, Health Equity/WageWorks, will automatically mail to your home address detailed information regarding COBRA and the forms you are required to complete to elect COBRA coverage. If you do not receive this information two weeks after your coverage end date, contact the Benefits section of Human Resources at benefits@brandeis.edu.
Please Note: You will have 60 days from coverage end date or date packet is issued, whichever is later to elect coverage and then once payment has been received coverage will be retroactively reinstated to the coverage end date.
Retiring between age 62 and 65 with 20 years of service
If you retire early you may be able to continue the medical insurance only at your current employee rate and Brandeis would continue to pay its share until you reach 65 and are eligible for Medicare. If your spouse is 65 or older during this period they should consider enrolling in Medicare. Dental and vision insurance can be continued through COBRA.
Retiring or No Longer Eligible over age 65
Employees should contact the Benefits Office to request the completion of the Employment Information Waiver form, which when submitted to Social Security along with the Medicare Part B application, will allow the employee to enroll in Medicare Part B without penalty.
Please note: continuing medical coverage through COBRA is not considered active coverage and will result in Medicare penalties.
Health Savings Account (HSA)
If you participate in the HSA Plans through a pre-tax payroll deduction, your HSA remains yours. You have several options regarding its management.
Here are the typical scenarios:
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Keep the HSA: You can retain your HSA and continue using it for qualified medical expenses. There is no time limit on when you must use the funds, and the account will remain tax-advantaged.
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Contribute to the HSA independently: If you are eligible, you can continue making contributions to your HSA even after leaving your job. However, your contributions are subject to annual contribution limits set by the IRS.
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Use the HSA for non-qualified expenses: If you're under the age of 65 and use the funds for non-qualified medical expenses, you will incur a 20% penalty on the amount withdrawn, in addition to regular income tax. After turning 65, you can withdraw funds for non-medical expenses without the penalty, but income tax will still apply.
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Transfer to another HSA: You can transfer your HSA to another HSA custodian of your choice. This is a trustee-to-trustee transfer and helps you maintain the tax-advantaged status of the account.
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Close the HSA: If none of the above options suit your needs, you can close the HSA. However, be aware of potential taxes and penalties if you withdraw funds for non-qualified expenses.
For answers to questions about HSA’s contact Fidelity HSA Service Specialist at 800.544.3716. Log into Fidelity NetBenefits at www.netbenefits.com/ using your existing username and password to access your account.
403(b) Retirement Savings Plans
If you participate in the 403(b) Retirement Savings Plan your participation will end on the day you terminate employment, or retire.
If you become ineligible for University matching contributions due to a change in your employment status the matching contributions will end, however you may continue to make pre-tax voluntary or post-tax Roth contributions. Your current deferral election will stay in effect. Updates to your deferral election are made on NetBenefits.
You are fully vested in all of your funds.
When you stop working for Brandeis University you generally have the following distribution options available from Fidelity Investments:
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Leave your retirement savings in your account for distribution at a later date
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Depending on your investment choices you may withdraw some or all of the money in your account
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Roll over some or all of your retirement savings to an individual retirement account (Rollover IRA)
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Move your eligible savings to a new employer’s plan (if allowed by new employer)
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Elect to receive an annuity
If you would like more information regarding your options and/or to request a distribution contact Fidelity Investments at 800.343.0860. Upon separation from service Brandeis Plan Sponsor Approval is not required.
For information on legacy retirement accounts with TIAA, contact TIAA at 888.488.3420 or access accounts at www.tiaa.org
You may want to consult a tax advisor prior to making your election.
You can find more information at the Brandeis Retirement Planning Website and Retirement Service Center. If you have any questions that cannot be answered by a Fidelity representative at the numbers listed above, contact Marianne Pick, Benefits Manager, at 781-736-4459.
Please note: If you receive a lump sum payment from Fidelity 20% will automatically be withheld toward the federal income taxes you will owe. If you are a resident of Massachusetts, state income taxes will also be withheld from the lump sum payment. Also, if you are under 59 1/2 at the time of the distribution, a 10% early withdrawal penalty may apply.
Life Insurance/AD&D Insurance
Your basic life and, if enrolled, supplemental life insurance coverage will end on the date you terminate employment, retire, or become ineligible due to a change in your employment status.
Within the 60 days following your termination of employment, you have two options to keep your life insurance coverage. First, you may be eligible to convert all or part of your current term life insurance under the Group Policy to an individual whole life policy. Second, you may be eligible to port all or part of your current term life insurance under the Group Policy in term insurance. These policies will be issued on the basis of your attained age and will not require medical examination. The insurance company must receive your completed application and a check for the full first premium payment within 60 days of your date of termination of insurance. If you are interested in conversion or portability contact Standard Insurance Company directly at 1-800-378-4668 to speak with a customer service representative.
Long Term Disability Insurance (LTD)
If enrolled, your coverage will end the date you terminate employment, retire or become ineligible due to a change in your employment status. Within the 31 days following your termination of employment, you may be eligible to convert all or part of your LTD insurance benefit. The insurance company must receive your completed application and a check for the full first premium payment within 31 days of your date of termination of insurance. If you are interested in conversion contact Standard Insurance Company directly at 1-800-378- 4668 to speak with a customer service representative.
Travel Accident Insurance Plan
Your Travel Accident insurance will end on the day you terminate employment or retire. There is no conversion option available under this plan.
Pre-tax MBTA Passes
If participating, your Pre-tax MBTA benefits will terminate at the end of the month.
Employee Assistance Program (EAP)
Your EAP benefits will terminate at the end of the month.
Employee/Dependent Education Benefits (Tuition Remission)
If participating, your Employee Education Benefits will end on the last day of the semester.
Employee Paid Time Off
No unused, accrued personal or sick time will be paid at time of termination. Only allowable accrued and carryover vacation time, as determined by the policy, will be paid at time of termination.