4.0.4 Benefits at Termination

Policy Section: Termination

Policy Number and Title: 4.0.4 Benefits at Termination
Applicable to: All Regular Employees
Effective Date: October 15, 2003

Policy Description

All regular employees who terminate employment with the University receive information regarding flexible spending accounts, medical, dental and vision from the University’s third party administrator.

Application of This Policy

In general, benefits for regular employees who are terminating are as follows:
 
Vacation: Payment at the employee's regular rate for all unused accrued vacation days up to a maximum of 30 days. Employees participating in the Paid Time Off program are compensated within the guidelines of that program.
 
Life Insurance: (Basic Group Term Life and Supplemental Term Life). Coverage ends on the date of termination. Option for conversion to individual policy is available within 31 days of termination.
 
Health Insurance: Regular coverage ceases the last day of the month in which termination occurs. Option to continue University group coverage according to the Consolidated Omnibus Budget Reconciliation Act (COBRA) is available. Option for conversion to nongroup individual policy is also available when COBRA period ceases.
 
Retirement Benefit: Princeton University Retirement Plan (TIAA-CREF) — Contributions cease on the date of termination.
 
Benefit Expense Accounts: Employee contributions to expense accounts cease as of the date of termination. Expenses incurred after the date of termination will not be eligible for reimbursement. Claims for eligible expenses may be filed until the end of March of the calendar year following the date of termination. Employees may also elect to continue their Health Benefit Expense Account (HBEA) under COBRA by making post-tax contributions.
 
Long Term Disability Insurance:  Coverage ceases on the date of termination. Former employees may file for coverage within 12 months of the termination date if the disability began prior to termination. Proof must be shown that the employee could not have reasonably filed prior to termination.
 
Short Term Disability: Coverage ceases at termination. Former employee remains eligible to apply for benefits if a disability begins within 14 days of the date of termination.
 
Children's Educational Assistance
Tuition grant: No further disbursements are made as of the date of termination.
 
Base Loan: No further loan disbursements are made as of the date of termination. Loans are due immediately. Arrangements for repayment are made through the Loan Section, Office of the Treasurer.
 
Supplemental Loan: No further loan disbursements are made as of the date of termination. Loans are due immediately. Arrangements for repayment are made through the Loan Section, Office of the Treasurer.
 
Staff Educational Assistance: No further grants are made as of the date of termination. Tuition reimbursement applies only to courses which are completed prior to termination.
 
Probationary Employees
Vacation: Probationary employees except those participating in the Paid Time Off program, do not accrue vacation during the probationary period.  
 
Life Insurance : Same as regular employees.
 
Health Insurance: Same as regular employees.
 
Benefit Expense Accounts: Same as regular employees.
 
Short-term Disability: Same as regular employees.
 
Staff Educational Assistance: Same as regular employees.
 
The status of Long Term Disability, Children's Educational Assistance, Retirement Plan credits or contributions at termination do not affect probationary employees since these benefits normally have eligibility requirements of service of one year or more.
 
Additional information on benefits can also be obtained in the employee handbook Working at Princeton, the Summary Plan Descriptions for each benefit plan or by calling the Benefits Team, Office of Human Resources.

Related Documents

Contacts

Benefits Team
(609) 258 - 3302