MSU Human Resources >> Layoff-resources >> Layoff Effect on Benefits

Layoff Effects on Benefits

Medical, Dental and Prescription Coverage*

If currently enrolled, the university will continue health and dental contributions through the end of the month of layoff.

*COBRA provisions will apply. Employees and /or covered dependents may elect to continue group health care coverage for a period of up to 18 months (29 months if disabled and receiving Social Security Disability) by paying the applicable premium plus an administrative fee. COBRA coverage must be elected in writing to MSU Human Resources by the eligible employee or dependent within 60 days of the latter of the date of COBRA Notice, or less of coverage.

Life Insurance

Expanded Life: Coverage ends 180 days from the last day paid.

Supplemented Employee-Paid Life: If enrolled, you will receive a premium notice indicating the payment required for continuation.

Accidental Death and Dismemberment: If enrolled, you will receive a premium notice indicating the payment required for continuation.

Retirement Plans

Your contributions and university contributions will end with your last paycheck.

Flexible Spending (Dependent Care and Health Care) Accounts

If enrolled, salary deduction will cease with your last paycheck.

Long Term Disability, Workers Compensation, Travel Accident

Coverage ends with the last day worked. Part-time employees are not eligible for Long Term Disability.

Educational Assistance

Full-time employees who have 12 continuous full time service months with the university may apply for the Educational Assistance Program. If eligible, laid off employees have extended access to the Educational Assistance Program for up to six months after the layoff effective date. Through this program, employees may access approved education programs, subject to annual limits, to enhance employability

For more detailed policies and application procedures, please see the Support Staff Educational Assistance Program Policy.

Course Fee Courtesy

If your spouse and/or dependent child(ren) are already enrolled at MSU using course fee courtesy, their eligibility will be extended for the upcoming full semester (fall, spring, summer) after the employee's layoff effective date.

For more detailed information, please review the Course Fee Courtesy Policy.

Vacation/Holiday/Personal/Sick Leave

Vacation, personal and sick leave accruals and holiday pay will stop while on layoff status. For Clerical-Technical Union employees, holiday pay is paid if the employee is receiving pay the day before and the day after a holiday while on layoff status.


Vacation time accrued as of the layoff date, will be paid out during the period immediately following the last day worked.

Personal time not used will not be paid while on layoff status.

Sick leave is not payable while on layoff, however, a portion of accrued sick leave is payable upon university retirement or termination in the following circumstances:

1. Employee meeting the university minimum retirement requirements upon retirement.

2. Employees who do not meet the university minimum retirement requirements, but have at least five years of service, and who have attained the age of 65 at the time of separation.

The amount of sick leave payable varies in each circumstance as specified in the current labor contract.


For additional information on how your benefits are affected by your layoff, please contact MSU HR at 517-353-4434 or email