Support Staff
Effect of Leave/Termination/Death on Benefits
With Pay: During a leave of absence with pay or approved Family Medical Leave Act leave, employee contributions for optional benefit programs will continue to be deducted and the University will continue its regular contributions toward health plan coverage and the Base Retirement Program. Dental and Long-Term Disability coverage remains in force for those enrolled and eligible immediately prior to the leave.
Without Pay: Employees granted approved leave of absence without pay:
- May continue the health, dental, Optional Employee-Paid Life, and Accidental Death & Dismemberment programs by paying the full cost of the applicable premium. If coverages are not maintained, the employee may re-enroll within 31 days of returning to active employment or during the annual open enrollment.
- Individuals enrolled in the health plan waiver receive a prorated payment in July based on the number of months worked during the fiscal year (July 1-June 30).
- Employee contributions to Flexible Spending Accounts (FSA) are suspended during the leave and may restart upon return from leave. FSA claims incurred during the leave may be submitted upon return from leave.
- Basic Employer Paid Life insurance coverage remains in force up to 180 days from the last day of pay by the University.
Employees will receive a communication from MSU Human Resources outlining benefit options for the employee on a leave of absence without pay.
Effect of Termination on Benefits
In case of termination, benefit programs will be affected as follows:
- Optional Employee-Paid Life, and Accidental Death & Dismemberment coverages will continue in force until the end of the month following the month in which the last deduction and/or contribution is made toward these plans.
- In accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) if employment terminates, the employee is laid off, or the appointment is reduced to less than 50 percent, the employee may elect to continue health care and/or dental coverage for the employee, the employee's spouse, and/or dependent children for up to 18 months (29 months if disabled and receiving social security disability) by paying the premium and an administrative charge.
- Health care and dental coverage terminate at the end of the month employment terminates.
- Long-Term Disability, Basic Employer Paid Life, and Travel Accident insurance coverages cease on the last day of active employment.
- Optional Employee-Paid Life and Basic Employer Paid Life insurance coverages may be converted to an individual life insurance policy by contacting the carrier within 31 days of benefit termination.
Employees will receive a communication from MSU Human Resources outlining benefit options for the terminated employee.
Death
In the event of an employee's death, the following benefits may be available to designated beneficiaries:
- Optional Employee-Paid Life Insurance
- Basic Employer Paid Life Insurance
- Base and/or Supplemental Retirement death benefits
- Accidental Death and Dismemberment Insurance
- Travel Accident Insurance
Under COBRA, the spouse and/or dependent children of an active employee who has died may elect continued coverage for health care and/or dental coverage for up to 36 months by paying the premium and an administrative charge. For more information regarding coverage continuation, click here.