Leaving the U of M

When you leave your job with the University, your benefits will end. In most cases, you have the option to continue medical, dental, life insurance, and EAP coverage at your own cost

If you are retiring from the University, you may have specific considerations and steps to take. Learn more on the Preparing for Retirement webpage.

Under certain circumstances, you may be eligible and receive a layoff severance or non-renewal, in which case you need to decide whether or not to participate in the programs. If that happens, you can learn more on the Benefits for Layoff Severance & Non-Renewal Programs page.

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Access to University Technology

Visit the Office of Information Technology’s Leaving the University guide for information on how long you’ll have access to email, MyU, and other University technology. The guide also includes instructions on how to handle your digital and physical University assets.

Remember to email important contacts with updated contact information. You may also consider setting up a vacation reply stating where you can be reached.

Tips to Avoid Lost Pay Statements, W-2s, and Parking Charges

  • Update your personal information in MyU. This will allow mail such as W-2 forms to reach you. You may also want to print copies of previous pay statements or W-2s before you lose access to MyU (as outlined above).
  • Cancel your parking contract. Your parking contract does not automatically stop. You will be billed until you contact Parking and Transportation Services to cancel your contract.

How Leaving the U of M Impacts Your Benefits

Questions about your benefit options? Call the Contact Center at 612-624-8647 or 800-756-2363 or email benefits@umn.edu.

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When Benefits Coverage Ends

Your medical, dental, and life insurance coverage ends on the last day of the month in which you actively worked in a benefits-eligible position. Disability coverage ends the day after your last day of employment in a benefits-eligible position.

Federal and state laws allow you to continue your medical, dental, life insurance, and EAP coverage at your own cost. This continuation of coverage becomes effective following the last day of your group coverage. If you wait up to 60 days before applying, you may experience a gap in coverage due to the cancellation of benefits.

Flexible Spending Accounts

Health Care FSA

Your FSA participation stops after your last day of employment. This means you will no longer be able to incur expenses. You have 90 days after your last day of employment to file any claims incurred prior to your termination date.

If you still have money in your FSA, and you don’t have enough eligible expenses before termination to use up the balance, you can avoid losing the money if you elect to continue participation through COBRA.

Dependent Care FSA

Contributions to your Dependent Care FSA end with your last paycheck. This means you will no longer be able to incur expenses after your last day of employment. If you have a remaining balance, your grace period is March 31 of the following year to submit claims for dates of service prior to your last day of employment.

Life Insurance

When you leave the university, you could be eligible to continue and/or convert your life insurance coverage without answering health questions or requiring a doctor's exam. Here is an overview of what life insurance options are available to you when you leave the University (PDF).

Retirement Savings Plans

Contact your plan provider(s) to discuss any impacts that leaving the University has on your pension plan or retirement accounts.

Faculty Retirement Plan

On your last day of employment, the University stops additional contributions to the faculty retirement plan. At that time, you will have a number of decisions to make about your retirement account. You will receive information about the options available from Fidelity.

Unused Vacation and Sick Time

Each employee group has its own policy for paying out unused vacation hours. However, employees in any employee group are not paid for unused sick leave or unused Earned Sick and Safe Time when they leave the University.

Vacation time that is paid out to an employee will be taxed. This pay cannot be tax-sheltered by investing it directly into a retirement account.

AFSCME Clerical or Technical

An employee who leaves the University is entitled to be paid for accumulated, unused vacation.

AFSCME Health Care

An employee who leaves the University or who gives notice of voluntary termination of at least two weeks, is entitled to be paid for accumulated, unused vacation.

Civil Service

Civil service staff who leave the University with 10 or more years of continuous service and more than 200 hours of accrued vacation have their payout deposited into an individual, tax-free account called the Health Care Savings Plan (HCSP). Money in the HCSP can be used to reimburse eligible medical expenses.

Employees who leave University employment with fewer years of service or hours of remaining vacation are entitled to be paid for unused, accrued vacation.

Faculty and P&A

When the employee terminates University employment, unused vacation days up to a maximum of 176 hours are paid out, provided the employee has worked 67 to 100 percent time in an eligible position for at least eleven months and has not been terminated for cause. If the employee has not worked the required time or has been terminated for cause, the employee’s unused vacation will not vest, and the employee will have no right to payout of any vacation balance.

Teamsters

An employee who voluntarily resigns will receive pay for unused, accumulated vacation.

However, employees who leave the University with 10 or more years of service in the bargaining unit and 80 hours or more of accrued vacation will have their payout deposited into an individual, tax-free account called the Health Care Savings Plan, to be used to reimburse eligible medical expenses.

Both scenarios above are contingent on the employee submitting a written notice of resignation to the assigned supervisor at least two calendar weeks prior to the effective date of resignation.

9- or 10-Month Appointments

Paychecks

Leaving the University could have implications for your paychecks. Refer to the Special Pay Circumstances webpage for more information.

Benefits

If you do not return to work in the fall, your benefits will retroactively end backdated to May 31. You will be sent COBRA materials, which you can use to enroll in University benefits for up to 18 months at full cost. If coverage is ended backdated to May 31, any medical and/or dental visits over the summer months would be reprocessed and you will be responsible for the full cost of the services.

If you are eligible for Medicare, contact Social Security Administration at 800-772-1213 or at a Social Security location to discuss impacts. If you are retiring, you may also want to review the Preparing for Retirement page for other information on retirement.

Retirement Accounts

No contributions are made to the Faculty Retirement Plan (FRP), Optional Retirement Plan (ORP), and 457 Deferred Compensation Plan on pay dates following the last day of employment.

Minnesota State Retirement System (MSRS) contributions are made for eligible earnings on pay dates following the last day of employment. Eligible earnings do not include vacation payout or severance payments.