RIF and Your Benefits
Click here for more information regarding the State Health Plan provisions for RIF and health coverage.
If termination from employment is on or after the 15th of the month, NC Flex benefits will be effective through the last day of the month in which employment ends; otherwise, benefits end on the last day of the month before the termination date. For example, with a termination date of April 17th, NCFlex benefits are effective through April 30th. With a separation date of April 5th, NCFlex benefits are effective through the end of the previous month, or March 31st.
After coverage ends, the plan vendors will send out COBRA offers to your home address that allow you to continue coverage for up to 18 months. You simply enroll and pay the vendor directly. The cost is your current coverage cost plus 2%.
MetLife, Supplemental Disability, Long-Term Care, and Hyatt Legal Plans
The same termination rules apply to these plans that apply to the NCFlex Benefits coverage (see above). Long Term Care and the Hyatt Legal Plan can be continued directly with the vendors. The MetLife Group Term Life plan offers conversion and portability options. Contact your NCSU Benefits Consultant for more information.
Teachers' and State Employees' Retirement System (TSERS)
You have the option of leaving contributions in the Retirement System and maintaining all of the earned creditable service as of the date of separation. If electing to leave contributions in the retirement system, you may be eligible to retire at a later date provided you have the required years of creditable service in the retirement system. In the Teachers’ and State Employees’ Retirement System, you become vested once you have five years (10 years if you became a member on or after 8/1/11) of membership service.
Withdrawal or rollover or contributions (and interest, if vested) are options; however, a withdrawal of contributions or rollover will result in losing accumulated service credit, the death benefit and Disability Income Plan eligibility. If returning to NC state government service in the future, new vesting rules will apply. At the point of withdrawal, state and federal taxes are assessed, as well as a 20% penalty if you are under the age of 59 1/2. Taxes and penalties are avoided if the account is rolled over to a qualified plan.
If a withdrawal or rollover is processed and you return to NC state government service at a later date, previously withdrawn accounts can be purchased after contributing to TSERS for 10 years. Furthermore, a return to service within 5 years of the termination date results in a reinstatement of the employee's sick leave balance.
A Form 5-Application for Refund of Retirement Contributions is required for withdrawal or rollover. If the withdrawal/ rollover request is being made within 3 months of the termination date, return the notarized original to the University Benefits Office for processing; otherwise, the form may be sent directly to TSERS, at the address on top of the form.
Unused annual leave balances up to 240 hours are paid out either with the final pay or the month following. If an employee had over 240 hours of annual leave at the time of reduction in force, the excess leave shall be reinstated when reemployed with a State of North Carolina agency within one year. All unused bonus leave hours are paid out as well (does not include "special leave"). Only mandatory retirement system contributions (TSERS or ORP) will be deducted from the leave balance payouts.
Sick leave balances are not paid out; however, if returning to a State of North Carolina agency within 5 years of reduction in force, the accumulated balance can be reinstated.