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Separating from the CSU

We will be sorry to see you go, but plans change and we wish you well! Listed below are some important items and information to think about when leaving the University.

Continuation of Health Coverage

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted into law on April 7, 1986, and applies to the California State University through the Public Health Service Act. Generally, COBRA permits covered individuals who lose coverage under the plan(s) as a result of certain “qualifying events” to elect to continue their coverage under the plan(s) for a prescribed period of time on a self-pay basis, for up to 18, 29 or 36 months, depending on the qualifying event.

If as an active employee, you have been covered by a health plan, your benefits coverage will likely continue through the month of separation or loss of benefits eligibility and the month following.  A COBRA Qualifying Event Election Notice will be sent to your mailing address upon your separation or loss of benefits eligibility, the date your benefits will end will be included. This notice contains information regarding continuing coverage through COBRA, COBRA rates, and the election form you will need to complete should you decide to elect COBRA.

The individual pays 102% of the monthly premium or 150% of the monthly premium for a COBRA extension due to disability. View the 2018 COBRA Premium Rate Chart for current COBRA rates.

Retirement Accounts

If you have contributions from your pay taken for retirement, you have a couple of options. An employee with CalPERS funds on file is able to leave their funds with CalPERS, request a refund or roll the funds over to another retirement account. Information about your options may be found at https://www.calpers.ca.gov/page/active-members/retirement-benefits/refunds-reciprocity.

Employees who are (or were) in the Part-Time, Seasonal, and Temporary Retirement Program (PST) can find out about a refund or rollover of the funds at https://www.savingsplusnow.com/iApp/tcm/savingsplusnow/about/pst/pst.jsp.

Vacation Balance

When you leave employment, you have the option to request tax deferral of your lump sum vacation payout to your current 401(k), 457 or 403(b) account(s). You are eligible to transfer up to the maximum contribution limit to each account, minus the amount you have already contributed for the plan.

If your separation date is on or after November 1, you have the option to make the transfer for the current and following tax year, up to the maximum annual contribution limits.

Individuals considering this option should contact the Payroll Manager, Alison Christensen at alchristensen@csuchico.edu prior to your separation. Generally, this option must be exercised at least 30 days prior to separation from the University.

Sick Leave Balance

Your sick leave balance will not be paid out. You have the option of donating up to 40 hours of sick leave or vacation under the Catastrophic Leave Donation Program. Please stop by the Human Resources Service Center, Kendall Hall 220 to donate hours to fellow employees in need.

Address Update

Visit the Human Resources Service Center, Kendall Hall 220 to ensure your address is up-to-date. Health insurance documents as well as your annual W-2 statement will be sent to the address on record. If you have any questions, the Service Center can be reached at 530-898-6771.

Need More Information?

For more information about the separation process and your responsibilities, go to the Separating Employee web page or contact Employment Services at 530-898-4664.

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