Employees leaving the College should ensure that all details related to the exit process are completed well in advance of the last working day. Employees must clear through their own departments, the Business Office and the Human Resources Department before a final paycheck is released or a refund of retirement deposits is authorized.
Separating employees have the option of continuing the group health/dental coverage for up to 18 months after termination of employment. Employees have 60 days from the date of termination to apply for continuation coverage.
After the continuation period ends, a former employee has the option to convert to "non-group" coverage. The former employee must apply for "non group" coverage within 31 days after the expiration of group coverage.
Conversion of an employee’s life insurance coverage is available without medical examination. To convert the policy, an employee must complete the conversion application within 30 days from the last day of employment.
A terminating employee with State supported schools in Texas is eligible to request a refund of his/her retirement deposits by completing the Request for Refund (TRS 6). This form is to be submitted at the end of the month with the payroll report that contains the employee’s last deposit. The refund is normally mailed to the former employee within 60 to 90 days by the State Comptroller's Office. The taxable portion of the withdrawal may be subject to a 10% penalty under the early withdrawal rules of the Internal Revenue Code. With some exceptions, early withdrawal is before age 59½ years of age. Employees are encouraged to consult a tax advisor or the Internal Revenue Service for additional information.
Employees terminating employment in higher education in Texas may request that the College release his/her ORP account. An Optional Retirement Program Notice of Termination should be completed and forwarded to the Human Resources Department for certification. This form will be submitted at the end of the month to the employee’s designated carrier. ORP deposits have been tax sheltered and will be taxed the year in which the money is withdrawn.
There are no conversion privileges associated with the disability policy. The ending date of an employee’s group coverage is the employee’s last date of employment unless the employee is currently receiving benefits, in which case benefits continue as per the coverage.
Employees are strongly encouraged to maintain a current forwarding address on file in the Human Resources Department. The forwarding address is very important so that the annual W 2 form may be properly mailed.