The information provides guidance on benefits for employees at UAMS who are leaving their benefits-eligible position for various reasons such as retirement, reducing hours, or working for another employer.
Medical & Dental Insurance
Your coverage will end at 11:59 p.m. on your last day to be employed in a benefits eligible position by UAMS.
Your medical and dental coverage will automatically end when you leave UAMS’ employment. Medical and Dental Coverage ends on your last day to be an active employee in Workday in a benefits eligible position. If you don’t work through the end of the pay period, your last premium will be a reduced, prorated amount. For example, if you are paid monthly and your last day is June 15, the deduction from your June check should be half the normal amount.
Vision Insurance
Your coverage will end at 11:59 p.m. on the last day of the month in which your employment terminates with UAMS.
Your vision coverage will automatically end when you leave UAMS employment. Vision Coverage ends on the last day of the month in which your employment ends in Workday.
COBRA
Under a federal law called “COBRA” you and/or your eligible family members may be eligible to continue coverage for up to 18 months.
Your cost for COBRA coverage is 102% of the premium. That includes the amount you were paying by payroll deduction, plus the portion UAMS was paying, plus a 2% administrative fee. COBRA rates are listed on the last page.
After your last day we will notify UMR, our COBRA administrator, to send you a letter advising you of your COBRA continuation rights. You will have 60 days from the date of UMR’s letter to elect coverage. Then you have 45 days to make your first payment and 30 days to pay subsequent premiums to UMR.
Once you make your first COBRA payment, your coverage will be reinstated retroactively so that there is no gap in your coverage.
If you are age 65 or older, contact our office to find out how your COBRA medical coverage would coordinate with Medicare. You will need to sign up for Medicare Parts A and B if you haven’t done so already, as Medicare would become your primary coverage.
If you are retiring from UAMS you may be eligible to continue medical, dental and vision coverage as a “UA retiree” instead of COBRA. If at the time of your retirement your age plus years of continuous UA service equal 70 or more, and you have been continuously employed and covered by the UA plans for the last 10 consecutive years, you may be eligible for retiree benefits. You would also be eligible if you are age 65 or older, have at least 5 years of UA service, and have been covered under the UA plans for the last 5 consecutive years. Please contact our office at (501) 686-5650 to schedule an appointment so that we may discuss your benefit options with you.
If you elect coverage at your new job, be mindful of the effective date. Most employers have a waiting period before coverage takes effect. For that reason, you may need to elect COBRA coverage to cover the gap between the time you leave UAMS and your new coverage begins.
If you have a pre-existing health condition, ask your new employer or their medical insurance carrier how expenses will be covered. It is likely they will be covered, as this is a requirement of the Affordable Care Act – but still a good idea to ask.
The COBRA notice you will receive from UMR will provide dates you were covered under medical. You should keep this in case your new employer requests verification. Should you need additional verification, your employer may contact our office at (501) 686-5650.
Life Insurance (Basic, Optional & Dependent)
Your coverage will end on your last day to be employed by UAMS or the final day you are in a benefits eligible position.
Your group life insurance coverage — Basic Life, Dependent Life, and Optional Life –automatically ends when you leave UAMS or transfer to a non-benefits eligible position.
You have a 60-day window to continue this coverage as a private policy. There are two options. One is “portability” coverage if you and your dependents do not have a medical condition that has a material effect on life expectancy — in other words, you are in good health. The second is “conversion” coverage. Conversion premiums are higher because you don’t have to provide evidence of good health.
You should receive a letter from Standard Insurance Company within a week or two after your last day that offers this opportunity. If not, download the form here.
Critical Illness, Hospital Indemnity & Accident Insurance
Your coverage will end on at 11:59 p.m. on the last day of the month in which your employment terminates with UAMS or you are no longer in a benefits eligible position.
Your Critical Illness, Indemnity Plan and Accident insurance policies automatically end when you leave UAMS or transfer to a non-benefits eligible position. You have a 31-day window to continue or “port” these policies to a private policy. The forms to apply are available on the UA System Benefits website. UnitedHealthcare, the carrier, must receive this form and your first premium payment in the mail within one month of your last day.
Hospital Indemnity Request for Portability Form
Accident Insurance Request for Portability Form
Critical Illness Request for Portability Form
Short Term Disability Insurance (STD) and Accidental Death and Dismemberment Insurance (AD&D)
Your coverage will end on your last day to be employed by UAMS or the final day you are in a benefits eligible position.
Your Short Term Disability and AD&D insurance coverage automatically ends when you leave UAMS or transfer to a non-benefits eligible position. There is no option to continue coverage under a private policy.
Long Term Disability (LTD)
Your coverage will end on your last day to be employed by UAMS or the final day you are in a benefits eligible position.
Your LTD coverage automatically ends when you leave UAMS or transfer to a non-benefits eligible position. At that time you may be eligible to convert to an individual policy. Your eligibility to do so would be based upon several factors which are described in the summary plan description which is posted on the UA System website.
You have a 31-day window to convert to an individual policy. You should receive a letter from Standard Insurance Company within a week or two after your last day that offers this opportunity. If not, download the form here.
Flexible Spending Accounts (FSA)
If you participate in an FSA, your deduction ends on your last regular paycheck from UAMS. You may incur expenses through your termination date. You have until 3/31 the following plan year to file claims.
Members who are eligible for the Flex Cobra will have the carryover funds available as well as their election amount to utilize on eligible expenses they
will incur while active on Cobra. If a member terminates employment after the new plan year starts. They are eligible to spend down the carryover
funds for expenses incurred while still active in the plan. Please be aware that the $550 rollover benefit
does not apply to your health care flexible spending account once your employment ends.
Health Savings Account (HSA)
Contributions automatically stop with your last regular paycheck.
If you were a participant of the HSP medical plan, your HSA spending account will remain active and open as long as you do not request for it to be closed. The account can be tied to a future employer or you can use or save funds in the account.
UA Retirement Plan
Contributions automatically stop with your last regular paycheck.
Options for University of Arkansas Retirement Plan benefits are outlined below. If you are a member of an alternative State retirement plan, APERS or ARTRS, you will need to contact that office for information. We can provide those phone numbers if you need them.
You are entitled to UA retirement benefits if you are “vested” and UAMS made retirement contributions on your behalf. Of course, any money you personally contributed to your retirement plan is always 100% vested and available to you.
You are vested in UAMS’s employer contributions if you completed 24 full months of continuous, benefits-eligible employment.
If you are retiring and are vested, you have several payout options. Because these options can be complex and your retirement plan is in your name, you will need to contact your fund sponsor to discuss your individual circumstances.
TIAA 1-800-842-2252
Fidelity 1-800-642-7131
You generally have three options if you are not retiring:
# 1: You may leave your money in your account(s) if over $5000. You don’t forfeit any of the vested benefits that have already been set aside for you by UAMS. You will still benefit from continuing growth of these funds based on dividends, interest rates, and market experience. By leaving the money in your account, you preserve it for its intent – retirement income.
If your account balance is less than $5000, you will be given the opportunity to take a distribution. If you do not elect this, your vested account will be transferred from the UA plan to an IRA at an appointed time by the Systems Office.
# 2: You may be eligible to rollover all or a portion of your UA retirement account into your new employer’s 403(b) or 401(k) plan, or into an IRA. If the rollover is direct to another plan — in other words, you don’t touch the money — there is no IRS penalty. However, if you have the distribution paid to you — in other words, “cash out” your plan– then there will be a mandatory 20% IRS tax withholding and possible penalties. If you are considering rolling over your UA accumulations to another retirement plan, we encourage you to carefully compare the return rates of both plans.
# 3: You may choose to receive a “distribution” under any of the available options available through TIAA or Fidelity. It is important to contact your fund sponsor, TIAA or Fidelity, before cashing out your retirement plan. Depending on your personal situation – for example, your age, work status and your spouse’s work – taxation could seriously diminish the value of your benefits. There will be a mandatory 20% IRS tax withholding from cash payouts. You may be subject to an additional 10% penalty if you are less than age 59½. There may also be limitations depending on where you invested your money. For example, amounts over $2000 in some TIAA accounts cannot be pulled out all at once, but instead over a 7 to 10-year period.
Before “cashing out” or getting a distribution from your retirement plan, we recommend you first contact TIAA or Fidelity and ask for a projection of what your account balance might be if you left the money there until age 65, or any other age you anticipate retiring. You may be surprised at how much your account can grow, simply through the magic of compounded interest.
Withdrawal requests to cash out any money from your retirement plan may require Employer Authorization through our office. After you complete your portion of the forms, you may:
- Mail them to UAMS Division of People and Culture at 4301 W. Markham, Box #564, Little Rock, AR 72205;
- Deliver them to our office, Monday through Friday from 7:30 a.m. until 4:30 p.m. Call (501) 686-5650 for directions to our office;
- Email to AskHR@uams.edu; or
- Fax to our office at (501) 686-5386. However, please note that some forms require original signature and cannot be faxed.
Several individuals in our office are authorized to sign-off on TIAA and Fidelity forms. Forms will be processed on a first-come, first served basis. We will be happy to return the completed forms to you, forward them to the fund sponsor, or call you when they are ready to be picked up. Often times the UAMS Division of People and Culture office can approve your distribution requests online via the plan sponsor’s online portal.
Important: If you wish to make a withdrawal, transfer funds, or cash out your retirement account, we recommend you first contact your fund sponsor (TIAA or Fidelity) to discuss your options. If you decide to take action on your TIAA or Fidelity retirement account, there is a 31 day waiting period from your termination date before funds will be released to you.
Leave Benefits, Optional Benefits, Misc..
Legal Shield Policy
This policy ends at the end of the month in which you terminate from UAMS or transfer to a non benefits eligible position. Please reach out to Legal Shield directly at 1.800.654.7757 if you wish to extend your policy.
ID Watchdog Policy
This policy ends at the end of the month in which you terminate from UAMS or transfer to a non benefits eligible position. Please reach out to ID Watchdog directly at 1.866.513.1518 if you wish to extend your policy.
Auto and Home Insurance
Please reach out to Farmers Insurance directly if you have questions about your policy. They can be reached at 800.974.6755.
Vacation / Holiday Leave
You will be paid for your vacation and holiday leave balance on a separate check after you leave UAMS. The maximum payout is 240 hours (30 days).
Once you complete the required clearance process, Payroll will process your terminal vacation payout. This process takes about two weeks once the clearance process is finalized. The check will be directly deposited to your bank account.
If your vacation/annual leave is paid out, you will not be able to return to University employment until the number of days for which you received vacation/annual leave compensation has expired. Employees rehired or transferring to another State agency or institution may transfer all accrued annual leave. Please refer to UAMS Administrative Guide 4.6.04.
Sick Leave
There is no provision for payment of sick leave upon separation of UAMS.
W-2
Your W-2 form will be mailed to your home address next January. If you move, please call our office at (501) 686-5650 or email AskHR@uams.edu to provide your new address.
Credit Union
Deductions stop with your last paycheck. However, you can retain your membership in the UARK Federal Credit Union even though you may no longer work for the University of Arkansas.