Benefits Status Change When You TERMINATE Your CMU Employment

If your employment terminates, for whatever reason, you need to know what happens to your benefits.

Medical/Prescription Drugs, Dental, and Vision Plans

Medical/prescription drug, dental and vision coverage ends on the date that you terminate employment with CMU. This applies to all employee groups except fixed term faculty and regular faculty. Fixed-term faculty (1/2 time or more) and Regular faculty members should refer to the Benefits in Brief for actual termination date. Medical/prescription drug, dental and vision claims will be paid as set forth by the plans through the date of termination.

COBRA Continuation Coverage

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law that allows you to continue coverage at your own cost for up to 18 months. Following your termination, COBRA enrollment materials will be sent to your last known home address. Update your address with the university prior to your employment end date.  For further details, visit www.cmich.edu/fas/hr/HRBenefitsandWellness/Pages/COBRA.aspx.

Life Insurance & Disability Plans

Employee and dependent life insurance/AD&D and disability coverage ends on the date that you terminate employment with CMU. This applies to all employee groups except fixed term faculty and regular faculty members. Fixed-Term faculty (1/2 time or more) and Regular faculty members should refer to the Benefits in Brief for termination date of benefits.  

You may be able to convert or port your coverage.  An application and premium must be filed and received by the insurance company’s conversion & portability administrator within 31 days from the date of termination.

Flexible Spending Accounts

If you are enrolled in the Health Flexible Spending Account (FSA), your contributions will cease and eligible expenses incurred up through the date of termination will be available for reimbursement. Claims must be received by the FSA administrator within 90 calendar days following termination of employment. Please note:  You may be entitled to elect COBRA under the Health FSA and receive reimbursement for eligible expenses incurred after your termination but only if you continue to make the required FSA COBRA premium payment using after-tax money. However, you generally do not have the right to elect COBRA continuation coverage if the cost of COBRA for the remainder of the plan year equals or is more than the amount left in your FSA.

If you are enrolled in the Dependent Care FSA, your contributions will cease but eligible expenses incurred through the date of termination are eligible for reimbursement.  Any expenses incurred after the date of termination will not be eligible for reimbursement from the account. Payment of claims will be based on the balance in the account.  Reimbursement requests for eligible expenses must be received by the FSA administrator within 90 calendar days following termination of employment.

Retirement and Tax Deferred Investment Plans

Since contributions are based on salary paid to you, university contributions to the basic retirement plan (if applicable) and your contributions to the tax deferred investment plan (if applicable) will cease on the date of termination.  The money invested in the retirement investment plans remain invested until you become eligible to withdraw the money. 

**Read: Guide for Qualifying Status Change Events before filing a Status Change Request form.

This summary is not designed to serve as your reference for the details of these benefits. The CMU Choices Flexible Benefit Plan – Plan Document and Summary Plan Description is available online and contains detailed information about the plan, including important details about limitations on benefits and your legal rights. The actual provisions of each benefit plan will govern if there is any inconsistency between this summary and Central Michigan University's formal plans or contracts. This summary does not constitute a contract for any benefit.

Other changes you may need to make:

Continue health coverage on all or part of your current benefits through COBRA.