Post-Employment Information

Employees who are ending employment with Carleton College should know that their elected benefit plans for themselves/their dependents have differing coverage end dates, they are as follows:

• End of the Month – Benefit coverage extends through the end of the month in which you are ending employment:
  • Medical Plan  – COBRA eligible
  • Dental Plan  – COBRA eligible
  • Vision Plan – COBRA eligible

• Last Day of Employment – Benefit coverage ends at the end of the business day on your last day of employment: 
  • Group Basic Life – COBRA eligible
  • Group Basic Accidental Death & Dismemberment 
  • Voluntary Life (employee, spouse/domestic partner and child life) – COBRA eligible
  • Voluntary Accidental Death & Dismemberment (employee or family coverage) 
  • Voluntary Long-Term Disability

NOTE: You will receive information about COBRA, which will allow you to continue eligible benefits, approximately 14 days following your ending date.

Employees must give a two-week (14-day) notice or more to be eligible for the following leave payouts:

• Annual Leave 50% of accrued balance – Exempt and Non-Exempt

Payouts will process on the employee’s final pay deposit less tax withholdings and deductions. Departing employees receiving leave payouts may wish to check with their personal financial advisors to see if changes in tax withholding (W-4s) are recommended. Any changes need to be effective within the pay period in which your final deposit is received. Instructions on how to change tax withholding can be referenced HERE.

NOTE: Any employee who is able to and chooses not return to work after a Personal Leave, as agreed upon, will be considered to have voluntarily resigned their position retroactively to their last day worked, are not eligible for time off payouts, and will be responsible for repaying the employer portion of the health insurance premium retroactively.

If you are leaving Carleton, you may be eligible to temporarily continue your healthcare and life insurance coverage through COBRA.

What to Expect Next

• COBRA benefits are administered by OptumHealth Financial Services.
• Delivery: This document will be sent via USPS to the home address you have listed in Workday. Please ensure your contact information is up to date before your final day.
• Timeline: Approximately 14 days after your employment end date, you will receive an official COBRA Continuation Notice.

Important Timeline & Payment Deadlines

• Election Window 60 days: Beneficiary has 60 days to elect coverage (starts from the later of the coverage loss date or the day the election notice is received).
• Initial Payment 45 days: Beneficiary has 45 days from the date of election to pay the first premium in full.
• Ongoing Payments Monthly: Following the initial payment, subsequent premiums are due monthly with a 30-day grace period.

⚠️ Important Note on Coverage Activation: Your elected COBRA coverage will not be officially reinstated until your first payment is received. Once payment is processed, your coverage will be retroactive to the effective date shown on your notice, ensuring no gap in your insurance.

COBRA Overview & Rules

• Cost: You are responsible for 102% of the premium (100% of the policy cost plus a 2% administrative fee).
• Flexibility: Participation is entirely voluntary, and coverage is managed on a month-to-month basis.
• Enrolling Dependents: * As the primary beneficiary, you can elect coverage on behalf of all eligible dependents who were covered the day before your last day of employment.
  • If you choose to decline coverage, your dependents still have the right to elect independent coverage by completing a separate COBRA Election Agreement.
• What Your Notice Will Include: Monthly costs per benefit, exact deadlines to elect, instructions on how to enroll, and payment options/due dates.

Benefit Plan Eligibility

Your eligibility to continue coverage depends on the specific benefit plan.

✅ Plans Eligible for COBRA Continuation

• Medical Insurance: Any dollars you have already spent toward your annual deductible or out-of-pocket maximum will carry forward within the same calendar year.
• Dental Insurance
• Vision Insurance
• Medical Flexible Spending Account (FSA): Eligible only if you have a remaining positive balance at the time your employment ends.
• Group Basic Life & Voluntary Life Insurance: Under Minnesota law, COBRA coverage is available for these plans and is often the most economical choice.
  • Note: You may also have conversion and portability options for your UNUM Life and AD&D plans. A Human Resources representative will provide these documents to you.

❌ Plans NOT Eligible for COBRA Continuation

The following plans cannot be continued under COBRA:

• Long-Term Disability (LTD)
• Group Basic & Voluntary Accidental Death and Dismemberment (AD&D)
• TIAA DC Retirement Plan
• Voluntary SRA and ROTH Retirement Plans
• Health Savings Account (HSA)
• Dependent Care Flexible Spending Account (FSA)

Alternative Insurance Options to Consider

Before enrolling in COBRA, you may want to explore other potentially lower-cost alternatives:

• A New Employer’s Plan: Check the enrollment windows if you are starting a new job.
• A Spouse or Domestic Partner’s Plan: Loss of coverage is a qualifying life event, allowing you to join their employer’s plan outside of standard open enrollment.
• MNsure (Minnesota’s Health Insurance Marketplace): You can shop for local plans and see if you qualify for tax credits. Visit the MNsure website or contact them directly for assistance at 651-539-2099 or 855-366-7863.

You are 100% vested in your plan(s) and will continue to be a TIAA customer.  Please contact TIAA at 800-842-2252 for any support requests. 

This is a bank account you own through Optum Bank; you can continue to utilize the funds that you have to pay for eligible medical, dental and vision expenses. 

You also have the option to roll this account into another HSA if you choose, you will need to work with OPTUM bank for this transition.

Reimbursement Deadline: April 30th of the following calendar year is the deadline for submitting your eligible expenses (expenses that were incurred on or before your term date) for reimbursement.

• Failure to submit by the deadline results in forfeiture of your remaining balance.
• Expenses for services rendered after your termination date are not eligible for reimbursement.