DBCs & DHRMs: Separations

Unless a formal termination takes place, the employee remains in the employee database (EDB), resulting in overpaid premiums.

Only a formal termination creates a coverage ending date in the EDB. Since terminations are one of the most straightforward transactions, all employees terminating UC employment (including those with appointment ending dates and students) must be formally terminated in HCM. In addition to eliminating overpayments, there are many other reasons for formal termination (proof of termination for savings plan distributions, the ability to rehire an employee through HCM, and the "72-hour rule"). Use HCM to formally terminate ALL employees when they leave UC employment, regardless of whether or not they were eligible for benefits during their employment.

Reminders:

• If an employee is being transferred or rehired without a break in service, do not enter a termination reason code in HCM at the person level (a termination reason code in this case would inadvertently cancel benefits coverage!).
• From an HCM processing perspective, terminations occur at the job level. All actions are TERMINATION; it is the reason code that differentiates ending additional jobs vs. separation reason.
• If an employee has one or more jobs, the termination occurs (at the job level) as follows:
  • When it is one job, the action TERMINATION is coupled with a Reason code for leaving.
  • If an employee has multiple jobs (appointments), the HR Administrator must first take the action TERMINATION for all jobs other than the primary job; the Reason Code is "End Additional Jobs." Then the HR Administrator terminates the last job (Primary job) with the appropriate reason code for leaving UCB (such as took another job).

Questions about using HCM? Please contact the HCM Help Desk at 643-4443 or hrmshelp@berkeley.edu.

When an employee separates, the department is responsible for giving the employee appropriate information as well as meeting certain notification requirements. This includes all faculty, staff, and student appointments, not just career appointments.

It is crucial that employees receive this information in a timely manner so they can make informed benefits decisions within applicable deadlines.

1. Appropriate Benefits Checklist: Give to the employee.
   Termination of Employment or Indefinite Layoff checklists provide the employee with information as to what happens with each benefit when leaving the University. (See At Your Service's Checklists and Factsheets or order from KP Supply House.)

   Point out the conversion options for Life Insurance and AD&D insurance on the Benefits Checklist. If the employee is interested in conversion information, contact HR Benefits.

2. COBRA - See COBRA Information.
3. Retirement Savings Programs Distribution Information
   Fidelity Retirement Services is the University’s recordkeeping and account services provider for the UC Retirement Savings Program ( i.e., Defined Contribution Plan Regular and Safe Harbor, Tax-Deferred 403(b) Plan, and 457(b) Deferred Compensation Plan). To learn about your options or request a distribution, contact Fidelity at 1-866-682-7787, press 0, Monday through Friday between 5:00 A.M. and 9:00 P.M., PT. Or go online.
4. Unemployment Insurance Information
   In the case of layoff or dismissal, you must provide the employee with the EDD booklet (PDF) explaining Unemployment Insurance (Publication #DE2320).

NOTES:

1. Vested UCRP members and/or members with PERS Reciprocity (especially if over age 50) should be instructed to contact the HR Benefits Retirement Team at retire@berkeley.edu or (510) 643-7149 to review available options.
2. Employees should update their beneficiaries if they are retiring or becoming an inactive member. Go to At Your Service, choose “Your Benefits Online” then under “Your Money” select “View Your Beneficiaries.”
3. Credit Unions: Employees must contact the credit union directly regarding options after separation.
4. A+/California Casualty: Employees who are members and paying premiums through payroll deduction should contact A+/California Casualty directly to coordinate direct billing.