University of California, Berkeley

DBCs & DHRMs: Procedures for Separating Employees

I. AVOIDING OVERPAYMENTS—TERMINATIONS
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) should be formally terminated using 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"). Please be sure to 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 (a termination reason code in this case would inadvertently cancel benefits).
  • 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 OVERPAYMENTS OCCUR
Departments are billed for overpayments of premiums when terminations are not recorded properly. Billing and adjustments pursuant to consolidated billing:

  1. Departments will be notified in advance by phone or email about retroactive charges.
  2. Charges will appear on the monthly PPP5302 Payroll Expense report.
  3. If the employee was paid from three different accounts with different percentages, the charges will automatically be split accordingly. If the system cannot find an account to be charged, then the charge will default to Payroll's Miscellaneous Account and will then be recharged to departments.
  4. Departments will be sent a copy of the consolidated billing reports upon request.
  5. Contact the Payroll Benefits desk:

    Phone Number: 642-1336 press 6
    Fax Number: 643-9339

II. BENEFITS INFORMATION & PROCEDURES

When an employee separates, the department is responsible for giving the employee appropriate information as well as meeting certain notification requirements. This includes career, contract, limited, and student employees.

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

  1. Appropriate Benefits Checklist: Give to the employee

Termination of Employment or Layoff checklists provide the employee with information as to what happens with each benefit when leaving the University. (Available on the web via At Your Service 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 the HR Benefits Unit (benefits@berkeley.edu or 642-7053).

  1. COBRA: The COBRA process has changed, effective May 1, 2009. The new COBRA forms and instructions can be found on the Benefits: COBRA website.
  1. Retirement and Savings Accounts Distribution Information
    Fidelity Retirement Services (formerly FITSCo) 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 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 to http://netbenefits.com.

    There is a separate distribution kit (which includes the distribution form) for non-exempt student employees, available on the web via At Your Service  (PDF) or from KP Supply House (#UBEN 200). Please note: Students need a copy of their separation documents in order to request a distribution.
     

  2. Unemployment Insurance Information
    In the case of layoff or dismissal, you must provide the employee with the EDD booklet explaining Unemployment Insurance  (PDF).

NOTES:

  1. Vested UCRP members and/or members with PERS Reciprocity (especially if over age 50) should be instructed to call the Human Resources Benefits Unit (642-7053) and speak with a retirement/savings counselor to review available options.
  2. If an employee is retiring and is continuing medical and dental coverage through UCRS as a retiree, complete the COBRA form for the vision plan only.
  3. 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.”
  4. Fidelity/Calvert/American Century/Credit Unions: Employees must contact the investment firm directly regarding options after separation.
  5. A+/California Casualty: Employees who are members and paying premiums through payroll deduction should contact A+/California Casualty directly to coordinate direct billing.

To Contact the HR Benefits Unit
Phone: 642-7053
Email: benefits@berkeley.edu