At separation of employment, there are some important steps for employees and supervisors to take, and many questions that may come up about final pay, benefits continuation, and other topics. Information on the following topics can be found on this page:
Resignation Process Steps:
- Provide notice to your supervisor, preferably at least two weeks (one month for management-level employees) before you anticipate ending your position.
- Your resignation may be submitted by a letter or email stating your resignation effective date, your last day of work, and the reason you are leaving your PSU position.
- If you are retiring, please see the section below about the retirement process.
- Coordinate with your supervisor to make a successful transition. Consider the following:
- What will be your last working day?
- Are there any documents, forms, surveys or accounts that require access transfer to someone else?
- Do you have any PSU property to return (uniforms, keys, equipment)?
- Contact Human Resources at firstname.lastname@example.org or 503.725.4926 if you would like to schedule an Exit Interview.
When you receive notice of an employee separating from the University, inform HR immediately. It is the department's responsibility to ensure the employee's final pay is issued correctly, accurately, and within statutory deadlines. The employee and department must submit and approve final leave in the online system, or paper timesheet so that HR can issue the employee's final paycheck. Incorrect final pay may result in BOLI fines and extra insurance charges to the department.
Separation Process Steps:
- Complete the Employee Separation Form.
- Send resignation letter/email or other reason for separation to Human Resources with the Employee Separation.
- As soon as you know an employee will be leaving PSU employment, coordinate with the employee and begin completing the Employee Exit Checklist.
- Final Pay: To ensure timely final pay, a final time sheet or leave roster must be received by Human Resources no later than 5:00pm one day prior to the employee's last day with the University.
- Visit the Final Pay section of our Wage & Hour webpage to ensure you are meeting the appropriate deadline.
Separation of Student Employees
Student employees are subject to the same legal requirements for final pay as listed in the Final Pay section of our Wage & Hour webpage. Email your HR Partner to inform us of their last day and immediately approve the final electronic time sheet so that final pay can be issued.
If the student employee has other positions on campus in Banner a final paycheck will not be issued. If not, the final pay will be issued within 48 hours and you will be advised when their pay is available. Inform HR if the student needs their pay by a certain date or time due to departure from this area.
PSU Computer Account (Odin) Access: The Office of Information Technologies strives to balance the need to allow access to Odin account resources after you have left the University with the need to expire accounts and delete data for those who are no longer affiliated with PSU. Currently, OIT's account expiration abides to the following guidelines.
Final Pay Process & Considerations
Visit the Final Pay section of our Wage & Hour page for final pay deadlines.
Time sheet or leave roster: To ensure timely final pay, a final time sheet or leave roster must be received in the Human Resources no later than 5:00 p.m. one day prior to the employee's last day with the University.
- Final pay will be issued as a check. The check may be picked up after 4:00 p.m. at the Cashier's Office in the lobby of Neuberger Hall on the last day of employment.
- If sufficient notice was provided, it may be requested that the check be mailed to the employee's home address on record with the HR department.
Vacation Leave: Remaining balances paid out on vacation leave are paid according to employee type as follows:
- Unclassified employees, including twelve-month faculty members (and others not represented by SEIU): Paid for earned, unused vacation leave up to a maximum balance of 180 hours.
- Classified employees (represented by SEIU): Paid for earned, unused vacation leave up to a maximum balance of 250 hours.
As required by the IRS, these payouts are subject to special tax withholding rates of 25 percent Federal, 9 percent State, 6.2 percent Social Security and 1.45 percent Medicare.
Compensatory Leave: Classified employees who are overtime-eligible are entitled to full payment of all earned, unused compensatory time.
Other Remaining Leave Accounts: Sick Leave, Personal Leave and Exchange Time balances are not paid upon separation. Employees' sick leave balance will be reinstated if rehired within 2 years of the effective date of separation.
Twelve-Month Payroll Redistribution Account Balances: The twelve-month redistribution account balance of nine-month faculty who chose to redistribute their pay over a twelve-month period will be paid upon separation.
Based on the circumstances of your separation from PSU, you may be eligible to receive benefits through the State of Oregon Employment Department. More information is available online through the State of Oregon Unemployment Insurance (UI) page. The Portland Metro UI Center can be reached by calling 503.451.2400 or 877.877.1781.
Note for full-time students: Student employees enrolled full-time (at least 12 credits for undergraduate students and 9 credits for graduate students) are not eligible to claim unemployment benefits from their school, college or university (ORS 657.030 and OAR 471-031-0105). You may still be eligible for these benefits through another employer. For questions on this or any other unemployment issue, visit the State of Oregon Unemployment Insurance page.
PSU appreciates your comments about the university as a workplace. If you would like to schedule an exit interview with Human Resources to share your experiences as an employee of PSU, please contact us at email@example.com or 503.725.4926.
Healthcare and Other Benefits
If you work at least 80 hours of the pay period in which your employment ends, your group insurance coverage will continue until the end of the following month. If you work less than 80 hours in the pay period in which your employment ends, your group insurance coverage will stop at the end of the month in which you separate employment. An exception to that rule is as follows: If you are enrolled in a Health Care Flexible Spending Account (FSA) and/or dependent care, then coverage of qualifying expenses will end at the end of the month for which payroll deducts your last contribution.
Medical, Dental, and Vision: Under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) covered employees and their dependents may be eligible to continue medical and/or dental coverage generally for a period of up to 18 months at the employees own expense. You will receive information about the COBRA program by mail to the home address we have on record from BenefitHelp Solutions(BHS).
Be sure to contact Human Resources before you leave PSU employment to ensure a COBRA packet is mailed to you. If you do not inform HR when your job ends, you may lose your eligibility for COBRA benefits.
You will have 60 days from the date on the notice from BHS to enroll in COBRA coverage. You will be required to pay the premiums plus an additional 2% administrative fee during the months you continue coverage. You must maintain a consistent, timely payment of insurance premiums in order for coverage to continue. For additional information, you may contact BenefitHelp Solutions. You can also find additional information and the COBRA rates on the PEBB website. Cobra rates are on the PEBB website under Medical Premium Rates.
Life Insurance: Continuation coverage is available for life insurance through portability and conversion options. Application for the portability and conversion options must be made directly to The Standard Insurance Company within 60 days after your employment termination date. Application forms are available from the PEBB website under Life & Disability Insurance section. For information about continuation coverage, contact the Standard at 800.378.4668 Ext 6785. The portability and conversion options are summarized below.
Portability Option: If you are separating for reasons other than total disability or retirement, you may continue or “port” your optional employee and spouse/domestic partner life insurance coverage (not the basic $5,000 or dependent life policies). Porting allows you to continue the group term life coverage available through the Standard at the same group rates plus a billing fee. Premiums may be adjusted annually based on your age.
Conversion Option: If separation of employment is due to a disability, you have the right to convert your basic life, optional life, spouse/domestic partner life and dependent life insurance to whole life insurance without evidence of insurability. You may also qualify for a lifetime premium waiver.
Minnesota Mutual: Covered employees under Minnesota Mutual life insurance benefits may continue coverage at the same rates by paying the company directly within 31 calendar days of the date the coverage ends. To continue this coverage, please call 1.800.252.5152. Employees who separate employment due to disability may be eligible for a premium waiver from Minnesota Mutual.
Short Term Disability (STD), Long Term Disability (LTD), Accidental Death & Dismemberment (AD&D) Insurance and PERS Disability Benefits: These policies do not offer continuation or conversion rights to separating employees. Please note: If you are separating your employment due to disability and you are a covered through this insurance, contact PSU Human Resources. In addition, if you are a PERS member and are separating due to disability, please contact PERS at 1.888.320.7377 as you may qualify for disability benefits as well as early retirement benefits.
Long Term Care Insurance: Employees who are participating in the Unum Long Term Care Insurance plan may convert the policy to an individual plan. This means that the same coverage you had while employed can be continued on a direct billed basis. Employees who wish to continue this coverage must request converted coverage within 60 days of the date the group coverage ends and pay premiums directly to Unum. To apply and begin premium payments or to get answers to other questions contact Unum at 1.800.227.4165. For additional information, see the Summary Plan Description. Or visit the Unum website.
Health Care Flexible Spending Accounts: Monthly amounts that have been deducted to fund the Health Care Flexible Spending Accounts (FSA) will stop at separation. Coverage of qualifying expenses will end at the end of the month for which payroll deducts your last contribution. You will have 90 days beyond the end of the calendar year to submit claims for reimbursement from your account. Any money left in your account(s) will be forfeited because of the IRS "Use It or Lose It" rule. If you have questions or concerns, please contact ASI Flex at firstname.lastname@example.org or 1-800-659-3035 or PEBB at 503-373-1102.
For information about continuing your Health Care Spending Account on an after-tax basis click here and refer to the section on COBRA or contact BenefitHelp Solutions at 1-800-822-3173.
Dependent Care Flexible Spending Account: Coverage of qualifying expenses for this account will be made for eligible expenses incurred in the month following termination of employment if the month is in the current plan (calendar) year and if you file a claim within 90 days after the date your employment terminates. Refer to Section 4 of the Summary Plan Description on the PEBB website for details. Or, you may contact ASI Flex at email@example.com or 1-800-659-3035.
Employee Assistance Plan: This University sponsored confidential counseling provides services in coping with this transition as well as other issues facing you, family members, and others living in your household. This program is available to benefits eligible employees while your benefits are in effect. You may contact Cascade Centers Inc. at 1-800-433-2320 or 503-639-3009. For more information please visit our Employee Assistance Program page.
If you are separating from PSU due to retirement, you may call PSU Benefits to schedule a meeting to discuss your retiree health plan options at 503.725.4926. You may also wish to refer to the Retirement Checklist.
Public Employees' Retirement System (PERS): For information about retiring as a PERS covered employee, contact PERS at 1.888.320.7377 and/or refer to the PERS web site. If planned retirement is within 90 days, an employee may sign up for a Retirement Application Assistance Session by visiting the PERS web site and scheduling an individual Retirement Application Assistance Session (RAAS) with a PERS counselor.
Optional Retirement Plan (ORP) - 401(a): Vested employees may leave employee and employer account funds in the ORP and the accounts will continue to realize investment gains or losses; or vested employees may choose to withdraw their employee and employer account balances. The Oregon Public Universities (OPU) Plan Administrator notifies the ORP companies of employees who have separated employment.
Non-vested employees forfeit the employer account, but may leave their employee account balance in the ORP, where it will continue to realize investment gains or losses; or they may withdraw the employee account balance. For more information about vesting and distributions upon termination, refer to the Oregon Public Universities (OPU) website.
Oregon Savings and Growth Plan: If you have been making payroll deductions for the Oregon Savings Growth Plan, contact the program coordinator at 1.800.365.8494. You may also find out more information about the Oregon Savings Growth Plan through the PERS website.
Tax-Deferred Investment (TDI) Plan - 403(b): Contributions to the TDI plan end when your pay ends. Contact your ORP Fund Sponsor regarding your distribution options. Before deciding whether or not to withdraw your funds from your accounts, you may wish to consult your tax adviser for information regarding tax implications and penalties.