Benefits Information for Employees Exempt from Civil Service With or Without a Right of Return to Civil
Service Employment
--and--
Career Executive Assignment (CEA) Employees With or Without a Right of Return
to Civil Service Employment
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November 2003
- Introduction
This brochure contains benefits information designed to help exempt and CEA employees terminated from their positions as a result of a change in administration. There are two completely different sections in this brochure. One is for employees with a right of return to a Civil Service position (Section II). The other (Section III) is for employees with no right of return to a Civil Service position. Be sure to use the correct section that applies to you. Ask for Personnel Office assistance or assistance from other parties listed in the brochure, as necessary and appropriate. Help is also available on other issues. Contact Personnel Office staff or staff from the State Personnel Board (SPB), Department of Personnel Administration (DPA) or the Public Employees' Retirement System (CalPERS), as necessary and appropriate.
- Employees with Right of Return to a Civil Service Position
Benefit Information for Exempt Employees and Career Executive Assignment (CEA) Employees with Right of Return to Civil Service Employment. For most exempt or CEA employees returning to a Civil Service position, your payroll deduction for each benefit will continue without interruption.
Benefits administered by the Department of Personnel Administration include: Employee Assistance (EAP), FlexElect, Vision Services, Legal Services, Term Life Insurance, Long-term Disability (LTD) and Dental. Coverage is continuous and no employee action is required. In relatively rare circumstances (e.g. returning to a rank-and-file position), the designation of the new position may not render the former exempt or CEA eligible for certain benefits.
The benefits that have different provisions for rank-and-file employees are: 1) Term Life Insurance; 2) Long-Term Disability (LTD); and 3) Dental Benefits. This is because only excluded employees are eligibly for life insurance, LTD, and the enhanced dental benefit.
If you are an exempt or CEA employee returning to a rank-and-file position, eligibility for certain benefits will change. You should contact your Personnel Office staff for assistance as special enrollment or follow up actions may be necessary. The information below is designed to give you general information and provide a basic understanding of the options available.
- Legal Services -
If you have a right of return to a civil service rank-and-file position, you are eligible to participate in the State's Group Legal Service Insurance program.
However, if you are in the process of receiving benefits under the plan at the time you lose eligibility, services under the plan will continue on that specific legal matter subject according to the provisions of the Legal Services Agreement.
- Group Term Life Insurance -
If you are no longer eligible for Term Life Insurance by virtue of a management initiated change (e.g. termination of exempt or CEA assignment with a right of return to a rank-and-file position), special provisions apply which enable you to maintain basic insurance coverage levels (i.e., $50,000 or $25,000 coverage) for an additional twelve months. The department initiating the termination is required to pay premiums for the twelve-month period directly to Metropolitan Life Insurance Company (MetLife). You should contact the Personnel Office to ensure that appropriate action is taken to continue coverage. At the end of the twelve-month period when the employer-paid basic coverage terminates, you have the option to covert to an individual policy. Rates quoted for individual policies are generally higher than under the group plan because they are based on an individual policy schedule.
If you are no longer eligible for Term Life Insurance as a result of a right of return to a rank-and-file position, you are allowed to retain any supplemental life insurance coverage previously purchased and the payrolldeduction will continue unless you cancel.
- Long-Term Disability (LTD) -
If you are no longer eligible for LTD, you may continue the LTD plan through the direct pay program for up to 24 months. In order to do this; you must send DPA a written request to be enrolled in the program within 31 days of the date they lose eligibility based on changing positions.
After completing 24 months of direct pay, you may convert LTD coverage to an individual policy. To do this, you must contact DPA by phone or in writing to request the conversion package within 31 days of the termination date. Rates quoted for individual policies are generally higher than under the group plan because you are based on an individual policy schedule.
The contact person for LTD issues is Susan Wong, Benefits Division, 1515 S Street, North Building, Suite 400, Sacramento, Ca 95814, (916) 324-0533.
- Dental Benefits -
If you are no longer eligible for the enhanced dental benefit, basic plan coverage will be provided and the payroll deduction will continue without interruption. However, we suggest that you get a copy of the plan brochure to note the changes in benefit levels for both yourself and dependents which can result in higher employee costs for some services.
- Benefit Information for Former Employees exempt from Civil Service With No Right of Return to Civil Service Employment and Career Executive Assignment (CEA) Employees with No Right of Return to Civil Service Employment.
- Vision Services
Separation or Retirement - Upon separation or retirement, employees may elect to continue their vision coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). This Federal law provides that coverage can be maintained temporarily at the employee's expense. You must pay the normal monthly premium plus a 2% administration fee to the carrier for up to 18 months. Personnel Offices will provide COBRA information and instructions.
Long-Term Disability (LTD)
Separation - If you separate from State service you may convert your LTD plan to an individual policy provided you meet the eligibility criteria. You must contact DPA by phone or in writing within 31 days of the termination. The contact person for LTD issues is Susan Wong, Benefits Division, 1515 S Street, North building, Suite 400, Sacramento, Ca 95814, (916) 324-0533.
Retirement - There is no LTD conversion privilege when employees retire.
Group Term Life Insurance
Separation - If you separate from State service, you may convert both the basic and/or supplemental coverage to an individual policy within 31 days. Contact MetLife directly at (800) 252-8524.
Retirement - You may continue the basic and supplemental coverage at your own expense. Contact MetLife 30 days prior to retirement to make arrangements. The amount of basic and supplemental life insurance benefits will reduce by 50% and the premium will be adjusted on the first of the month of your 65th birthday.
Metropolitan Life insurance Company can be reached at State of California Administration, 425 Market Street, # 970, San Francisco, CA, 94105, (800) 252-8524.
FlexElect
Separation - If you separate or retire during the FlexElect Plan Year and are enrolled in a Medical Reimbursement Account you may continue to make contributions under COBRA through the end of the plan year.
If you continue to contribute to the Medical Reimbursement Account under COBRA, you may continue to submit claims for reimbursement of medical expenses incurred after the date of separation. COBRA contributions are not pretaxed as you no longer have a monthly income to reduce your tax liability. Therefore, there are no tax savings under COBRA after separation. Based on this, employees electing to continue under COBRA are allowed to decrease their monthly contribution amount. If employees choose NOT to continue enrollment under COBRA, the pretaxed funds they have already contributed to their MRA will only be available for reimbursement of eligible expenses incurred before the separation or retirement.
COBRA is not required for employees who separate or retire during the FlexElect Plan Year and are enrolled in a Dependent Care Reimbursement Account.
The current Reimbursement Account Enrollment Authorization (STD. 701R) is used as the COBRA Continuation Enrollment Form. You may obtain a copy of this form from your personnel office. The completed form is sent directly to DPA/Benefits Division for processing. The address is DPA, Benefits Division, 1515 S Street, North Building, Suite 400, Sacramento, Ca 95814.
Legal Services
You may not convert coverage to an individual policy when you lose eligibility. However, if you are in the process of receiving benefits under the plan at the time you lose eligibility, services under the plan will continue on that specific legal matter subject to the provisions of the Legal Services Agreement.
Employee Assistance Program (EAP)
There is no conversion option available for EAP benefits. However, if you are using State EAP services at the time that Civil Service employment is terminated, you may continue counseling through the EAP until your prescribed sessions are exhausted or until referral is made to other resources outside the EAP. Also if you are laid off as a result of budget reduction measures you are entitled to a six-month extension of time through EAP.
Dental Benefit - CEA with no right of return
Separation - If you are separating from State service and not planning to retire you may continue dental benefits under COBRA. The normal monthly premium plus a 2% administrative charge is paid to the company for up to 18 months. Personnel Offices will provide COBRA information and instructions.
Retirement - Dental benefits can be continued into retirement provided you retire within 120 days of separation from State service. If dental benefits are continued into retirement under these conditions, you will pay up to 100% of the employer contribution paid for an active employee, based on your credited years of service. At retirement, if you are enrolled in the enhanced Delta Dental plan you must change your PERS dental enrollment to the basic plan.
Dental Benefit Continuation - Exempt employee no right of return
Dental plan provisions are unique for exempt employees with no right of return to the Civil Service. If you are an exempt employee you are permitted to continue in the group dental plan when separation from State service occurs more than 120 days before normal retirement under certain conditions. See your Personnel Office for more information. The following sections provide general information about this benefit.
- Eligibility Requirements
- Conditions differ depending on age at time of separation
Member age 40 or older; or age 45 or older if a member of the Second Tier Retirement Plan - If you are an exempt employee with less than ten years from attaining minimum retirement age in your retirement plan (minimum age is either age 50 or 55 depending on plan tier), you may elect to continue coverage by paying the employee contribution. The election must be made within 60 days of separation. This coverage may continue until you retire. At the time of retirement, you are permitted to continue coverage into retirement and receive the employer contribution towards such coverage. If you elect to continue coverage and subsequently discontinue payment of premium, you will be permitted at the time of retirement to reenroll in the plan and receive the employer contribution towards such coverage.
Member under age 40; or age 45 if a member of the Second Tier Retirement Plan - If you are an exempt employee and more than ten years from attaining minimum retirement age in your retirement plan tier (minimum age is either age 50 or 55 depending on plan tier), you may elect to continue coverage in the dental plan by paying both the member and employer contribution plus a 2% administrative fee. The election must be made within 60 days of separation. If coverage is to be continued until retirement, upon retirement you may continue coverage and then receive the employer contribution towards such coverage at that time.
- Procedures must be followed if you are electing to continue dental benefits at the time of separation as described above
Indemnity Plan or DPA Plan (Delta Dental) - If you are enrolled in Delta Dental, you should complete form "Delta 602A." The following should be written across the top of each form, "Based on Section 22816.7 of the Government Code". This form can be obtained from Delta Dental's Marketing Administration by calling (415) 972-8300. The enrollment form and initial premium payment should be sent to the California Public Employees' Retirement System (CalPERS) for verification of eligibility.
CalPERS will forward the enrollment form and initial payment to Delta for processing. Premiums must be paid quarterly. After the initial enrollment premiums are sent directly to Delta, due by the first day of the month that the quarter begins (January, April, July and October). Non-payment for two consecutive quarters will automatically disqualify the enrollee from this program. To ensure that your quarterly premiums are credited properly you should write your Social Security number and group number (Delta Premier 9949-8601 or Delta Preferred Option 9946-8601 as applicable) on their payment check.
Pre-Paid Plans (Health Net Dental, PMI, and Safeguard) - If you are enrolled in Health Net Dental, PMI, or Safeguard, you should complete the "Dental Plan Direct Payment Authorization (STD. 696)." This form is available from your personnel office. The following statement should be written across the top of each form, "Based on Section 22816.7 of the Government Code". Your enrollment form and initial premium payment (premium information is available from your personnel office) should be sent to the Department of Personnel Administration, Dental Program, Benefits Division, 1515 S Street, North Building, Suite 400, Sacramento, CA 95814. DPA will forward your enrollment form and initial payment to the dental carrier for processing. The premiums must be paid monthly and by the first day of each month. After the initial enrollment, you will need to send subsequent premiums directly to the carrier. Non-payment for two consecutive months will automatically disqualify you from this program. To ensure that premiums are credited properly you should write your Social Security number and "state exempt employee" on your payment check.
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