2024 Benefits Information For Exiting Employees
Annual and Sick Leave Balances
Annual leave will be paid to you in a lump sum, up to the maximum allowable for time of service. Any excess annual leave will be rolled over into sick leave hours. Remaining sick leave is banked if you return to employment with the State of Tennessee.
Annual leave is normally processed in the pay cycle following your last regular paycheck. If you do not see the annual leave directly deposited, please contact Sara Harper at 423-425-5743.
Note: Per HR policy HR0360, if you are reemployed with a state agency, the University of Tennessee, a Tennessee Locally Governed Institution or a Tennessee Board of Regents institution within 42 working days of termination from the university, your annual leave will be transferred or reinstated to the employing agency, and you will not be entitled to payment for annual leave.
Benefits Continuation
Exiting employees are responsible for contacting vendors for benefits continuation options.
GROUP INSURANCE PLANS
If a premium is deducted from your last paycheck, your insurance will cancel the last day of the next month. Example: Last paid date 06/30, insurance terminates 7/31. If you move out of the area, please contact the vendor for options to stay in network.
Continuation of Medical Insurance Through COBRA
The Division of Insurance Administration will notify you of the process for continuation of medical insurance through COBRA. To confirm eligibility, please call 800-253-9981 and ask for the COBRA representative for the State of TN.
Some insurance options may be converted to individual policies. Please contact vendors directly to review options, premiums, and convert policies.
Retirement
TAX DEFERRED INCOME PLANS
401k / Roth 401k / 457 / 403b
When you retire or separate from service:
- You may be eligible to leave your savings in your plan until the earlier of when you are ready to take distribution or turn age 70-1/2. At 70-1/2 your required minimum distributions may begin directly from your account.
- Your savings will remain invested as you choose. You may roll this account over to another IRA, 401(k) or 403(b). Please contact your provider for assistance with withdrawing or transferring funds and to review any tax penalties or rollover fees.
RETIREMENT PLANS
TCRS / ORP
Optional Retirement Program (ORP)
For employees who terminate employment prior to retirement, the following options are available under the Optional Retirement Program plan, including the JCRS plan (ORP benefits are vested immediately and may be started at any time after separation from service, regardless of age):
- If an employee transfers to another participating institution, membership and contributions may be continued at the new institution.
- All funds contributed by the University and, prior to July 1, 1981, by the employee, remain intact and continue to accrue interest and dividends until retirement. An exception may apply for employees who have separated from service and have less than $15,000 in total accumulations in the ORP; that means even if invested with one, two or three of the vendors, it is the total of all three vendors together. Depending upon ORP company regulations, such employees may be eligible for a lump sum distribution, a rollover to an Individual Retirement Account, or a rollover to another qualified retirement plan as specified in section 401(a) of the Internal Revenue Code.
Contact your retirement vendor for additional details and appropriate forms. Please note, if you choose to start withdrawing your ORP (401a) or 403b, or Hybrid retirement refund, contact the retirement provider. Employer signature is required, and please send paperwork directly to UT Knoxville:
Pam Quick
Payroll, Benefits, and Retirement Services
P115 Andy Holt Tower, Knoxville, TN 37996
Phone: 865-974-9977
Fax: 865-974-3530
Email: [email protected]
Tennessee Consolidated Retirement System (TCRS)
Employees enrolled in TCRS must accrue five years of creditable service to be vested and receive a service retirement benefit. All vested members may apply for reduced early retirement benefits at age fifty-five (55); or upon completion of 25 years of creditable service (additional reductions will apply for employees with less than 10 years of service); or members may apply for unreduced service retirement benefits at age sixty (60); or after completion of thirty (30) years of creditable service.
Termination of Employment Prior to Retirement for employees hired AFTER 7/1/2014:
You must contact TCRS directly to discuss your options: 800-922-7772
Termination of Employment Prior to Retirement for employees hired PRIOR TO 7/1/2014: The following options are available under the TCRS (State) plan:
- If an employee terminates and accepts employment with another state agency, membership and contributions are continued at the new agency.
- If an employee with service established before July 1, 1981, terminates, a lump sum payment of the member’s contributions paid by the employee, plus appropriate accumulated interest, maybe requested. An employee who has no service established prior to July 1, 1981, has no member account, and is therefore, not eligible for a refund.
- If an employee has vested service, funds may be left intact until a benefit is requested at retirement. Please apply for your retirement benefit through UTC Human Resources if you have not transferred it to another state agency to insure proper credit of sick leave balance to service time.
TCRS REFUNDS FOLLOWING TERMINATION: Upon separation from service, you may apply for a refund of your accumulated contributions and interest. Employer contributions to the defined benefit portion of the Hybrid Plan are not refundable. By obtaining a refund, you will give up your TCRS membership and all rights and benefits in the retirement system. Before a refund can be processed, you must file a completed Application for Refund with TCRS.
NOTE: Federal law requires TCRS to withhold federal income tax from all refunds issued to former members. The withholding rate is currently 20% of the taxable portion. If you arrange to have your refund transferred directly to an Individual Retirement Account, you may avoid having taxes withheld. Contact the state’s 401(k) third party administrator concerning options available in the defined contribution portion of the Hybrid Plan.
If you choose to file an Application for Refund, please send your completed form to [email protected]. It is advised that you not start this process until a month after your last paid date to ensure that all funds have been deposited into your TCRS account.
