Benefits Upon Layoff

Following is a brief summary of your benefits upon layoff.

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Unemployment Insurance

Employees who are laid off are entitled to unemployment benefits provided they meet the criteria of "available and able to work." The actual amount is based on the employee's salary and number of dependents.

It is important to apply for unemployment benefits as soon as you are laid off. You can apply for unemployment benefits online at https://www.iowaworkforcedevelopment.gov/file-claim-unemployment-insurance-benefits  or you can go to your local Workforce Development Center. (Note: You save a considerable amount of time by applying online.)

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Vacation

Accrued vacation is paid out when you receive your final paycheck. If you return to state employment within two years following the date of layoff, your previous continuous service and the period of separation will be counted toward your vacation accrual rate.

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Compensatory Time

Any accumulated compensatory leave not taken will be paid out on the final paycheck.

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Sick Leave

Accrued sick leave is not paid out upon layoff. If you are reemployed by any state agency within one year (SPOC-covered) or two years (AFSCME-covered, non-contract, or UE/IUP-covered) following the date of layoff, your sick leave balance accrued prior to layoff will be restored, except to the extent that the sick leave hours have been credited to a sick leave bank.

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Health and Dental Insurance

Your current health and dental insurance plans will be in effect until the end of the month in which the layoff occurs. The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) provides for continuation of health benefits coverage after your coverage with the state ends. Information on COBRA continuation of health and/or dental insurance is available at the DAS COBRA website.

There may be other coverage options for you and your family to buy coverage through the Health Insurance Marketplace. In the marketplace you could be eligible for a new kind of tax credit that lowers your monthly premiums. Please visit HealthCare.gov for more information, including an online application for health insurance coverage and contract information for a Health Insurance Marketplace in your area.

If you are recalled, your coverage will be effective the first of the month following your recall hire date.

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Life Insurance

When you are laid off, your life insurance coverage ends at the end of the month in which layoff occurs. You can continue life insurance by either porting or converting your coverage. Information on continuing your life insurance coverage is at the DAS Continuing Life Insurance at Retirement or Termination website.

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AD&D Insurance Conversion

You can convert your AD&D coverage. Information on continuing your life insurance coverage is at the DAS Continuing Life Insurance at Retirement or Termination website.

If you are recalled within one year, you are eligible for reinstatement of life insurance in the same amount previously held, or you can make a new election. Your coverage will be effective the first of the month following your return to work.

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Long Term Disability Insurance

When you are laid off, long term disability insurance coverage ends at the end of the month in which layoff occurs. However, you can submit a claim for disabilities that began while your LTD coverage was in effect. There is no conversion provision for LTD insurance.    Continuing Coverage on LTD  website.

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Flexible Spending Accounts (FSA)

Health Flexible Spending Account

You may continue to seek reimbursement for eligible expenses incurred through the last day of the month in which your last payroll deduction is made. Otherwise, your coverage in the health care flexible spending account ceases unless you are eligible for and elect COBRA coverage, in which case you continue to make contributions (although on a post-tax basis) and can make claims for eligible expenses that arise during the period of COBRA coverage. If you are recalled within 30 days of your layoff date, you are automatically reinstated at the same annual election amount. If you are recalled more than 30 days after your layoff date, you are eligible to participate in the program and may make elect a new amount for the remainder of the calendar year.

Dependent Care Flexible Spending Account

You may continue to seek reimbursement for eligible expenses incurred through the date of your layoff. Your coverage in the dependent care flexible spending account ceases unless you meet certain eligibility requirements, such as are employed elsewhere or are actively seeking employment. If you are recalled within 30 days of your layoff date, you are automatically reinstated at the same annual election amount. If you are recalled more than 30 days after your layoff date, you are eligible to participate in the program and may elect a new amount for the remainder of the calendar year.

FSA Benefits After Leaving Employment website

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Deferred Compensation

Retirement Investors’ Club (RIC)

If you are separating from State employment due to termination or retirement, you can defer any amount of your final check, including your vacation payout, into a RIC 457 account. Once you have left employment, you have several options for managing your RIC account.

Deferring Your Final Leave Payouts 

Both new and existing RIC participants can choose to defer final wages, unused vacation pay (up to IRS maximum limits) or unused sick pay (up to $2,000- retirees only) into a RIC 457 account. Contributions can be made on a pre-tax basis, post-tax (Roth) basis, or a combination of both. 

Important Workday Instructions: If you wish to defer a portion of your final paycheck, do not make this election in Workday. Instead, you must complete the RIC Special Deduction Request Form and submit it directly to the RIC Team 2 to 3 weeks before your final day of employment. 

Options for Your Existing RIC Account Balance 

Upon leaving State employment, you can manage your existing RIC accounts in one of three ways: 

  • Maintain Your Account: Leave your funds in RIC to continue tax-deferred growth. Please note that you must begin taking Required Minimum Distributions (RMDs) by the IRS-mandated age. 

  • Request a Distribution: Set up total, partial, or systematic (periodic) payments from your account. 

  • Roll Over Your Funds: Move your RIC balance into an IRA, 401(k), 401(a), 457, 403(b), or 403(a) plan. Before rolling your funds out of RIC, please compare your RIC accounts (including investment offerings, fees, and services) to the offerings, fees, services and possible restrictions of the receiving accounts. 

Effect of Re-employment 

If you are rehired or recalled to State employment: 

  • You are immediately eligible to resume contributing to RIC. 

  • If you previously closed your accounts, you would need to open a new ones. 

How to Initiate a Distribution 

Before requesting a payment, please review the Special Tax Notice. Distribution steps depend on your current provider: 

Active Providers 

If your funds are with one of our active providers, contact them directly to request your payment: 

Corebridge Financial 800-945-6763 
Empower 833-999-IOWA (4692) 
Horace Mann 877-602-1861 
Voya  800-555-1970 

Inactive Providers 

If your funds are invested with a provider not listed above, you must complete the RIC Distribution Form  and return it directly to the RIC Team. Please also contact your provider to verify if they require their own internal paperwork to finalize the transfer. 

Additional information about distributions when leaving employment may be found on the Distributions & Changes webpage.

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IPERS

If you are a non-vested employee with less than 6 months of covered service at the time of layoff, you will receive a refund of your IPERS contributions.

If you are a non-vested employee with less than seven years of covered service, you may leave your IPERS contributions in the system. A refund may be requested at any time. Interest will be credited to your account until a distribution is made.

If you are an employee with seven or more years of covered service (or are 65 years of age or older while employed in an IPERS-covered job), you are a vested member of IPERS. Vested members are allowed to leave their contributions in the system until they apply for retirement benefits, or a refund may be requested at any time. Contributions left in the system earn interest until a distribution is made.

Please contact IPERS for additional information.

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Workers' Compensation

If you are receiving Workers' Compensation prior to a layoff, you will continue to receive this benefit until such time as you are released from a doctor's care. However, any vacation or sick leave that is supplementing a Workers' Compensation payment shall be discontinued upon layoff.

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Employee Assistance Program (EAP)

You are eligible to use EAP services for 30 days after layoff.   EAP Website

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Hawki and Other Services from the Department of Human Services

Hawki (Healthy and Well Kids in Iowa) is a health insurance program for children and teens, ages 0-19, whose parents do not have health insurance for them. You may qualify for this program for your children if you meet the eligibility and income guidelines. For more information and an application form, call 1-800-257-8563.

You may meet eligibility guidelines for other assistance programs. Please contact your local DHS office for information on food stamps, Medicaid, emergency assistance and other economic assistance.

If you have any questions, please contact your Human Resources Associate 

 

 

 

 

 

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