Separating Employees & Retirees

Please notify Human Resources at least 24 hours in advance of employee’s last day worked using the form below.

• Notice of Separation Form (Word)

Active Coverage

Health coverage will be active through the end of the month of your last day of employment. For example, if your last day of employment is June 15th, then the last day of health coverage will be June 30th. If premiums are not payroll deducted, the Employee Benefits Division will send a bill to your home address for the amount owed.

If you are transferring to another state of Maryland agency, then your health benefits will transfer. For transfers, please contact Human Resources.

Continuation of Coverage – After employment has ended

You may be eligible to enroll on COBRA to continue your health coverage. COBRA is available at full cost plus a 2% administrative fee. If you are interested in viewing the COBRA rates, please visit the Maryland Benefits website and select the “COBRA” rates. To enroll in COBRA, you will need to complete the “COBRA” enrollment form and submit it to the email address provided on the form. Once the enrollment is processed, the Department of Budget and Management, Employee Benefits Division, will mail you payment coupons. Payments are due on a monthly basis to continue coverage. You will have 60 days from your separation date to enroll in COBRA coverage.

Continuation of Coverage – For those retiring

In order for your employment separation to be considered a retirement from Salisbury University, you will need to file for retirement benefits under either the pension or Optional Retirement Plan (ORP) when leaving employment. Health Benefits eligibility and cost are determined by your years of service while participating in the pension or ORP. Rules for eligibility and cost can be found in the Benefits Guide. For information on applying for retirement and enrolling in health benefits, please refer to Applying for Retirement on this page.

Flexible Spending Accounts

For those enrolled in a Flexible Spending Account, you may submit expenses for purchases made on or before your last day of employment. Any remaining funds will be forfeited.

Life Insurance

If you would like to continue life insurance after leaving employment, please contact the insurance company within 30 days from your separation date to convert the policy to an individual policy.

Long Term Disability

Questions related to continuation of coverage should be directed to UNUM at (866)-762-8705.

Health Benefits Vendor Contact Information

Vendor contact information can be found on the Human Resources website

Transfer: If you are transferring to another state of Maryland agency, then your leave balances will transfer to the other state agency. Annual and holiday leave will be transferred to the new employing state agency, thus is not eligible for a payout. If you are transferring, please contact the SU Benefits Coordinator.

Sick leave upon retirement: If you are enrolled in the pension and retiring within 30 days of leaving employment, your sick leave balance will be credited to your monthly pension payment increasing the amount you receive each month. The ORP does not have this option. Sick leave for OPR participants will be inactivated. If you return to state of Maryland service within 3 years to a regular (PIN) position, then your sick leave will be reactivated.

Payout Information

Annual & Holiday Leave

For those who accrue annual and holiday leave, the remaining balance will be paid out with the final paycheck. If you would like to contribute some or all of the funds into a Supplemental Retirement Account, then please SU Benefits Coordinator.

Personal Leave

Personal leave is not eligible for payout.

Sick Leave

Sick leave is not eligible for payout. If you are leaving state service and return within 3 years to a position eligible for leave reinstatement, then your sick leave balance may be reactivated. Reactivation does not apply to those who have retired from the pension upon separation.

Pension

If you are vested in the pension, you may leave your funds with the pension and file for retirement at a later date.

If you are not vested or wish to withdrawal your contributions and interest (ending membership and waiving any future benefit), then you will need to complete an Application for Withdrawal of Accumulated Contributions Package. You can access the most up-to-date pension forms here.

* If your termination date is less than six months from the date you complete the Form 5, you must forward the form to your former employer. You should send to the attention of the SU Benefits Coordinator.

If your termination date is more than six months from the date you complete the Form 5, then you may send the form directly to the Maryland State Retirement Agency.

If you have questions about your pension, please contact the Maryland State Retirement Agency at 1-800-492-5909.

Optional Retirement Plan (ORP)

For those enrolled in the ORP, your funds are vested 100%. You may transfer your funds from the ORP or leave them with your current vendor. However, if you close your ORP account or exhaust the account balance, then you will forfeit any future retiree health benefits eligibility.

Supplemental Retirement Accounts (SRA)

SRA accounts are employee contributions accounts, for the most part. They include 401(k), 403(b), and 457(b). You may leave your accounts with the vendor or transfer them to another vendor. Any balance transfers will need to be coordinated with the vendors. After you leave state of Maryland employment completely, then you would be eligible to withdrawal the funds based on IRS regulations, if you wish.

Estimate your retirement benefit

We strongly encourage you to use the online benefit estimator to estimate your monthly benefit. Use this tool any time prior to retirement to assist in your financial planning. Just login into mySRPS. More information about mySRPS.

Members who are within 12 months of retirement can also send a request to SRA using the appropriate Application for an Estimate of Service Retirement Allowance available on the forms page.

Attend a pre-retirement seminar

Three years prior to retirement, it is recommended that you attend one of the State Retirement Agency’s pre-retirement seminars or online webinars. Click here for more information on seminars or online webinars.

Apply for any additional Service credit

Purchased service refers to service credit you may buy through direct payment to the Retirement Agency for specific types of previous employment. Only members who are on paid employment or a State Retirement Agency approved leave of absence may purchase service. Apply to purchase any eligible service by filing a Form 26: Request to Purchase Previous Service along with your request for an estimate.

Military Credit

You may be eligible to claim additional credit if you take an approved leave of absence or have served in the military. Apply for any eligible military credit by submitting a Form 43: Claim of Retirement Credit for Military Service.

Prepare your paperwork

Two months prior retirement, complete your final retirement paperwork along with a copy of your formal letter of retirement. You will need to submit a formal letter of retirement to your supervisor and the original retirement paperwork to the SU Benefits Coordinator.

Health Benefits (pension)

If sufficient funds are available from your monthly pension amount, then health benefits premiums will be directly deducted from your monthly pension check. If there are not enough funds, the Department of Budget and Management will bill you for the cost.

Steps for retirement:

• Submit a letter of retirement to your department.
• If you or any of those covered on your health insurance are Medicare eligible, then they will need to enroll in Medicare Parts A & B if they will not be enrolling in another employer sponsored plan. A form verifying credible coverage will be required by Medicare to avoid any penalties and to open a Special Enrollment Period.  The SU Benefits Coordinator will assist you with completing this form.
  • For anyone enrolled in the retiree health insurance and Medicare eligible, Medicare will be the primary insurance and the retiree coverage will be secondary.
• Complete a Retiree Health Benefits Enrollment Form and provide it to the SU Benefits Coordinator.
  • Provide any needed relationship documentation if you are adding a dependent who was not previously covered on the plan.
• The SU Benefits Coordinator will submit the Retiree Health Benefits Enrollment Form to the Employee Benefits Division (EBD) for processing.
• EBD will process the enrollment on the last file before the retirement date. The enrollment will not be processed in advance.
• The enrollment information will be sent to the health insurance vendors the week following the enrollment process.
• Cards will arrive after your retirement date. Cards will generally arrive 10-15 business days after the information has been sent to the vendors.

IRS Guidelines Regarding Reemployment

There can be significant consequences to you and the State Retirement and Pension System (SRPS) if you retire before the normal retirement age of your plan and/or before age 59 1/2, and are reemployed with the same employer without a bona fide separation of service. Please note that all units of Maryland state government, including the University System of Maryland, are considered one employer.

The IRS can impose a significant tax penalty on your income if you are under the age of 59 1/2, retire and begin receiving your monthly retirement benefits, and are reemployed by the same employer from whom you retired. In order to avoid this penalty, there must be a bona fide separation from service between you and your former employer.

If you retire before your normal retirement age, there are also serious IRS consequences to the SRPS if a bona fide separation does not take place following retirement and prior to reemployment with the same employer.

While the IRS has not specifically defined what constitutes a bona fide separation from service, it is clear that the greater the difference between your last job before retirement and the job being performed upon your reemployment, and the longer the break between the date of your retirement and the date of your reemployment, the more likely it is that there has been a bona fide separation of service. If you are reemployed to perform the same job, even if there is a reduction in your work schedule, this would not likely qualify as a bona fide separation of service unless there is a lengthy break in employment. Even arrangements where you are rehired as an “independent contractor” may not meet the IRS’ standard.

Maryland Law Regarding Reemployment

Maryland law requires that there must be a minimum of 45 DAYS between your retirement date and the date you are rehired by any employer that is a participating employer in the SRPS. This rule applies even if you retired from an employer that withdrew from the SRPS. All units of Maryland State government, including the University System of Maryland, are considered to be one employer under these reemployment rules.

Additionally, employment after retirement, under certain conditions, may cause your retirement allowance to be reduced.

Optional Retirement Plan (ORP)

You will need to contact your ORP Vendor to set-up a periodic distribution to begin the first of the month after you separate service from the State of Maryland. This distribution must continue in order to maintain eligibility for retiree health insurance.

Retiree health insurance eligibility and cost are determined by the number of years of employment while contributing into the ORP Plan. Contractual employment does not count toward health benefits eligibility unless you were enrolled in an ORP Plan. ORP health benefit rates.

Steps for retirement:

• Submit a letter of retirement to your department.
• If you or any of those covered on your insurance are Medicare eligible, then they will need to enroll in Medicare Parts A & B. A form verifying credible coverage will be required by Medicare to avoid any penalties and to open a Special Enrollment Period. The SU Benefits Coordinator will assist you with completing this form.
  • For anyone enrolled in the retiree health insurance and Medicare eligible, Medicare will be the primary insurance and the retiree coverage will be secondary.
• In coordination with the SU Benefits Coordinator, complete the ORP Verification Form (required for retiree health benefits enrollment).
• Complete a Retiree Health Benefits Enrollment Form and provide it to the SU Benefits Coordinator.
  • Provide any needed relationship documentation if you are adding a dependent who was not previously covered on the plan.
• Contact your ORP Vendor to set-up a periodic distribution.
  • Once the periodic distribution is set-up, the vendor will be able to complete their portion of the ORP Verification Form.
• The SU Benefits Coordinator will submit the retiree health benefits enrollment form and complete ORP Verification Form to the Employee Benefits Division (EBD) for processing.
  • EBD will process the enrollment on the last file before the retirement date. The enrollment will not be processed in advance.
  • The enrollment information will be sent to the health insurance vendors the week following the enrollment process.
  • Cards will arrive after your retirement date. Cards will generally arrive 10-15 business days after the information has been sent to the vendors.
  • Payment coupons will be mailed to your home address on the enrollment form.
    • The retiree is responsible for making the payments directly to Department of Budget and Management (DBM).
    • Payments are due on a monthly basis to DBM, but payments can be made for several months or the whole year at a time.
    • DBM accepts payments by mail with check or money order. Or you can submit your payment online using a credit or debit card.
    • For more information, please visit Maryland Benefits website and review the information under “Direct Pay Information.

Maryland Law Regarding Reemployment

Maryland law requires that there must be a minimum of 45 DAYS between your retirement date and the date you are rehired by any employer that is a participating employer in the State Retirement and Pension System (SRPS). This rule applies even if you retired from an employer that withdrew from the SRPS. All units of Maryland State government, including the University System of Maryland, are considered to be one employer under these reemployment rules.

State Retirement Agency
1-800-492-5909
http://www.sra.state.md.us/

Optional and Supplemental Retirement Plans
Fidelity Investments – https://nb.fidelity.com/public/nb/usm/home
1-800-343-0860
TIAA – tiaa.org/public/tcm/usmd
1-800-842-2252
Nationwide (MSRP) - https://www.marylanddc.com/
1-800-545-4730

Employee Benefits Division
1-800-307-8283
dbm.maryland.gov/benefits

IT Help Desk
410-677-5454
IT Help Desk website

Gull Card Office
410-543-6053
Gull Card website

Other Benefits (Tuition Remission)
Other Benefits (Tuition Remission)