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Layoff/Reduction in Force (RIF)
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General Information and Requirements

Updated 5/12/2009

Applicable to:

  • Employees and their covered dependents when the employee separates employment through a formal layoff/reduction in force (RIF) procedure. Note: Each employer has its own layoff procedure. The phrases Layoff/RIF as used here are defined by each specific employer.

Relevant Rule:

  • When an employee separates employment due to layoff/reduction in force, the employee and their covered dependents are no longer eligible for PEBB employer provided benefits. (WAC 182-12-133)
  • PEBB medical, dental, and life insurance will cease at midnight, the last day of the month in which employment ends. (WAC 182-12-131)
  • Employees and their covered eligible dependents may continue benefits by applying for Leave Without Pay (LWOP). Benefits that may be continued include any combination of medical, dental, and life insurance; only employees on approved educational leave may continue long-term disability insurance. (WAC 182-12-133)
  • Basic long-term disability insurance ceases at midnight on the date employment ends. Optional coverage ceases at midnight, the last day of the month in which employment ends or the last day in which a required premium payment was made. (WAC 182-12-131)
  • Retiring employees may choose to elect PEBB-sponsored retiree coverage if eligible. (WAC 182-12-171)
  • Employees who return to employment with a previous employer or another PEBB affiliated employer may be eligible for the employer contribution toward benefits with eight or more hours of pay status per month. (WAC 182-08-190)
Employer must... ...within... ...or this will happen
Terminate employee PEBB benefits in PAY1 30 daysfrom the date employment ends, or as soon as the employee's end date is known The Continuation of Coverage Election Notice will be delayed, resulting in benefit enrollment delays, and possible payment hardships
  • HCA will send the employee the Continuation of Coverage Election Notice packet in the mail after the employee coverage has been terminated in PAY1. (This can take up to 14 days after benefits have been terminated in PAY1).
Employees applying for LWOP must... ...within... ...or this will happen
Complete the PEBB Leave Without Pay (LWOP) Continuation Coverage Election form 60 daysfrom the postmark date of the Continuation of Coverage Election Notice PEBB coverage will end on the last day of the month in which employer provided coverage was terminated
Mail or hand-deliver the Leave Without Pay (LWOP) Continuation Coverage Election form to the PEBB program (address provided in packet) 60 daysfrom the postmark date of the Continuation of Coverage Election Notice Lose right to continue coverage
Choose to continue any optional life coverage that was in force as an active employee and pay the premium 60 daysfrom the postmark date of the Continuation of Coverage Election Notice Coverage that was reduced or not self-paid will require re-applying and providing evidence of insurability when returning to work
Make first payment to HCA for continuation of coverage 45 daysafter the date coverage is elected Lose right to continue coverage

Additional Information

Employees who have... ...may... ...within
A spouse or qualified domestic partner also covered by PEBB benefits Enroll under the spouse or qualified domestic partners medical and or dental coverage as a dependent 60 daysfrom the date the employees employer provided coverage ends
A Flexible Spending Account (FSA) through ASI Apply for Continuation of Coverage through ASI to extend their period of coverage, so that they may claim expenses incurred after employment ends (see FSA/DCAP FAQ bullet below) 60 daysfrom the date the employees employer provided coverage ends
A spouse or qualified 152 domestic partner also covered by PEBB benefits Enroll in or change their election through ASI for a Flexible Spending Account (see FSA/DCAP FAQ bullet below) 60 daysfrom the date the employees employer provided coverage ends


Employees applying for PEBB retiree coverage must... ...within... ...or this will happen
Complete the PEBB Retiree Coverage Election form to enroll or defer coverage 60 daysfrom the postmark date of the Continuation of Coverage Election Notice Lose future right to enroll in PEBB retiree coverage
Mail, hand-deliver or fax the Retiree Coverage Election form to the PEBB program (deliver to the address provided in their packet or fax to 360 923-2608) 60 daysfrom the postmark date of the Continuation of Coverage Election Notice Lose future right to enroll in PEBB retiree coverage
Make the first full payment to HCA for continuation of coverage (if not electing pension deduction from Department of Retirement Systems) 45 daysafter the date coverage is elected Lose future right to enroll in PEBB retiree coverage

Guidance Resources

Forms

Rates

System Keying in PAY1

Common Questions and Issues

PEBB Knowledge Base - You may direct employees to the PEBB website (www.pebb.hca.wa.gov) search to view these and other commonly asked questions.

Perspay Knowledge Base:

WAC References and their general subject matter

  • Html 182-08-180 - Premium payments and refunds.
  • Html 182-08-190 - The employer contribution for all eligible employees
  • Html 182-08-198 - Changing health plans
  • Html 182-08-200 - Employer contribution when changing agency employment
  • Html 182-12-121 - Change in position or job and eligibility status
  • Html 182-12-131 - When does employer paid insurance coverage end?
  • Html 182-12-133 - Options for continuing coverage when no longer eligible
  • Html 182-12-141 - Revert from an eligible position to an ineligible position
  • Html 182-12-171 - Retiree eligibility

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