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

Updated 12/15/2009

Applicable to:

  • Employees and their covered dependents when the employee separates employment due to layoff

Definition:

  • Layoff means a change in employment status due to an employer’s lack of funds or an employer’s organizational change

Relevant Rule:

  • The employer must inform an employee in writing whether or not he or she is eligible for benefits and the employer contribution whenever there is a change in work patterns such that the employee’s eligibility status changes. (WAC 182-12-113)
  • When an employee is no longer eligible for the employer contribution towards PEBB benefits due to layoff, insurance coverage may be continued by self-paying the full premium set by the HCA, with no contribution from the employer.. (WAC 182-12-133)
  • The employer contribution towards PEBB medical, dental, and life insurance will cease at 12:00 midnight, the last day of the month in which the employee is eligible for the employer contribution. (WAC 182-12-131)
  • Optional LTD 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. Long-Term Disability booklet.
  • Employees who return to another state agency position may be eligible for the employer contribution toward benefits with eight or more hours of pay status per month. (WAC 182-12-129 & WAC 182-12-131)
Employer must... ...no later than... ...or this will happen
Complete Worksheet C-7 Layoff 30 days after the date employment ends, or as soon as the employee’s end date is known Eligibility errors may occur and the employee will not receive the required notice and information about layoff provisions provided in the worksheet.
Terminate employee PEBB insurance coverage in PAY1 30 days after the date the employee lost eligibility for the employer contribution, or as soon as the employee’s end date is known The Continuation of Coverage Election Notice will be delayed, resulting in insurance coverage enrollment delays, and possible payment hardships
  • HCA will send the employee the Continuation of Coverage Election Notice packet in the mail after the employee’s insurance coverage has been terminated in PAY1. (This can take up to 14 days after insurance coverage has been terminated in PAY1).
Employees applying for LWOP must... ...no later than... ...or this will happen
Complete the PEBB Leave Without Pay (LWOP) Continuation Coverage Election form 60 days after the postmark date of the Continuation of Coverage Election Notice PEBB insurance coverage will end on the last day of the month in which the employeer lost eligibility for the employer contribution
Mail or hand-deliver the Leave Without Pay (LWOP) Continuation Coverage Election form to the PEBB program (address provided in packet) 60 days after 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 days after 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 days after the date coverage is elected Lose right to continue coverage

Additional Information

Employees who have... ...may... ...no later than
A spouse or WA state registered/qualified domestic partner also covered by PEBB benefits Enroll under the spouse or WA state registered/qualified domestic partners medical and or dental coverage as a dependent 60 days after the date the employee lost eligibility for the employer contribution
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 days after the date the employee lost eligibility for the employer contribution
A spouse or WA state registered/qualified Section 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 days after the date the employee lost eligibility for the employer contribution


Employees applying for PEBB retiree coverage must... ...no later than... ...or this will happen
Complete the PEBB Retiree Coverage Election form to enroll or defer coverage 60 days after 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 days after 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 days after 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

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 - When may a subscriber change health plans?
  • Html 182-08-200 - Employer contribution when changing agency employment
  • Html 182-12-113 - Obligations of state agency in employee eligibility
  • Html 182-12-129 - What happens when an employee changes positions due to layoff?
  • Html 182-12-131 - How eligible employees maintain the employer contribution toward insurance coverage
  • Html 182-12-133 - Options for continuing coverage eligible when on certain types of leave or Layoff?
  • Html 182-12-141 - Revert from an eligible position to an another position
  • Html 182-12-171 - Retiree eligibility

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