Am I required to sign a Severance Agreement?
In order to receive the incentive payment and benefits outlined for you in your early retirement program package, you will be required to sign a Severance Agreement and adhere to the deadlines outlined in your materials.
Do I need to get my agreement notarized?
No, a notary signature is not required on your Severance Agreement. You may have it notarized if you wish, but it is fully enforceable without the notary signature.
Will I be paid for my unused vacation?
Yes, you will receive payment for your full vacation accrual for 2019, plus any carryover from 2018, less any vacation days taken prior to the date of your retirement. This payment will be made on or after your last paycheck, in accordance with the vacation policy.
When do my benefits end?
Dental and Vision benefits end the last day of the month in which your employment with DePaul University terminates. Medical benefits may be continued through the Retiree Medical Program, if you are eligible and elect to enroll in the Retiree Medical coverage. View Understanding DePaul’s Retiree Medical Plan
for retiree medical eligibility. All other benefits end the day your employment terminates. There may be options available to convert certain benefit options. Refer to your individual Early Retirement Incentive Program materials and the Retiree and COBRA sections of the Human Resources website for additional information, go.depaul.edu/benefits
How can I continue to receive health benefits (medical, dental, vision) after I leave DePaul?
Medical benefits may be continued through the Retiree Medical Program if you are eligible for the program and enrolled in a DePaul medical plan when you retire. View Understanding DePaul’s Retiree Medical Plan
for retiree medical eligibility. An additional option available is the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which provides you with the ability to continue your health benefits (medical, dental, vision and health care flexible spending account) for up to 18 months. COBRA information, including how and when to enroll, will be sent to your home address within four weeks of your last day of employment. For additional questions related to the Retiree Medical Program, contact DePaul’s Benefits Department at 312.362.8232 or email@example.com
What happens to my contributions in the 403(b) retirement plan?
If you are enrolled in the 403(b) Plan, your elected contributions and match will be taken on your final regular paycheck. All employee contributions and university match are fully vested. Upon termination from the University, if your 403(b) Plan balance is over $1,000, you may leave the balance invested in the plan, or you may request a distribution. Contact your fund sponsor (Fidelity and/or TIAA) directly to review your account balance and discuss your distribution options.
What should I do if I have an outstanding 403(b) loan?
Employees who terminate from the University and have an outstanding loan balance will continue to be responsible for making loan payments. Payments will continue uninterrupted via the method and frequency the employee established with the fund sponsor. Outstanding loan balances can be fully repaid at any time with no penalties. Any prepayments will reduce the dollar amount of the future payments, but not the number of payments due. Employees with outstanding loan balances should contact Fidelity or TIAA if they have further questions.
Can I still access my DePaul email?
Access to your email will end as of your last day of employment, unless you request continued access to your DePaul email account as a retiree. You can elect to continue email access on the Retiree Benefits Enrollment Form, which you will receive with your separation package.
Can I apply for Unemployment?
Retirees may be ineligible for unemployment compensation due to: 1) the voluntary nature of the program, 2) the provision of the early retirement plan incentive, and 3) access or withdrawal of 403(b) retirement plan savings.
Am I eligible for rehire with DePaul if I elect the Early Retirement Program?
There should be no assumption that retirees will be able to return to a part-time position at DePaul after retiring under the Early Retirement Incentive Program. After a 6 month break in service, staff members who retire under the Early Retirement Program, may be considered for re-employment by DePaul University in an adjunct faculty position if they have previously been employed by the university in that capacity. Pay will be offered at the normal adjunct rates.
Rehire decisions will be made by the Dean with permission of the Provost on a case-by-case basis, and will depend on the College/Department’s needs and the individual’s qualifications.
However, you may not return to employment in:
- A full-time staff position
- A part-time staff position
- A temporary position
- A consulting position
- A student employee position
All retirees must adhere to a waiting period before returning to teach and their teaching schedule must be managed to preserve their retiree medical eligibility before any consideration can be given to the re-employment of a retiree. If a retiree would like to accept a part-time teaching position, s/he should consult with a tax or legal advisor to ensure that qualified plan distribution rules are not violated and that there are no impediments to taking a distribution from the 403(b) plan. S/he should also consult with human resources to ensure that s/he will not jeopardize retiree medical eligibility.
How will I be taxed on my Incentive Payment?
Your incentive payment (including any unaccrued vacation) is taxable at the supplemental income tax rate. Supplemental wages generally have a flat rate of 22% withheld for federal tax and 4.95% for Illinois state tax (if applicable). The payment may also have Social Security and Medicare taxes withheld, depending on your income level and in accordance with withholding required by law and the University’s normal payroll procedures. Please consult your tax advisor to discuss the tax implications for your specific circumstances and situation.
How is my Incentive Payment calculated?
The Incentive Payment is calculated using gross wages as reported in Box 5 of your 2018 W-2. Box 5 reflects Medicare Wages and Tips, and includes taxable earnings plus taxable benefits, minus pre-tax deductions other than 403(b) deferrals.
When should I apply for Medicare?
- PART A – Hospitalization: You should apply for Medicare Part A 60-90 days prior to reaching age 65, regardless of whether you are retiring or still working.
- PART B – Medical Services: You should apply for Medicare Part B 60-90 days prior to retirement, if you will be age 65 at the time you retire.
- PART D – Prescriptions: If you are enrolled in a DePaul medical plan (active or retired), you should NOT apply for Part D.
Will my current medical coverage change if I elect this Early Retirement Incentive Program?
If you are under 65, you may continue PPO or HMO coverage as a retiree. Any CDHP participants will elect the PPO or HMO. Your covered dependents and spouse/SDA may also continue PPO or HMO coverage (depending on which plan you elect) as long as they are eligible and under age 65.
If you are age 65 or over, you may continue HMO coverage, but if you are enrolled in the PPO or CDHP, you will elect either the MAPD or the HMO. Any covered dependents and spouse/SDA who are Medicare eligible will be enrolled in MAPD or HMO (depending on which plan you elect), as long as they are eligible.
What happens to my Dental and Vision benefits if I retire?
Your Dental and Vision benefits will end on June 30, 2019. You may elect to
continue these benefits under the COBRA program, by paying monthly premiums to
WageWorks. Visit the Retiree Benefits Transition
page for more details. You may choose to purchase your own coverage on the open market, and there are many carriers that offer individual vision and dental insurance plans.
Can I use the same doctors and medical facilities under the MAPD?
Under the MAPD, any medical provider or physician who accepts Medicare assignment
will accept DePaul’s MAPD insurance It is important to note that DePaul’s MAPD plan is a custom group plan. It is not an individual Medicare Advantage policy
. This is an important distinction in terms of your access to services so please present your DePaul MAPD BCBS ID card when seeking medical services. To determine if a doctor accepts Medicare, visit www.medicare.gov
or call BCBS’s MAPD customer service Monday-Sunday, 8am-8pm: 1-877-299-1009.