COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 2002-41

November 25, 2002

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers, Chief Administrative and Fiscal Officers and Business Managers
SUBJECT: Health Insurance for Laid-off Employees

I. Background

Pursuant to the placement and training provision of the 1992 collective bargaining agreement between the State of Connecticut and the State Employees Bargaining Agent Coalition (SEBAC III) and Management Personnel Policy No. 92-1, an employee who is terminated as a result of layoff (or non-renewal) from state service is eligible under certain circumstances for continuation of state-sponsored medical and dental coverage.

II. Introduction

The purpose of this memorandum is to discuss the administrative and operational procedures implemented by the Office of the State Comptroller to comply with the placement and training provision as it pertains to employees. Eligibility criteria are recapitulated below; for your information, they were initially presented in Comptroller's Memorandum No. 95-39.

III. Discussion

A. Eligible employees are those who meet all of the following criteria:

  1. Participated in the state employee health plan at the time of the layoff;
  2. Exhausted or waived all transfer or bumping rights;
  3. Have not been offered a suitable vacancy or On-the-Job Training Placement.

In accordance with SEBAC III, health insurance benefits will continue on a month-to-month basis, for a maximum of six calendar months of coverage, unless the individual is (1) employed in another job with health benefits, or (2) rejects an offer of suitable state employment. The calculation of the six-month period begins the first of the month following the date of the layoff; it does not include the calendar month in which employment terminates. For example, continuation coverage for a layoff effective date of December 15, 2002 would begin January 1, 2003 and continue for a six-month period through June 30, 2003.

Please note that agencies should not discontinue coverage prior to expiration of six calendar months of coverage unless directed to do so by the Comptroller's Retirement & Benefit Services Division.

B. MSA Payroll Procedures

  1. After processing the last payroll for a laid-off employee, the medical and dental insurance D/OEs for the state share should remain unchanged; the D/OEs for the employee share should be closed.
  2. In the MSA payroll field for "Check Sequence Number", replace the sequence number with the code LYOFF.
  3. Arrange with the employee to collect any employee share due on a regular basis, and remit the payment directly to the appropriate carrier (s).
  4. At the conclusion of the six month period, calculated as herein, or earlier if notified to do so by the Comptroller's Retirement and Benefit Services Division, reset the "Check Sequence Number" field to blank and close the D/OEs for state share insurance.

C. COBRA Rights and Procedures

At the end of the extension period, or earlier if an employee chooses only individual coverage but previously had family coverage, COBRA continuation coverage must be offered in accordance with Comptroller's Memorandum No. 97-58 dated November 21, 1997.

D. Health Insurance for Employees with Vested Retirement Rights

For employees who have vested in the State Employees Retirement System at the time of lay-off, a form CO-744-V should be submitted with each vested rights application. Please refer to Retirement Division Memorandum entitled "Retiree Eligibility for Health Insurance", dated April 15, 1993, for further information.

IV. Conclusion

Questions regarding payroll procedures should be directed to the Comptroller's Payroll Services Division at (860) 702-3445; all other inquiries on this topic should be directed to the Comptroller's Retirement & Benefit Services Division at (860) 702-3535.

Very truly yours,

NANCY WYMAN
State Comptroller

NW/SW/NM/wpm

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