STATE EMPLOYEES
RETIREMENT COMMISSION
COMPTROLLER'S SEAL STATE OF CONNECTICUT 55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
TELEPHONE: (860) 702-3480
TELEFAX:(860) 702-3489
MEDICAL EXAMINING BOARD
for DISABILITY RETIREMENT
HEALTH CARE COST
CONTAINMENT COMMITTEE
STATE OF CONNECTICUT
RETIREMENT AND BENEFIT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER

RETIREMENT & BENEFIT SERVICES DIVISION MEMORANDUM

MARCH 14, 2003

TO THE HEADS OF ALL STATE AGENCIES

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

Pursuant to a Stipulated Agreement dated March 13, 2003 between SEBAC and the State of Connecticut referenced in Office of Labor Relations (OLR) General Notice 2003-12a (dated March 14, 2003), health insurance for laid off employees will be determined in accordance with existing rules and practices as determined by the Placement & Training Committee, in concert with the Retirement & Benefit Services Division. Therefore, pursuant to Comptroller's Memoranda Nos. 2002-41 (dated November 25, 2002) and 2002-41A (dated March 6, 2003), the purpose of this communication is to advise of procedures to: (1) reinstate health insurance coverage for eligible laid-off employees; or (2) implement health insurance coverage for eligible laid-off employees.

Please understand that it is not the intent of this Stipulated Agreement to confer eligibility status on laid-off employees who either (1) declined continuation coverage upon termination or subsequent thereto, or (2) had their continuation coverage cancelled for failure to make required premium payments.

The following actions are immediately required on your part:

  1. Contact employees of your agency who were laid-off from November 1, 2002 through the present date, who were eligible for and subsequently continued on coverage under the health insurance continuation provisions of SEBAC III, but whose coverage was discontinued as of March 31, 2003 pursuant to OLR General Notice 2003-01. Advise these employees that health insurance continuation is available for the full six month period, subject to the terms of the Placement & Training Agreement.
  2. Each eligible employee must be billed for the employee share of the premium for the pay periods ending March 6, 2003 and March 20, 2003, which corresponds with health insurance coverage for the month of April 2003.
  3. If the LYOFF code in the check sequence field has been deleted or if the state share D/OE's have been turned off for a laid-off employee who is otherwise eligible for extension coverage, replace the sequence number with the code LYOFF in the MSA payroll field for "Check Sequence Number". If no state share payment was processed for pay period ending March 6, 2003, check date March 21, 2003, a double payment (deduction) must be taken for pay period ending March 20, 2003, check date April 4, 2003.
  4. Advise eligible employees who may already have paid COBRA premiums for April 2003 that they should request a refund from the COBRA Administrator for that month.
  5. Advise eligible employees who may have sent a completed COBRA Notice to the COBRA Administrator to disregard any COBRA premium bill they may receive for the month of April.
  6. Arrange with the employee to collect any employee share due on a regular basis for their remaining six month period, and remit the payment directly to the appropriate carrier.
  7. At the conclusion of the employee's eligible six month period, reset the "Check Sequence Number" field to blank and close the D/OEs for state share insurance. Offer COBRA continuation coverage in accordance with Comptroller's Memorandum No. 97-58 (dated November 21, 1997).
  8. Advise eligible employees who may be laid-off between March 13, 2003 and June 30, 2003 that health insurance continuation is available to them on the same terms and conditions as applicable under the Placement & Training Agreement.

Questions regarding payroll procedures should be directed to the Comptroller's Payroll Services Division at (860) 702-3447; 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

BY:

Steven Weinberger, Director
Retirement & Benefit Services Division 

SW/NM/wpm 

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