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

MEMORANDUM NO. 95 - 39

June 15, 1995

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Personnel and Payroll Officers
SUBJECT: Health Insurance for Laid-off Employees
  1. Background

    Pursuant to a 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 lay-off (or non- renewal) from state service is eligible under certain circumstances for continuation of state-sponsored medical and dental coverage. The employer's portion of the cost of such coverage is paid by the Placement and Training Fund for up to six calendar months. Eligible employees are those who meet all of the following criteria:

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

      Under SEBAC III, benefits will continue on a month-to-month basis, for a maximum of six calendar months of coverage, including the calendar month in which the employment terminates, unless the individual is (1) employed in another job with health benefits, or (2) rejects an offer of suitable state employment. In accordance with Section II, A, 4 of this Memorandum, 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 Benefits Division.

  2. Discussion

    In order to properly assess the Placement and Training Fund for the cost of health insurance under SEBAC III, the following procedures will become effective for the pay period ending June 22, 1995 (check date of July 7, 1995):

    1. 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 end of the six calendar month period, or earlier if notified to do so by the Comptroller's Benefits Division, reset the "Check Sequence Number" field to blank and close the D/OEs for state share insurance.

    2. 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. 95-3, dated February 1, 1995.

    3. 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-944-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.

  3. Summary

    Questions regarding payroll procedures should be directed to the Comptroller's Central Payroll Division , at (203) 566-5428; all other inquiries on this topic should be directed to the Comptroller's Benefits Division, at (203) 566-1742.

Very truly yours,

Nancy Wyman
State Comptroller

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