| | |
Your Employment Ends
|
 |
|
|
|
Your Employment Ends
If your employment with the Corporation ends, your coverage under most of the Corporation's benefit plans ends as of the last day of the month in which your employment ends. (Disability coverage ends as of the day you terminate employment.) You may have the opportunity to continue healthcare coverage under the Corporation's plans at your own expense through COBRA. You can continue your employee supplemental life insurance coverage through the portability feature at rates that are somewhat higher than the Corporation's group rates, but which are lower than the rates available if you convert coverage to an individual policy. You can convert some other insurance coverages to individual policies directly with the insurance company.
Bear in mind that if you want to continue healthcare coverage through COBRA, you have only 60 days from the day you receive your notice of the opportunity to continue coverage to elect this coverage. To continue or convert other insurance policies, you generally must apply within 31 days of your termination date.
When you leave the Corporation, you have the option to rollover or receive, depending on your age, the vested value of your 401(k) Savings and Profit Sharing Plan balance, or you can defer payment to a later date, but not later than age 70 1/2. If you have a vested pension plan benefit, you may receive a retirement benefit starting at age 65. You may qualify to receive your retirement benefit as early as age 55, depending on how much continuous service you have with the Corporation.
If you do not return on schedule from an approved leave of absence…
-
you are considered to have resigned. Any benefits you continued during your leave will end as described under How This Event Affects.., based on your termination date.
If you are terminated involuntarily and are eligible for separation pay benefits…
-
you have the option to sign a release and receive double your base separation pay benefit, and may elect to receive separation pay in installment payments. While you are receiving installment payments of separation pay benefits, most of the Corporation coverage you have will continue (with deductions from your separation pay installments to cover your contributions for coverage). If you do not sign a release, you will receive the normal separation pay benefits in a lump-sum payment, and you will only be able to continue certain benefits coverage, through COBRA.
Paying for Converted Coverage
If you are considering converting the Corporation coverage you had as an active employee to an individual policy, be sure to understand how much the individual policy will cost, and compare that cost with coverage you could get without conversion. In most cases, converted coverage is significantly more expensive than the coverage available through the group plans the Corporation offers. You may be able to get coverage from other sources—such as professional, fraternal, or other organizations—at more attractive rates. An alternative to conversion for your supplemental life insurance coverage is continuing that coverage through the portability feature.
Things to Do
-
Review the materials you will receive on continuing healthcare coverage through COBRA and decide whether you and your eligible family members should use that coverage or some other coverage that may be available to you.
-
Decide whether to continue your supplemental employee life insurance and whether to convert other Corporation life and any property/casualty insurance coverages to individual policies.
-
Ask Yourself: If I don't continue my healthcare and other insurance coverage through COBRA, the supplemental life portability feature, or conversion, do I have any other sources of coverage, such as through my spouse's employer's plans? How does the other coverage available compare with COBRA continuation coverage, portability coverage, and conversion to individual policies? Of the coverages that I can continue, which are most important to me and my family?
-
If you have a balance in the Healthcare FSA, determine what eligible expenses you have incurred that could be reimbursed from that balance?
-
If your balance is significantly higher than your eligible expenses, you might decide to continue contributing to your Healthcare FSA on an after-tax basis through COBRA, to give yourself time to incur healthcare expenses—such as a new pair of eyeglasses—so that you could use up the balance.
-
Decide how to handle any vested balance in the 401(k) Savings and Profit Sharing Plan.
-
Ask Yourself: Will my balance be easier for me to manage if I make a direct rollover into an IRA? Does my new employer have a 401(k) plan into which I might directly roll over my balance from The McGraw-Hill Companies plan? Which plan offers investment options that I prefer, would be easiest for me to manage, and would provide me with the greatest access to my savings?
-
If the value of your benefits in the Pension Plan is $5,000 or less—Decide what to do with the distributions you may receive.
-
If the value of your benefits in the Savings and Profit Sharing Plan is $1,000 or less—Decide what to do with the distributions you may receive.
Making Changes
After you've considered your options, if you decide to or need to change your benefits, you can do so via Employee Self-Service on The McGraw-Hill Companies intranet. If the change you are making is to your 401(k) savings participation or to the investment of your 401(k) Savings and Profit Sharing Plan investments, visit Your Benefits Resources or call 1-866-477-6820.
How This Event Affects…
Medical, Dental, and Vision Coverage
|
-
Any coverage you have enrolled for as an employee ends on the last day of the month in which your employment ends.
-
You may be eligible to continue coverage through COBRA. However, under COBRA you pay the full cost of that coverage, plus a small administrative charge.
|
|
|
-
Your contributions end when your pay ends.
-
You may be eligible to continue contributing to your Healthcare FSA through COBRA, but only on an after-tax basis. Continuing your contributions this way would allow you time to incur eligible expenses, for which you could be reimbursed through your Healthcare FSA.
-
Only expenses incurred while you were contributing are eligible for reimbursement. Claims must be submitted by May 31 of the year following the year your contributions end.
|
|
|
-
Your contributions end when your pay ends. You may not continue contributions to the Dependent Care FSA through COBRA.
-
You can submit claims for eligible dependent care expenses incurred through December 31 of the year your employment ends - even if the expenses are incurred after you leave. Claims for eligible expenses must be submitted by March 31 of the year following the year your contributions end.
|
|
|
-
Short-term and long-term disability coverage ends on the day your employment ends.
-
If you are disabled before your employment ends, disability benefits continue according to plan provisions.
|
Employee Life and Accident Insurance
|
-
Coverage ends on the day your employment ends. You have the option to continue your supplemental employee life insurance coverage at rates slightly higher than the Corporation's group rates, through the plan's portability feature. You may also convert your employee basic life insurance coverage and your AD&D coverage to individual policies, at rates established by the insurance company. For continuation and conversion, you must apply within 31 days of your termination date.
|
Dependent Life and Accident Insurance
|
-
Your family members' life and accident insurance coverage ends on the day your employment ends.
-
Depending on their ages when coverage ends, your family members may be able to convert their coverages to individual policies. If eligible, they must apply within 31 days of your termination date.
|
Property/Casualty Insurance
|
-
METPAY payroll deductions end with your last paycheck. If individual coverage is available in your area, METPAY will contact you to see if you want to continue coverage. To continue coverage, you will have to pay premiums directly to METPAY.
|
|
|
-
If you have a vested pension plan benefit, you are eligible to receive a benefit when you retire.
-
If your vested balance in the Pension Plan is $5,000 or less at the time of your termination, you will receive a mandatory lump sum distribution.
-
If your vested balance in the 401(k) Savings and Profit Sharing Plan is $1,000 or less at the time of your termination, you will receive a mandatory lump sum distribution.
-
You have the option to request a total distribution of your vested benefits in the 401(k) Savings and Profit Sharing Plan and (subject to taxes). You can avoid paying taxes on the taxable portion of your distribution by rolling it into an IRA or another qualified plan. Alternatively, you can leave the money in your accounts and continue to direct its investment, provided the balance in each plan is greater than $1,000.
|
|
