Layoff - with and without employer contribution

When you are laid off you can make certain corresponding changes to all of the insurance benefits you have in place at the time of the layoff. SEGIP will mail a packet to your home that explains your options.

COBRA continuation coverage allows you to continue certain coverages at your own expense for up to 18 months following your layoff. If you choose to continue your coverages on layoff, you will be billed by SEGIP.

If you qualify for an employer contribution toward medical and dental under the terms of your labor agreement or compensation plan, you will be billed for the employee portion of the insurance premiums.
If you do not receive an employer contribution, you will be billed the full cost of the insurance premiums.

You may continue your insurance as a retiree if you meet the eligibility requirements. You may also receive some layoff benefits, such as the employer contribution, when you select the retirement option. Contact your Human Resources office to find out if you qualify as a retiree and to obtain the needed forms. You must submit your retirement paperwork to SEGIP within 30 days of your layoff date.

What changes can I make, and how?
You may change your medical, dental, optional life, spouse life, child life, short-term disability, long-term disability and accidental death and dismemberment and your Medical Dental Expense Account (MDEA).

Medical and Dental
- If you receive an employer contribution toward your medical and dental insurance, your medical and dental coverage will automatically be continued, and you will need to take no action.
- If you do not receive an employer contribution, you must take action and choose to continue your coverage and you will be billed for the cost of the coverage.
- You may reduce your coverage level by changing from family to single or dropping your coverage.
- Make changes to your medical or dental coverages by submitting to SEGIP, within your enrollment period, the Personal Enrollment form that will be mailed to your home.
- You may cancel your coverage at any time by writing a note of cancellation on the monthly insurance bill that will be mailed to your home. Canceled coverage cannot be reinstated unless you return to State employment and are eligible for insurance.
- You may be enrolled on the coverage of your SEGIP enrolled spouse or parent if you are eligible. Your dependents may also be enrolled by their other parent or spouse who is covered by SEGIP. To make this change, the spouse or parent must complete A Qualifying Status Change form and submit it to SEGIP within the allowed time frame.
- You cannot change your medical or dental plans administrator or change between the High Deductible Health Plan (HDHP), if eligible, and the Minnesota Advantage Plan.
Life, Disability, and Accidental Death and Dismemberment Insurance
- If you receive an employer contribution, your basic life and managerial life coverage will continue until your employer contribution ends. After your period of employer contribution ends, you will be offered the option to continue your coverage but will be required to pay the full cost of that coverage. This is an offer to continue your COBRA for the remainder of the COBRA period.
- You may continue optional employee, spouse and child life, STD and LTD at your own expense through COBRA. You may only continue AD&D if you receive an employer contribution, otherwise, it will end on the last day of your employment. A bill for your premiums will be mailed to your home.
- You may drop STD and LTD but you may only pick up these coverages again without going through underwriting if you return to State service within one year.
Pre-tax accounts
- You may continue your Medical Dental Expense Account (MDEA) for the remainder of the calendar year on an after-tax basis while on layoff. You cannot change the elected amount of your MDEA.
- You must return your MDEA within 60 days of your layoff date to continue it on an after-tax basis.
- You may not continue the Dependent Care Expense Account (DCEA) or Transit Expense Account (TEA) in layoff status. These coverages will automatically drop. You do not need to take any action.
- Only daycare expenses incurred when you are actively looking for work may be submitted through your DCEA. You may not continue contributing to the account.
Long Term Care Insurance
- Long-term care insurance was an optional benefit until 2016. Some employees continue to pay for the coverage on their own. A layoff does not affect this coverage. You will continue to pay CNA directly. If you decide to drop the coverage, you cannot re-enroll.
What other changes can I make, and how?
- Name changes: submit this change to your Human Resource office.
- Address changes: you update your address in Employee Self Service.
- Tax withholdings: contact your agency’s payroll department.
- Retirement account: contact MSRS at info@msrs.us, 651-296-2761, or 800-657-5757.
- Life and AD&D beneficiary changes: Securian Financial (Minnesota Life).
How long do I have to make the changes?
- If you will be enrolling as a dependent on a SEGIP covered parent's or spouse’s coverage during your layoff, your parent or spouse must enroll you on their coverage within 30 days, including the day of the layoff or when your employer contribution ends.
- You may drop insurance coverages at any point during the layoff.
- The request to continue your MDEA must be made within 60 days of the layoff date including the day of the event. If you continue your MDEA and then stop making payment, coverage will end on the last day of the month for which full payment was made. Remaining funds will be forfeited.
Timing is everything
- An enrollment is completed by submitting the required forms to the SEGIP office no later than the last day of the enrollment period.
- Do not delay submitting your application by the deadline. Call SEGIP at 651-355-0100 within your enrollment period when there is a delay obtaining documents. Otherwise, late applications will not be processed.
- If the enrollment is not completed within the allowed period, your next opportunity to change your coverage is during the next annual Open Enrollment or upon another qualified life event.
When will the changes take effect?
- Changes to medical and dental coverages take effect the first of the month following your layoff.
- Changes to your life and AD&D coverage take effect on the first day of your layoff status.