Terminating Employment
When your employment ends at MIT, your eligibility for benefits will change as described below. It is important to keep MIT informed of your address in order for us to keep you up to date on your benefit entitlements. If you have questions or need additional information, contact us.
COBRA Coverage
Under federal law, if you are a qualified beneficiary and lose benefits involuntarily, you may elect to continue your active Plan benefits coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA).
If you have become ineligible for health and/or dental coverage due to a termination, ineligibility or layoff and wish to continue coverage, you must complete and return the Election Form sent by the MIT COBRA Plan, administered by Crosby Benefits Systems.
COBRA coverage gives Plan Participants the opportunity to choose continuation of the same health care benefits and options they were enrolled in before their qualifying event occurred. The coverage is subject to all of the same deductibles, exclusions, limitations, and other provisions of the plan. Coverage through the MIT Group terminates the end of the month in which you terminate or become ineligible.
Learn more about COBRA.
Health Insurance
Coverage through the MIT Group terminates the end of the month in which you terminate or become ineligible. You and your eligible family members may be eligible to continue your group membership in your health insurance plan for an extended period. This extension of coverage is offered under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) for the maximum of 18-months. The law requires that you be given the opportunity to maintain your coverage for a period of up to 18 months from your termination date. The cost of this coverage is generally at 100% of the full cost of the plan plus a 2% administration charge for continuation coverage.
You will be contacted regarding the option to continue your coverage through COBRA by the MIT COBRA administrator, Crosby Benefits Systems. If you elect COBRA continuation coverage and have made your initial payment, you will receive a coupon booklet to use to make your monthly payments. Payments will be due on the first of every month for coverage for the upcoming month. Rates may change at the beginning of the Plan Year.
Dental Plan
You and your eligible family members who were enrolled in the plan prior to your termination, may continue your participation in the Dental Plan for up to 18 months from the end of the month you terminate. The cost of this coverage is generally at 100% of the full cost of the plan plus a 2% administration charge for continuation coverage.
Vision Plan
You and your eligible family members who were enrolled in the plan prior to
your termination, may continue your participation in the Dental Plan for up
to 18 months from the end of the month you terminate. The cost of this
coverage is generally at 100% of the full cost of the plan plus a 2%
administration charge for continuation coverage.
Life Insurance
Your Basic and Supplemental life insurance coverage will continue for 31 days after your termination date. You may convert all or part of your life insurance coverage to an individual policy with The Met Life Insurance Company within 31 days after you terminate employment. For a conversion form, please send email to lifeinsurance@mit.edu or call 617.253.6151.
Your Travel Accident insurance and Accidental Death and Dismemberment insurance will end on your termination date. You do not have the option to convert these coverages to individual policies.
Long-Term Care Insurance Plan
If you participate in the long-term care insurance plan, your coverage will continue after your employment ends. John Hancock Mutual Life Insurance Company will bill you automatically for your coverage. To cancel this coverage, you must contact the John Hancock Customer Service Center directly at 1-888-453-2030.
Flexible Spending Accounts (Flexible Spending Account - FSA)
You have until March 31 following the end of the Plan Year to file claims to the Health Care or Dependent Care Flexible Spending Accounts (FSA) for services received before the date of your termination. If you are currently participating in a Health Care Flexible Spending Account (HCRA) at the time of your termination, you will be eligible to continue payments to the existing account on an after-tax basis. These after-tax contributions will allow you to have access to the remaining account balance through the end of the Plan Year for service rendered after your date of termination. If you elect not to continue the account through COBRA, any account balance remaining after the end of the Plan Year is forfeited.
If you contributed to the Dependent Care Flexible Spending Account (FSA), you may submit claims for services received only up to the date of your termination. You may not continue this account through COBRA.
Supplemental 401(k) Plan
Any time after your employment at MIT ends, you may withdraw funds from your account. Please note that you are required to withdraw your entire balance if it equals $1,000 or less. If your balance equals $1,000 or less, Fidelity Investments will contact you regarding your withdrawal options.
If your account balance is more than $1,000, you are not required to withdraw your funds until the later of the April 1st following the year you attain age 70½ or the April 1st following the year your employment ends.
You may elect to withdraw funds in a single lump sum payment or as a series of scheduled payments, or as a monthly lifetime income (annuity).
Learn more about 401(k) withdrawals.
Basic Retirement Plan
You are vested in (i.e., have a right to) your benefit after you are employed by MIT for a full 3 years. Your employment includes certain periods when you are not actually at work, such as vacation, jury duty, military duty, illness, and approved leaves-of-absence.
Your benefit payments may begin at any time after your employment at MIT ends or you reach normal retirement age (65) and work no more than half-time. Federal law requires that payments begin by the later of:
- the April 1st following the year you attain age 70½; or
- the April 1st following the year your MIT employment ends.
If you have more than 10 years of MIT employment, your Basic Plan benefit must be paid to you in the form of monthly lifetime income (an annuity). If you have been an MIT employee for 10 years or less; OR if your cash balance account is $10,000 or less at the time you receive a distribution, your Basic Plan benefit may be paid to you as either a monthly lifetime income (an annuity) or a single lump sum payment. However, if your Basic Plan benefit has a lump sum value of less than $1,000, it must be paid to you as a single lump sum payment.
Learn more about Basic Retirement plan payment options.
Applying for Benefit Payments
Any time after your employment at MIT ends, contact the Benefits Office for more information.
Tax-Deferred Annuity (TDA) Program (also known as the 403(b) Program)
Any time after your employment at MIT ends, you may withdraw funds from your account. For more information, contact your TDA investment provider directly for more information:
