Updated “Separation” Event Now Available Online

The latest enhanced employee administration event on the NRECA Employee Benefits website is the “separation” event used by benefits administrators (BAs) to notify NRECA when an employee is terminating employment or retiring. Users will be guided to:

• Enter an employee’s name and then choose either “retirement” or “termination” as a status;
• Confirm an employee’s “last day worked”;
• Update dependents;  
• Review and update group and retirement beneficiaries; and
• Link to COBRA and tax-advantaged account (e.g., 125 plan, HRA) screens, if applicable for your cooperative.

We’ve incorporated many of the features you are familiar with in other enhanced employee administration events, such as:

• Enhancing the look and feel, which makes the process easier to use;
• Improving the process flow by reducing the number of screens and steps (i.e., 28 steps to five);
• Incorporating Group, 401(k) Pension Plan and Retirement Security Plan beneficiaries; and
• Saving your work in progress and providing a notification via Message Center before it automatically completes.

Last Day Worked Validation: This new feature prompts BAs to choose “yes” or “no” to confirm whether the termination date they are entering for an active, compensated employee is also that employee’s last day worked. This question will only appear for active, compensated employees (i.e., not for directors or employees on long-term disability leave of absence). This new “last day worked” validation requires a “yes” response for the process to continue. If “no” is selected, the BA will be instructed to contact NRECA’s Member Contact Center to discuss options.

This validation was added to initiate discussions between the Member Contact Center and the BA when the last day worked and the separation date differ. Also, if an employee retires prior to their normal retirement age/date, their retirement benefits may be reduced. The last day worked is recorded on the employee’s record and will be used to verify the years, months and days of benefits service.

Generally, the cooperative should report an employee as having terminated employment as of the date that employee is no longer receiving compensation for the performance of services. With certain limited exceptions, including COBRA, once an employee no longer performs services for their employer, he or she becomes ineligible for coverage or benefits under the terms of the plans.

If you have any questions, please reach out to the Member Contact Center at 866.673.2299 or via email at contactcenter@nreca.coop. Representatives are available Monday through Friday, 7 am until 7 pm, Central time.