If you are involuntarily separated from employment, you are eligible to receive a transitional severance benefit. The severance benefit amount is based on your consecutive years of service with your employer as follows:
- Two years or less of consecutive service = Four weeks of salary
- Three to nine years of consecutive service = Four weeks of salary plus one additional week for every year over two years
- 10-14 years of consecutive service = 12 weeks of salary plus two additional weeks for every year over nine years
- 15 years or more of consecutive service = Two weeks of salary for every year of service, not to exceed 36 weeks of salary
Service credit with other employers cannot be used in calculating the severance benefit. If you are eligible for a retirement benefit at the time of your layoff, you may elect to receive the severance benefit instead of the enhanced retirement credit, in addition to a retirement benefit (see Enhanced Retirement).
If you elect a severance benefit, your employer will continue to pay your health insurance premiums for up to 12 months. Contact your employer before the end of your 12-month period to discuss your health insurance options once the severance benefit ends.
Group Life Insurance
If you are covered under the VRS Group Life Insurance Program, your employer will submit the Employer Certification of VRS Basic Group Life Insurance Coverage Under the Transitional Benefits Program (VRS-11C) to VRS. Note that:
- Any VRS optional group life insurance coverage will end and can be converted within 31 days of your layoff date.
- If you do not meet retirement eligibility at the time of termination from employment, you have the option to convert your group life insurance coverage to an individual whole-life policy by submitting the Conversion of Group Life Insurance Enrollment (VRS-35E) to Securian Financial within 31 days after the severance benefit ends. This option is not available after 31 days. If you die within 31 days after the severance benefit ends, your beneficiary will receive the natural death benefit.
- If you choose to receive the severance benefit, retire and are covered under the VRS Group Life Insurance Program, some basic group life insurance benefits will continue into retirement. You also may be eligible to continue all or a portion of your optional life insurance coverage, if applicable. Read more about Insurance in Retirement.
If you are covered under an employer-administered group life insurance plan, your coverage will continue for 12 months following your layoff date.
Forfeiture of Severance Benefits
If you are receiving the severance benefit and return to work with your previous employer in the same or a similar position or as an independent contractor performing the same or similar duties, your severance benefit will stop.