Compliance Connection

Keeping Your Benefits When Leaving Your Job

Submitted by Ginger Huff, Arkansas State Manager, American Fidelity Assurance Co.

Leaving your employer can be a stressful and confusing time. When it comes to your benefits, some insurance plans have portability or conversion options, which allow you to keep the policy regardless of where you work or if you retire. In some cases, you may continue your coverage for a period of time under Consolidated Omnibus Budget Reconciliation Act (COBRA).

You may be able to keep some Individual Policies such as Accident Insurance, Cancer Insurance, Critical Illness Insurance, and Life Insurance. Typically, your Healthcare Flexible Spending Account (HCFSA) or Dependent Care Account (DCA) ends on your last day of work. Depending on your plan, you may have a runoff period that allows you to submit eligible expenses after your last day. However, these expenses usually need to be incurred during your time on the job. Learn more about what to do with your HCFSA when your job changes.

Health Savings Accounts (HSAs) are individually owned and do not terminate when you change employers. If you leave your employer, you can take your account with you. Also, as long as you continue to meet the HSA requirements, you can contribute and withdraw your HSA savings wherever you go. It’s important to talk to your employer about account management fees -they might cover them for you while you’re employed.

If you have multiple employer-sponsored retirement accounts from previous employers, you may be able to roll your funds over into your current employer’s plan, or keep them where they are. Rolling the funds over could help ease tracking of your investments. Keeping them where they are may allow you to maintain specific investments, but may also limit future access or incur fees. There could also be different pre- or post-tax benefits to each plan that should be considered too. The options available to you may vary depending on each retirement plan’s rules. Discuss potential risks and benefits with your financial or tax advisor to see what’s best for you.