HR - Processing a Termination when Employee Retires

This guide will walk you through the steps of processing a termination when an employee is retiring versus resigning in HRS.

Procedure At-a-Glance

Category: Termination upon retirement
Audience: Employees, managers, supervisors, payroll coordinators, Service Center staff.
Overarching Process: N/A
Jump to Procedure Steps (below)
Jump to Related Policies/Job Aids (below)

Before using this guide you should have the following:

  • Employee's Empl ID
  • Job Change (with a Position) form or a Job Change (without a Position)form with all the completed data.

Note: In HRS there is an Action and an Action Reason that is entered on the employee's job record. The Action would be Termination and the Action Reason would be Retirement. The action reason Retirement is used when an employee indicates they are leaving the UW System due to retirement. When an employee retires it generally means that they will be applying for and receiving a retirement annuity from the Wisconsin Retirement System. This Action Reason generally would not be used for an employee under the age of 55 which is the earliest age an individual can retire from the UW System.

The Action and Action Reason Codes are used by the system when processing the termination in order to set the correct coverage paid thru dates and the correct deduction end dates. The coverage paid thru date is used on COBRA forms and this information is sent to the various benefit plan vendors. Coverage paid through dates may differ based on the “Action Reason” for the termination. Various plans have different rules as it relates to how far an employee's premiums are paid and therefore how far after retirement the employee has coverage.

The coverage paid through date for health insurance is also important as it is the date that staff include on an employee's Accumulated Sick Leave Credit Certification form which is submitted to the Department of Employee Trust Funds for an employee that is retiring.

IMPORTANT: If an employee has more than one Empl Record it is EXTREMELY important that all Empl Records be terminated with an “Action Reason” of ”Retirement” otherwise NONE of the benefits will be terminated timely.

Procedure Steps

To perform this procedure, please follow these steps:

  1. Sample Job Change Form for a Retirement:
  2. Job Change Form

  3. Go to Workforce Administration > Job Information > Job Data
  4. Go to Job Data

  5. Click in Empl ID and enter the EmpID of the employee and click Search.
  6. Search for Employee

  7. You need to add a row in the database before you can add any information.
    • Click Add a new row.

    • Click the + sign to add a new row.

    Before you make any changes take a look at the data on the page for the employee. You will change relevant fields when you terminate the employee.

  8. Add a new row to make changes

  9. Enter the Effective Date of the Retirement.

    Remember, any time you make a change you have to have an effective date. An employee's effective date for this action is the date that they are last paid. The system then generates the "termination" date which is one day later. The retirement effective date is not the last date paid, it is the first date off payroll. For example, if someone is planning to retire 12/29/2011 the Effective Date of the Retirement would be 12/30/2011 since this is the first date the employee will be off payroll.

  10. Fill in effective date of retirement

  11. Select the Action and choose Termination and Action Reason Code, Retirement.

    The Action in the HRS System is Termination. The Action Reason, Retirement, indicates the employee will be applying for and receiving an annuity from the Wisconsin Retirement System. Every time you make a change to someone's data you must select an Action.

  12. Select Termination as the Action and Retirement as the Reason

  13. Save.
  14. Click on Save in lower left corner of screen

  15. For Tenure, update the faculty profile as necessary. Please see HR - Tenure Tracking.
  16. **Return to the top**

    Related Policies

    • N/A

    Related Jobaids:

    • Document 16643 is unavailable at this time.

    Related Forms:

    • N/A

Keywords:HR, Human Resources, Job, Position, Terminate, Termination, Retire, Retirement Action Reason   Doc ID:20106
Owner:Tami E.Group:Human Resource System (HRS)
Created:2011-09-01 11:25 CDTUpdated:2016-06-24 09:39 CDT
Sites:Human Resource System (HRS)
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