Tips for Handling Employees Separating in June

Each year, we have a large number of employees who separate due to retirements from UCSF at the end of June.  When an employee terminates all University employment, the Human Resources (HR) and Payroll staff must process the separation in a timely manner to ensure that the employee is paid accurately on their last day of work.  You can help us achieve a smooth transition for employees by:

  1. Completing the separation Management Action as early as possible
    1. Management Actions effective dated the last week of June must be received by HR on or before June 20 to meet the deadline for payment on June 28
  2. Including the correct separation date on the Management Action to HR
    1. Retirees are counseled by the UC Retirement Administration Service Center (RASC) on the most beneficial separation date.  Employees retiring effective July 1 are encouraged to use a June 28 separation date in order to have a one-day break in service before they begin receiving retirement benefits.
  3. Approving timesheets by end-of-day on June 19
    1. In order for Payroll to calculate the final check for separating employees, we must know what hours the employee worked and what leave they took in the days leading up to their separation. Managers should work with their separating employees to do a best estimate of the time they will work through the end of their last pay period.
    2. For biweekly paid employees, managers will need to estimate time and approve timesheets for the pay period 6/17/18 through 6/30/18
    3. For monthly paid employees, managers will need to report leave taken between 6/1/18 and 6/30/18
  4. Reminding employees to visit the Fidelity website to make any changes to their UC Retirement Savings Program before June 14
    1. Employees wishing to defer income from their “vacation payout” to a tax-deferred retirement savings plan, may elect to start, change or increase their voluntary contributions to a UC Retirement Savings Program.  Contribution elections are subject to payroll deadlines and maximum allowable contributions (MAC).
    2. Employees may still make changes to their 403(b) plan and have those changes take effect in time for the calculation of their final check if they make the changes by 5 p.m. on June 14, 2018.
    3. Employees may make changes to their 457(b) until 5 p.m. on May 31.  According to IRS rules, enrollment in the 457(b) Plan cannot go into effect immediately.  Changes must be made by 5 p.m. on the last business day of the month for next month’s earnings. For example, if you enroll or change your 457(b) contribution in May, the enrollment or change is reflected in June earnings.
  5. Requesting employees eligible for Incentive Award Program (IAP)/Clinical Enterprise Management Recognition Program (CEMRP) payments review their address to ensure timely payment
    1. Retiring employees eligible for an IAP/CEMRP will receive their payment later in the calendar year (generally around October); the specific pay date is still to be determined
    2. Payments will be mailed as paper checks to the mailing address contained in the payroll system
    3. Employees should review their address in At Your Service Online (AYSO) to ensure timely receipt of their IAP and other official University documents.  Address updates should be made as soon as possible.