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, 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 doing the following:

  1. Complete the separation Management Action as early as possible.
    1. Separations effective dated the last week of June must be received by HR on or before June 17, 2019. This is to meet a June 24 check write date for payment on June 27.
  2. Include 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, 2019 are encouraged to use a June 27 separation date in order to have a one day break in service before they begin receiving retirement benefits.
    2. Managers should confirm with the retiree what separation date to use on the separation Management Action in PeopleConnect. This is especially true for employees retiring effective July 1 who have communicated a separation date other than June 27.
  3. Approve timesheets by end-of-day June 17, 2019.
    1. In order to calculate the final check for separating employees, Payroll must know what hours the employee worked and what leave they took in the days leading up to their separation.
    2. 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.
    • For biweekly paid employees, managers will need to estimate time and approve timesheets for the pay period 6/16/19 through 6/30/19.
    • For monthly paid employees, managers will need to report leave taken between 6/1/19 and 6/30/19.
  4. Remind employees to visit Fidelity to make any changes to their UC Retirement Savings Program before June 14, 2019.
    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 5pm on June 14.
    3. Employees may not make changes to their 457(b) plan after May 30. 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.