Retirement Badge #09: Separation of Employment-Retirement Badge #09

Video Transcription

Video Summary

Rochelle Gaines presents WASBO Retirement Badge 9 on separation of employment, focusing on cash outs, death, and disability. Separation is ending employment with a DRS-covered employer for reasons other than retirement, and employers should promptly report separations and retirements so DRS records remain accurate. She reviews types of separation: voluntary resignation (service credit stops; member may leave or withdraw contributions), retirement (employee must apply through DRS; may begin a monthly pension), layoffs/reduction in force (retain rights to prior service and contributions; employers should keep thorough documentation and refer employees to DRS for options), and termination for cause (can reduce or eliminate benefits in severe cases, though personal contributions remain refundable; coordinate reporting with HR and Employer Support Services).<br /><br />Cash outs are lump-sum payouts of earned leave; sick leave is typically cashed out at 4:1. For Plan 2 and 3 members, cash outs do not count toward reportable compensation or average final compensation (AFC). For Plan 1, up to 240 hours may count if paid within the AFC calculation period, and districts may face excess compensation liability.<br /><br />She explains death benefit reporting (employer reports promptly using DRS forms; survivors may receive refunds or annuities) and emphasizes keeping beneficiaries updated. Disability retirement is available for vested Plan 2/3 members, requires medical documentation, is determined by DRS, and can take months. Resources include DRS checklists and Employer Support Services.

Keywords

WASBO Retirement Badge 9

separation of employment

DRS reporting requirements

cash out earned leave

average final compensation (AFC)

Plan 1 vs Plan 2/3 compensation rules

layoff reduction in force documentation

death benefit reporting and beneficiaries

disability retirement application process