October 12, 2023

Tips for Supporting Employees with Lump Sum Separations

Action Required: Share the following information with all human resources (HR) office employees.

Description: To help ensure that your lump sum separation Personnel Action Request (PAR) packages are accurately processed and meet the mandated requirements, use the tools in the Lump Sum Separation Toolkit, and provide the following information/forms to the employee (at least five (5) to six (6) weeks prior to separation, as is possible).

  • Civil Service State Employee Guide to Retirement
  • Savings Plus Lump Sum Separation Pay Contribution Election Form
    • The Election Form must be signed, dated, and officially submitted by the employee at least five (5) workdays (Monday through Friday, excluding Saturdays, Sundays and legal holidays) prior to the separation effective date. No changes will be accepted after the five-day threshold has passed.
    • If an employee is including a 457(b) Traditional Catch-Up or Age-Based Catch-Up in their Savings Plus contributions, they must include those amounts in Section II of the Election Form. See the Separation Checklist for Personnel Specialists (in the Lump Sum Separation Toolkit) for examples of correctly entered contribution amounts on the Election Form. Please remember, the employee must write a contribution amount(s) – and not write “Max” – on the Election Form.
    • Encourage employees to submit the Election Form at least 30 days prior to separation, as doing so provides more opportunity to address questions and correct any errors.
  • Year-to-Date (YTD) Accrued Leave and Contribution to Savings Plus Account(s)
    • Provide the employee an estimate of their lump sum accrued leave payout amount available at separation, as this will help the employee decide how much to cash out or contribute to a Savings Plus account. Refer to the Lump Sum eLearning modules 3 and 4, and your department’s procedures, for how to determine an employee’s lump sum accrued leave payout amount.
    • Provide the employee year-to-date Savings Plus contribution obtained in TAXI.

Population Affected: All HR Offices