Information to Assist Employees Leaving State Employment

The following information has been prepared to serve as a guide for Human Resource Professionals when assisting an employee who is leaving state employment.

Under certain circumstances the law may prohibit public officers and employees from engaging in specific activities for a period of time after leaving state employment. These statutory restrictions are discussed in the Arizona Revised Statues, Title 38, Chapter 3, Article 8, Conflict of Interest of Officers and Employees. Officers and employees who are leaving state government employment should familiarize themselves with the prescribed limitations to avoid future complications. You can review the statute at: www.azleg.state.az.us.

Last Paycheck
The employee’s last paycheck, with all leave balances (except sick leave) will be paid off (i.e., annual leave, compensatory hours earned, extra hours, and holiday hours earned). Compensatory hours shall be paid out at the employee’s average base salary during the last three years, or current hourly rate, whichever is higher. Sick leave is forfeited upon separation but may be available if the employee returns to state employment within two (2) years of the separation date. If retiring, the employee may be eligible to participate in the Retiree Accumulated Sick Leave Program (RASL). There are more details regarding RASL under the retirement section.
Regular deductions such as wage assignments, loan payments and deferred compensation will be deducted from the employee’s last paycheck. The employee should contact those receiving the payments in order to make other arrangements.

Benefits
Information regarding benefits can be accessed by clicking
here.

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), entitles an employee to elect continued coverage under the group health plan, if the employee no longer has benefits through ADOA Benefit Options due to a qualifying event. COBRA coverage is also available to your spouse and dependent children, provided they were covered by the employee’s plan on the day of the qualifying event.  The duration of the continuation period varies according to the qualifying event.  Further information can be accessed by clicking here.

 

Retirement
The employee should contact their retirement system prior to or upon separation to learn about short-term  and long-term advantages/disadvantages of leaving contributions on deposit, withdrawing contributions, buying credited service, etc.
Arizona State Retirement System (ASRS)

3300 North Central Avenue
Phoenix, Arizona 85012
Phoenix Area: (602) 240-2000
Tucson Area: (520) 239-3100
Toll Free outside Phoenix and Tucson: (800) 621-3778

Web site: www.azasrs.gov

Public Safety Personnel Retirement System (PSPRS)
Elected Officials Retirement Plan (EORP)
Corrections Officers Retirement Plan (CORP)
3010 East Camelback Rd., Suite 200
Phoenix, Arizona 85016
In Phoenix: (602) 255-5575

Web site: www.psprs.com

An employee who participates in one of the authorized State of Arizona retirement systems, has more than 500 hours of accumulated sick leave, and retires from state employment, is eligible to receive a percent of their accrued sick leave hours. Additional information regarding the Retiree Accumulated Sick Leave Program (RASL) is available online at www.gao.az.gov.

Deferred Compensation
An employee, who participates in the deferred compensation program, should contact their agency representative to learn about the options that are available once they are separated from state employment. This information can be accessed online at
www.arizonadc.com or by telephone at (800) 796-9753.

Resources
Information regarding unemployment insurance can be accessed online at
www.azdes.gov.
The Arizona Department of Economic Security (DES) provides information on the entire array of assistance programs offered, including information on the Arizona Health Care Cost Containment System (AHCCCS), food stamps, cash assistance, employment assistance through the Jobs Program, and guaranteed childcare. This information can be accessed online at www.azdes.gov.

Miscellaneous
If the employee has an outstanding Risk Management claim (e.g., Property & Liability, Worker's Compensation), it will continue to be reviewed and processed by the Arizona Department of Administration's Risk Management Unit. Risk can be contacted at (602) 542-2182 or at
www.azrisk.state.az.us.