DRS Email 20-012, Separation Dates for DRS and SEBB

Notice No: 20-012
Date:  Aug. 7, 2020
Applies to: School Districts, Charter Schools, Tribal Schools, Educational Service Districts
Subject: DRS Email 20-012, Separation Dates for DRS and SEBB

The separation date reported to DRS and the School Employees Benefits Board (SEBB) will be the same date effective this school year (2019/2020), but not necessarily reported at the same time.

This change is due to the launch of the SEBB program, which offers employer-supported health insurance options to teachers and other school employees. Once an employee has resigned their position, they are no longer eligible for SEBB coverage.

The employee’s separation date impacts SEBB coverage and retirement service credit. These three scenarios illustrate how:

June separation and last paycheck is June – employee resigns position effective June 30 and June is the last paycheck:

• Health care coverage through SEBB will be discontinued after June 30
• Report a June 30 separation date to the Health Care Authority (HCA) by May 12
• Retirement can be July 1 at the earliest (no service credit for July and August)
• Report the June 30 separation date to DRS with the June transmittal

June separation and last paycheck is August – employee resigns position effective June 30, but receives July and August paychecks:

• Health care coverage through SEBB will be discontinued after June 30
• Report a June 30 separation date to HCA by May 12
• Retirement can be July 1 at the earliest (no service credit for July and August)
• Report the June 30 separation date to DRS in the September transmittal
  • Here’s why: If B codes for July and August are reported in the July or August transmittals, all the member’s data will reject if there is a June 30 separation date on file with DRS

August separation and last paycheck is August – employee resigns position effective Aug. 31:

• Health care coverage through SEBB in July and August
• Report the Aug. 31 separation date to HCA by July 12
• Service credit for July and August (except for TRS Plan 1)
• Retirement can be Sept. 1 at the earliest
• Report the Aug. 31 separation date to DRS with the August transmittal

If you have additional questions regarding this notice, please contact DRS Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2, or email us.