University of Minnesota
Office of Human Resources
http://www.umn.edu/ohr
612-625-2016

Health Care Account - Leaves

Leave of Absence

If you take a leave of absence, deductions will continue as long as you receive a paycheck. If you return to work before the end of the calendar year, payroll deductions will resume with the first full pay period after you return. At that point, the amount of your year-to-date contributions will be subtracted from your authorized annual amount, and the difference will be deducted from your remaining pay checks in equal installments through year end.

Once you stop receiving paychecks, you will not be reimbursed for any health care expenses incurred during your unpaid leave unless:

  • You elect to have deductions for the period of your unpaid leave taken on a pre-tax basis from your last paycheck, provided your gross pay is large enough. Contact Employee Benefits at least two weeks prior to the date of your last paycheck to make this arrangement.
  • You elect to continue participation through COBRA. This allows you to make payments to your Health Care Flexible Spending Account on an after-tax basis. Contact Employee Benefits 60 days prior to the date of your last paycheck to make this arrangement.

Termination, Retirement, or Layoff

If you terminate your employment, retire, or are laid off from the University, your contributions will terminate at the end of the payroll period that includes your last day of work; you will not be reimbursed for expenses incurred after your termination, unless:

  • You elect to have the deductions for the balance of the calendar year taken on a pre-tax basis from your last paycheck, provided your gross pay is large enough. If so, you may continue to submit claims for expenses incurred after your employment ends through the end of the claim period. Contact Employee Benefits at least two weeks prior to the date of your last paycheck to make this arrangement.
  • You elect to continue participation through COBRA. This allows you to make payments to your Health Care Flexible Spending Account on an after-tax basis. If you elect this option, you may continue to submit claims for reimbursement for expenses incurred through the end of the claim period. You must notify Employee Benefits within 60 days of the date of your retirement, termination, or layoff to elect this option.