August 10, 2011

Quitting without notice won’t affect retirement benefits

• Post a comment |
• E-mail |
• Print
• • Share:
  •  
  •  
  •  
  •  
  •  
  •  

Q: You mentioned in your column that Washington State is an “at will” employment state, so my question is this: If I quit my job on the spot, will there be repercussions regarding my future retirement benefits from management, or must I give a standard two weeks’ notice? Will there be any other repercussions? My employer is the University of Washington, a state agency.
-- L.E., Seattle

Kristen says: Two weeks’ notice is generally a courtesy for an amicable parting with an employer. The intention is to use that time to help transition work and finish projects before you leave. “At will” employment, meanwhile, is a concept that states that either party may sever the employment relationship at any time.

If you fail to give two weeks’ notice, you will potentially burn bridges with your employer for future opportunities. If that is not an issue to you, then there are no other repercussions.

Retirement benefits are governed by legal requirements and cannot be rescinded based on the ending of your employment relationship. Your employer must follow all state, local and federal laws when it comes to disbursement. As a state agency, the UW has these guidelines clearly published on its website. You can also find more information on PERS (Public Employees Retirement System) at http://www.drs.wa.gov/member/handbooks/pers/plan-2/default.htm.

Separating from PERS employment means that you are leaving the state employment system. If you are moving into a private-industry position and don’t anticipate returning to the state, or if you’d like to roll over your retirement fund, you can contact the Department of Retirement Systems for instructions on your options. It will have access only to your retirement fund information; your circumstances for terminating your employment should not be visible or affect its interactions with you.

Every employer that offers retirement benefits is subject to state and federal guidelines about the disbursement of those funds. This information should be provided to you when you enroll in the plan. Generally, any money that you contribute to the plan while employed remains yours.

Many employers make matching contributions, and after a certain period of employment, you become vested. This means that your employer’s contributed money joins the funds that you contributed and becomes yours.

When you leave an employer, the money that is vested and your contributions can be disbursed several ways. You can receive it as a lump sum minus federal withholding, or you can roll it over into another employer-sponsored retirement account or a private retirement account. Some employers, including the state of Washington, also allow you to leave the money in the same plan without additional contributions.

• Post a comment |
• E-mail |
• Print
• • Share:
  •  
  •  
  •  
  •  
  •  
  •  

Read more
Recruiter's Inbox, benefits, etiquette

0 Comments

Leave a comment

* required field

Your name: *

E-mail address: (Will not be displayed)

Your comment: *

Captcha:

Type the characters you see in the picture above.