| Contacts | Benefits at Termination | Common Questions Upon Termination |
 |
||
Contacts
MedicalTUFTS Total Health Plan TUFTS Health Plan TUFTS HMO Plan TUFTS Health Plan Tufts Total Health TUFTS Health Plan United Healthcare PO Box 740800 CIGNA Healthcare of North Carolina 800.832.3211 Dental Dental Plan: Delta Dental USA Delta Dental Biogen employees are in the Delta Preferred Plan. Life & Accident Insurance Life and AD&D Insurance Contact for information about: |
DisabilityBroadspire MetPayMetPay Retirement401(k) Savings PlanFidelity Investments Stock Options and ESPP Smith Barney 388 Greenwich Street Technical Support for Benefits Access:888-873-1194 Other Financial Services Metropolitan Credit Union Metro Credit Union Flexible Spending Accounts Health Care Flexible Spending Account (Med-Flex) Tri-Ad Dependent Care Flexible Spending Account (D-Flex) Tri-Ad Tuition Reimbursement Tri-Ad |
Benefits at Termination
Health Insurance Coverage (Medical and Dental):
If you are enrolled in the Medical or Dental plans your coverage will end on the last day of the month in which your employment ends. You may continue this coverage for up to 18 months by electing COBRA. To do so, you must complete an enrollment application and pay the monthly premiums. Detailed information about COBRA coverage will be sent to your home address within two weeks after your last day of employment.
Monthly cost for COBRA is approximately $900 for family coverage, $600 for two person coverage, and $300 for individual coverage. You have 60 days following your last day of employment to elect continuation of health coverage through COBRA.If you elect to continue your health insurance under COBRA, your coverage will be reinstated retroactive to the first of the month following the month in which your employment ended.
LTD/Life/AD&D Coverage:
Long Term Disability coverage ends on your termination date. Life and AD&D (accidental death and dismemberment) coverage, however, will continue for 31 days after your termination date. LTD and Life Insurance can be continued if you convert them into individual policies. AD&D does not have a ‘conversion privilege.’ Information regarding conversions is available upon request. Please note in order to convert LTD coverage you must have 12 months of service prior to termination.
The life insurance plan also has a ‘portability’ feature. This may be a more economical way to take life insurance with you. If the forms were not provided to you when you left the company please contact the HR Help Desk at (617) 679-3400 or at HR_Helpdesk@biogenidec.com . You must submit the life insurance portability forms within 30 days of termination.
Med-Flex and D-Flex:
The last payroll deduction to these accounts will occur with your last paycheck. If you have a balance in either account you may continue to submit claim forms with the appropriate receipts for expenses to ADP Benefit Services. You have until March 31 of the year following the year in which you terminate to submit claims.
Tuition:
If you received a reimbursement for tuition within the last two months after completing the course(s), you will be required to reimburse Biogen for the cost of course, and any reimbursement pending will not be paid. Payroll will process the necessary deductions from your final pay if applicable.
401(k) Savings Plan:
If you participate in the 401(k) Savings Plan and have a vested balance greater than $5,000 you may leave it in the Plan until you retire. Or you can rollover your balance into a qualified plan, such as another employer’s 401(k) or an Individual Retirement Account (IRA). If your vested balance is less than $5,000 then it will be distributed to you either as a lump sum or a rollover to another plan or IRA.
Outstanding loans must be repaid within 90 days following your last day of employment with Biogen Idec, or the loan balance will be treated as a withdrawal and subject to an early withdrawal penalty and tax withholding. Please contact Fidelity (our 401k administrator) at 1-800-421-3844 for your loan balance and other account information, and to initiate a distribution of your vested account balance.
Biogen Idec Retirement Plan:
If you have two (2) or more years of service at Biogen Idec, including service with Biogen before the merger, when you terminate you will be entitled to a benefit under the Biogen Retirement Plan (i.e., the cash balance pension). Distribution forms that explain the amount of your benefit and distribution options will be mailed to your home address several weeks after termination. If your vested balance is less than $5,000 then it will be distributed to you either as a lump sum or a rollover to another plan (e.g., 401k) or IRA.
Employee Stock Purchase Plan (ESPP):
Participants in the ESPP may call Salomon Smith Barney. The phone number is 1-800-367-4777. Biogen Idec is not involved with this account after your last day of employment.
All provisions of the ESPP plan continue to apply for shares purchased before the Biogen Idec merger. For example, the one-year holding period still applies for shares purchased before the merger. If you have ESPP deductions from your paycheck after the merger (November 13, 2003) the new ESPP plan provisions apply (e.g., no one-year hold).
NOTE: Your pre-merger Biogen ESPP shares will convert into Biogen Idec shares on November 13 and 14, 2003. The conversion factor is 1.15, which was communicated in the merger agreement. This means the number of Biogen shares you own will increase by 15% and the share price will decrease by 15%. For example, if you own 100 ESPP Biogen shares at $40.00 before the merger, then after the merger they convert to 115 shares (100 x 1.15) at $34.79 ($40.00 / 1.15).
Stock Options:
You have three months from your date of termination to exercise stock options. Contact Salomon Smith Barney at 1-800-367-4777 if you want information on your options account.
NOTE: Your pre-merger Biogen stock options will convert into Biogen Idec shares on November 13 and 14, 2003. The conversion factor is 1.15, which was communicated in the merger agreement. This means the number of Biogen options you have will increase by 15% and the strike price will decrease by 15%. For example, if you have 100 Biogen stock options at $20.00 before the merger, then after the merger they convert to 115 stock options (100 x 1.15) at $17.39 ($20.00 / 1.15).
Unemployment Insurance Benefits:
Separate information regarding Unemployment Insurance Benefits may be obtained at your exit interview with your Human Resources Consultant. Please review the information and contact the Commonwealth of Massachusetts Division of Employment and Training directly at 1-888-626-5553 (617-626-5553 in the Boston area) if you have questions.
Common Questions Upon Termination of Employment
1. Does my health insurance coverage (medical, dental & vision) end on my last day of work?
Your medical and dental coverage ends on the last day of the month in which you terminate employment. You will receive an information package on COBRA continuation coverage within a few weeks following your termination.
2. Since I will not receive COBRA enrollment information for a few weeks after my termination, what will I do if I need health insurance?
COBRA coverage is retroactive to the day after your active employment coverage ended. Therefore, even if you do not receive the package for several weeks after your coverage ended you may elect coverage that is retroactively effective to the day after your coverage ended and eligible claims will be covered. This means you may have to pay for services out of your own pocket but if you enroll in COBRA they may be eligible for reimbursement.
3. I will be taking off a few weeks before I start my next job, should I elect health insurance through COBRA?
You have 60 days following the date your coverage ends to elect continuation of health coverage through COBRA. Once elected and paid for, the effective data of COBRA is retroactive to the day after your active coverage ended. You may consider postponing enrollment in COBRA if your new employer’s coverage will be effective before the 60-day COBRA election period expires.
4. Will my medical and prescription ID card be inactivated immediately?
No, your coverage and ID cards become inactive on the last day of the month in which you terminate employment. If you enroll in COBRA your ID cards will be reactivated.
5. Will COBRA let me extend my life insurance and long-term disability (LTD) insurance?
No, but there is a way to take these benefits with you after you terminate employment. You have two choices for extending your life insurance. One is the portability feature and the second is the conversion feature. Both options require you to submit the completed forms to the insurance carrier within 30 days of your last day at work. Your LTD benefit may also be ‘converted’ to an individual contract. Contact the HR Helpdesk if you are interested in extending your life and/or LTD benefits.
6. Where can I get my current balance in the retirement plan (pension)?
Access to your retirement account balance is available at http://mybiogenidecaccounts.com. Your employee ID can be found on your pay stub. There is a 10-digit number above your address. The last five digits (including leading zeros) are your Employee ID. Your password was set by you the first time you accessed the account. If you never accessed this account before then your password is the last four digits of your Social Security Number. If you need help contact the HR Helpdesk at (617) 679-3400.
7. I have less than $5,000 in my pension account and the money will be automatically distributed. What can I do with this pension money?
You may rollover your pension account into your new employer’s 401(k), into an Individual Retirement Account (IRA) or take lump sum cash payment. If you take cash and do not rollover into another retirement plan the money will be subject to income taxes plus a 10% penalty.
8. If I have more than $5,000 in my pension account, what will happen to it when the pension plan is terminated?
Biogen Idec announced the termination of the pension plan (the old Biogen Retirement Plan) in October 2003. We expect the Internal Revenue Service (IRS) to approve termination of the plan by the end of 2005, perhaps sooner. Once termination is approved, all vested balances will be distributed to participants. Participants are all current and former Biogen employees. You will receive several pieces of communication from Biogen Idec between now and termination of the plan. See the response to question 6 for your options upon distribution of your pension account.
9. Do I have 90 days or 3 months after my termination date to sell my stock options?
You have 3 months following your date of termination to sell stock options.
10. Employees typically have to wait a year before selling stock bought with the Employee Stock Purchase Plan (ESPP); since I am ending my employment will I be able to sell the shares I bought within the last year?
The one-year holding period still applies to shares purchased under the former Biogen ESPP. Shares purchased under the new Biogen Idec ESPP do not have a one-year holding period requirement.
11. What options do I have for distribution of my 401k account?
If your account balance is less than $5,000 it will be automatically distributed. You may rollover your 401(k) account into your new employer’s 401(k), into an Individual Retirement Account (IRA) or take lump sum cash payment. If you take cash and do not rollover into another retirement plan the money will be subject to income taxes plus a 10% penalty.
If your account balance is greater than $5,000 you may leave it in the Biogen Idec plan or request a rollover from Fidelity at http://401k.com.
12. I believe there is an error on my last paycheck who should I contact?
Please contact the payroll department directly at payroll_helpdesk@biogenidec.com. If there is an error with your vacation payout please have your former Manager reconfirm the number of days you have taken with payroll.