When you leave Lam, your coverage for medical, prescription, dental, vision, and Employee Assistance Program (EAP) benefits ends on the last day of that month. All other benefits, including life and disability benefits, end on your last day of employment. You have options for continuing or converting some of your benefits.
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Continuing health coverage under COBRA
Your current medical, prescription, dental, vision, and EAP coverage will end at the end of the month in which you terminate employment.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), you and/or your covered dependents can continue medical, dental, vision, EAP, and virtual physical therapy coverage, and your Health Care Flexible Spending Account (FSA).
What to know about COBRA
- PlanSource handles the administration of COBRA for Lam and eligible participants.
- If you or a family member is eligible for COBRA, you’ll receive an enrollment packet from PlanSource at your home address with instructions to make your COBRA elections. This packet usually arrives about 2–3 weeks after your termination.
- You have 60 days from the date of your notification letter or coverage-end date (whichever is later) to enroll in COBRA and 45 days to make your first payment after your election. You can continue the same plans for medical, dental, and vision that you were enrolled in as an employee. You can select different coverage tiers (individual or family coverage) for medical, dental, and vision based on your individual needs. This will be detailed in your COBRA packet.
- If you decide to enroll in COBRA coverage, you’ll pay the full cost of coverage.
- COBRA coverage is generally available for up to 18 months, with additional extensions available under certain circumstances.
- You may want to research other coverage available through the health insurance marketplace. You may qualify for lower monthly premiums. Learn more about your options at healthcare.gov.
Health Care Flexible Spending Account (FSA)
You have 90 days following your termination date to request reimbursement for eligible expenses incurred through your termination date.
If you enroll in COBRA, you can continue your Health Care FSA benefits through the end of the calendar year. You can’t claim FSA expenses incurred after your last day at Lam unless you enroll in COBRA.
Employee Assistance Program (EAP)
You can also enroll in COBRA EAP coverage, and your benefits will continue for you and any dependents enrolled in COBRA. Otherwise, access to the EAP ends on the last day of the month in which your employment with Lam ends.
What happens with other benefits
Here’s what to expect for your other benefits when you leave Lam.
Health Savings Account (HSA)
If you’re enrolled in the Anthem or Kaiser CDHP with a Health Savings Account, your HSA belongs to you, and you can continue using it for eligible expenses. Contact Optum Financial (866-808-5214) for information about keeping, closing, or rolling over your HSA. A monthly service charge will apply if you keep your account with Optum Financial. Once you leave Lam, you will no longer receive the company HSA contribution.
Your access to Health Advocate will end at the end of the month in which you terminate employment. You can continue to work with Health Advocate to resolve any case that was opened before your termination date.
Virtual physical therapy
Your virtual physical therapy benefits through Sword Health will end at the end of the month in which you terminate employment, unless you elect COBRA medical coverage.
Dependent Care Flexible Spending Account (FSA)
Your Dependent Care FSA contributions will stop with your last regular paycheck. You’ll be able to use the money in your account until the end of the calendar year. After that, you’ll forfeit whatever remains in the account. You can submit claims through March 31 for expenses incurred through the previous December 31.
Life, accidental death and dismemberment (AD&D), short-term disability (STD or California VDI), and long-term disability (LTD) insurance
Your life and AD&D insurance (and any dependent coverage), STD or VDI, and LTD insurance coverage ends on the day your employment terminates. You will receive information from The Standard about how to convert or keep your life insurance after your employment with Lam ends.
If you are receiving disability benefits at the time of your termination of employment with Lam, you may be eligible to continue to receive payments in accordance with the terms of the plan. Please contact TRISTAR at 844-610-1885 for STD or VDI benefits, or The Standard for LTD benefits.
Voluntary supplemental medical benefits
If you’re enrolled in accident, critical illness, or hospital indemnity insurance, you will receive information from MetLife about how to continue coverage.
You may be able to keep your 401(k) account at Fidelity; however, you can’t contribute to the plan after your termination date.
If your account balance is $1,000 or less, a distribution is required. If your account balance is more than $1,000, you can elect one of the following options:
- Leave your money in the plan with Fidelity to distribute later.
- Request a direct rollover to an IRA.
- Request a direct rollover to another employer’s plan.
- Have your account balance paid to you, subject to 20% income tax withholding and possible penalties. The distribution is taxed in the year you receive it, unless you roll over the funds within 60 days to an IRA or another qualified retirement plan.
You must wait 15 days after your termination date before you can withdraw funds from your account.
Due to possible adverse tax consequences, consult with your tax advisor regarding your options. If you currently have a loan outstanding from your 401(k) account, you can contact Fidelity to continue loan repayments directly through Fidelity or pay off your loan within 90 days after your termination date. Failure to do so may require your unpaid loan balance to be treated as a taxable distribution, and additional penalties may apply. The remaining balance in your account will be processed according to the distribution option you choose.
Fidelity will send you instructions that outline your options. For more information, contact Fidelity at 800-835-5095, or visit 401k.com.
Employee Stock Purchase Plan (ESPP)
If you participate in the ESPP, any contributions you made that have not been used to purchase shares will be refunded to you on your final paycheck. More information is in the departing employee memo from Employee Shareholder Services. For questions, contact Payroll at 855-327-8920, or email Helpdesk.Payroll@lamresearch.com.
RSUs and stock options
Unvested RSUs and stock options will be canceled at termination. Generally, vested stock options are exercisable within 90 days from your termination date. You can continue to use your Fidelity account after you are no longer employed by Lam. More information is in the departing employee memo from Employee Shareholder Services.
Elective deferred compensation plan (EDCP)
If you are a plan participant, a determination of distribution status will be made at the time of your employment termination. For more information, contact Empower at 800-824-0040 or through the Contact Us link on the participant website.
You have 15 days from your termination date to submit a claim to Optum Financial to be reimbursed for eligible expenses incurred before your termination date.
Your company-paid Virgin Pulse membership ends for you and any enrolled family and friends on your termination date.
Above and Beyond recognition program
To redeem any remaining recognition points after your termination date, contact Workhuman customer service at 844-732-5501.
If you have a pending commuter order, it will be completed if your termination date is after the 10th of the month. If you have a commuter account credit, contact Optum Financial for information about using your remaining balance.
You will not be eligible to receive reimbursement for classes you are currently attending unless one of these circumstances applies:
- The class was previously approved by your manager, and the reason for your employment termination is a reduction in work force.
- The class was previously approved by your manager, and the reason you enrolled in the class was at the direction of the company to retain employment at that time.
Student loan assistance
You will receive instructions from Lam to repay all payments made under the student loan assistance program in the 12 months prior to your voluntary termination.
No repayment will be required if you are terminated due to a reduction in force or other business condition or reason outside of your control.
You have 15 days after your termination date to submit reimbursement requests for eligible adoption expenses. You can’t claim expenses incurred after your last day at Lam.
Identity theft protection
LifeLock identity theft protection coverage ends on your termination date. To convert your coverage to an individual plan, contact NortonLifeLock at 866-456-9316.
Group legal plan
Coverage in the ARAG group legal plan ends on your termination date.
Auto, home, and pet insurance
If you’re enrolled in auto, home, and pet insurance, you will receive information from MetLife about how to continue coverage.
Your company-paid Care.com membership ends on your termination date.
- California residents: Visit edd.ca.gov.
- Oregon residents: Visit oregon.gov/EMPLOY.
- In all other states, visit your local employment development department for information related to unemployment insurance benefits.
Health Insurance Premium Payment (HIPP) program
The Health Insurance Premium Payment (HIPP) program is a Medicaid program that allows a recipient to receive free private health insurance entirely paid by their state’s Medicaid program. HIPP information will be included in your COBRA packet.
You can learn more on these websites or the HIPP site for your state:
If you return to Lam
If you return to Lam Research in a regular full-time position, within two years of your termination date, your service will be bridged for purposes of paid time off (PTO) and service recognition. This does not apply to any other benefits or rewards programs at Lam or any subsidiary.