Employee Departure Checklist – Employee Responsibilities

Issue/Question

What steps do I need to take if I am departing USD?

What do I need to know if I am leaving USD?

Are there things I need to do after I resign from my position?

Environment

  • Retirement
  • Health Insurance
  • Benefits

Cause

An employee is leaving USD and needs to know what steps they need to take or important information they need to know for their departure.

Resolution

Submit a Resignation Letter
  • Once you have confirmed your plan to leave the University, you will need to submit a resignation letter to your supervisor.   The letter should include:
  • Your last working day
  • A forwarding mailing address, if applicable
  • A personal e-mail address
  • If you accrue annual leave and have been employed longer than 6 months, you will need to indicate if you want your leave in a lump sum payment or carried out. 
  • Please view the Leave Payout Information and Options below for more information.
Leave Payout Information and Options
  • Annual Leave Payouts (for employees who have 6 months or more of continuous service):
    • Lump Sum Payment Option: All unused annual leave hours are added to your final paycheck.
    • Example: Your last working day is June 21st.  You choose the lump sum option.  Your last paycheck will be at the end of June, and your insurance would end June 30th.  Any remaining leave would be paid out in one lump sum on the June pay check.
    • Carry Out Option: The primary purpose of this option is to extend health insurance benefits.  Annual leave is utilized after your last working day in order to extend your employment.  Leave is carried out until the initial remaining amount is exhausted.
    • Example: Your last working day is June 21st.  You choose to carry out your annual leave.  The leave you had remaining carries you through July 15th.  Your last paycheck will be at the end of July, and your insurance would now end July 31st.
  • Sick Leave Payouts
    • Sick leave is paid out to leave eligible employees who have completed 7 or more years of continuous service with the University.
    • One-fourth of accrued sick leave (up to 480 hours) will be paid out on the employee's last paycheck.
    • The accrued leave is paid at the rate of pay as of the employee's last day on payroll
    • Sick leave cannot be carried out
  • Special Pay Plan
    • When certain criteria are met, an employee’s leave payout will go directly into South Dakota Retirement System’s Special Pay Plan.  This happens when:
      • The employee is aged 55+
      • The leave payout will be $600+
    • The Special Pay Plan is a tax deferred plan
    • The State pays the fee for the first year of the account.  The employee would be responsible for working with SDRS to either continue holding the money in the account or understanding distribution options.
    • Payroll will send the employee paperwork and information related to the Special Pay Plan prior to their last paycheck
Provide Forwarding Contact Information
  • Email HR your new mailing address, personal email, and phone number, if not included in your resignation letter
  • This ensures delivery of your W‑2, COBRA notice, and any final documents
  • Update HR promptly if you move after separation
Contact Your Retirement Plans
  • If you are retiring or leaving USD, contact your retirement plan providers to review your options:
  • South Dakota Retirement System (SDRS – Pension):
    • Phone: 605‑773‑3731 | Toll‑free: 1‑888‑605‑SDRS (7377)
    • Website: sd.gov/sdrs
  • SDRS Supplemental Retirement Plan (SRP – 457(b)):
    • Phone: 605‑224‑2230 | Toll‑free: 1‑800‑959‑4457
    • Website: srp457.com
Confirm Your Insurance End Date
  • Your USD health insurance ends on the last day of the month in which you are last paid, not your last working day.
  • Example: If your last paid date is October 15th, your last paycheck will be at the end of October, and your coverage ends October 31st. If your last paid date is November 1, coverage ends November 30th.
  • Prior to your final paycheck, the Payroll office will send you a letter with a confirmation of when your insurance ends, retirement information, and relevant contact information for your benefits.
  • After coverage ends, you may elect COBRA or enroll in other coverage.
  • COBRA allows you and your dependents to continue group health coverage for a limited time after employment ends.
  • Coverage typically lasts 18 months for job loss; up to 36 months for certain dependent events.
  • A COBRA election packet will be mailed to your address on file after your termination is processed.
  • If you don’t receive the COBRA information, please contact the Bureau of Human Resources at 605-773-3148
9-Month Faculty and Summer (Deferred) Pay
  • For 9‑month faculty who are departing (not retiring):
    • Deferred pay continues through summer, and insurance continues through summer
    • Example: If you leave after spring term, pay continues through 8/21, and insurance ends 8/31
    • HR will confirm your exact dates based on your appointment and payroll calendar
    • For 10 and 11 month faculty
Repay Moving Allowance if Applicable
  • Under SD Administrative Rule 05:01:07:10, if you voluntarily leave USD within 24 months of employment, you must repay the moving allowance you received
  • The amount you will need to repay is prorated based on the length of time you have been employed.  Please review the chart in the administrative rule for more information
  • Contact HR to review your agreement and arrange repayment
Access Your W‑2 After Employment Ends
  • Most employees can retrieve their W‑2 electronically via USD’s payroll portal if access was set up before departure.
  • Otherwise, a paper W‑2 will be mailed to your forwarding address.
  • If you did not receive a W-2 or need a re-print, please visit the
Return All USD Property
  • Before your last day, return any USD property including:
    • Keys, key cards, and ID badge
    • Laptops, desktops, monitors, docking stations, and mobile devices
    • Parking passes and building access items
Transfer Timesheet Approval Responsibilities
  • If you supervise staff or students, work with your supervisor and HR to reassign timesheet approval before your last day.
  • Ensure delegations in the HR/payroll system are updated to avoid payroll delays.
Consult Visa Services if You Hold International Status
  • If you hold J‑1, H‑1B, or other employment-based status, your departure affects visa timelines and compliance
  • J‑1 employees: Gallagher International Center — 605‑658‑6255, isso@usd.edu
  • H‑1B employees: System International Employment Services — 605‑688‑6949
  • Also contact HR to align employment end dates with immigration requirements

Please contact the Human Resources if you need further assistance

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