It has become necessary to permanently eliminate your position due to a significant and unforeseen business circumstance resulting in a company-wide reorganization to cease operations and close the business, including the location at which you work. On August 25, 2016, without previous notice, the Department of Education (the “ED”) notified ITT Educational Services, Inc. (the “Company”) that it is required to meet certain conditions the Company has now determined it is unable to meet. As a result, your employment is being terminated effective September 6, 2016 (“Termination Date”). This notice is being given as soon as it was practicable and there are no bumping rights associated with this elimination.
This memorandum contains important information with respect to the termination of your employment and the post-employment payments and benefits to which you may be entitled so please read it carefully.
a) Final Pay. You will receive your final paycheck for work performed through your Termination Date. Your most recent paycheck covers the period of the two weeks ending September 4, 2016, as well as September 5 and September 6, 2016, your Termination Date. If you do not have direct deposit and have a home address on record with the company in California, Colorado, Illinois, Massachusetts, Minnesota, Missouri, Nevada, Oregon, Texas and Utah, your final paycheck will be sent to your home address. If you do not have direct deposit and live in another state, you final paycheck will be sent to the campus for you to pick up.
b) Vacation Pay. The final paychecks of employees with accrued but unused vacation days include payment for vacation days accrued through their Termination Date that have not been used.
c) Retirement Benefits. Employees who participate in the ESI Pension Plan and the ESI 401(k) Plan will be 100% vested in the plan(s) in which they participate. Click on the link in this email to access our Benefit Status Upon Separation notification that includes contact information for further details.
d) Unemployment Compensation. You will be eligible to apply for unemployment compensation the day following your Termination Date.
e) Continued Medical Benefits. All medical, dental, vision and Flexible Spending Account coverage will end September 6, 2016. You may use this letter as evidence of termination of your benefits as you consider other coverage options.
You may be eligible to continue medical benefits pursuant to the COBRA Act. COBRA questions should be directed to third party administrator Chard Snyder’s Customer Service team at 1-888-993-4646.
You may purchase health insurance through the Health Insurance Marketplace. Your coverage may start the first day of the month after you lose your insurance. The Marketplace can help you evaluate your coverage options, including your eligibility for coverage through the Marketplace and its cost. In the Marketplace, you could be eligible for a tax credit that lowers your monthly premiums and cost-sharing reductions (amounts that lower your out-of-pocket costs for deductibles, coinsurance, and copayments). Through the Marketplace you’ll also learn if you qualify for free or low-cost coverage from Medicaid or the Children’s Health Insurance Program (CHIP).
You have 60 days from the time you lose your job-based coverage to enroll in the Marketplace. After 60 days your special enrollment period ends and you may not be able to enroll until the next open enrollment period. To find out more about enrolling in the Marketplace, such as when the next open enrollment period will be and what you need to know about qualifying events and special enrollment periods, visit www.HealthCare.gov.
Obtaining Your Personal Property. You may collect your personal property from your work location. Your designated time is 9-11 a.m. or 3-5 p.m. Thursday, September 8, 2016, or 11 a.m.-2 p.m. Friday, September 9, 2016. Enter and exit through the front door.
Returning Company Property. You must return to ITT/ESI all ITT/ESI property, including, but not limited to, textbooks, equipment, licenses, cell phones, credit cards, and keys. Please return company property at your work location within your designated hours noted above.
Submitting Expenses for Reimbursement. You may submit legitimate, documented business expenses for reimbursement. Submit reimbursement requests with original receipts at your work location within your designated hours noted above. Reimbursement requests must include the purpose of each expense.
You are personally and solely responsible for paying all charges to your American Express Corporate credit card account with respect to any American Express Corporate credit card issued to you in conjunction with your ITT/ESI employment. You must pay any outstanding charges in full on or before the due date, failing which, ITT/ESI may deduct any balance due on your American Express Corporate credit card account from any pending business expense reimbursement, if you fail to pay such balance when due, in accordance with local law.
Previous Job Elimination Notices. You may have received previous communications about planned terminations of employment. Please be advised that this document supersedes and replaces any such previous communications.
We realize that this will be a difficult time for you; however, we urge you to direct your attention and energies to your future.
If the address on this letter is not your current address, please email your current address to benefitquestions@ittesi.com.
Click on this link for information about benefit status upon separation and other questions.
Thank you for your efforts and contributions in working for ITT/ESI, and I wish you well in your future endeavors. If you have any questions, please contact Human Resources Partner James Anders or Helena Masters at (317) 706-9388 or, for the Online division, HR Generalist Patty Beck at (317) 324-9815.