Benefit Termination Letter

A benefit termination letter serves two important purposes. First, it warns recipient(s)they will lose a benefit they may depend on. Second, it provides them with the contact information needed to secure another resource for the benefit if possible.

Format and Content

The benefit termination letter format may be used to notify employees or a former employee about the termination of a specific benefit. For example, it may be used to notify a former employee that his or her employer-sponsored insurance benefits are ending. The letter should clearly identify the benefit, the date it will end, and the contact information for an alternative resource if applicable. Write the letter on company letterhead and send it in well in advance of the benefit termination date.

Sample

The employee in this benefit termination letter sample was fired for misconduct. She is warned that her medical, dental and vision coverage under the company’s group plan will expire in 30 days. She is told that she may not qualify for COBRA and directed to call the COBRA administrator directly if she has any questions.

Dear Ms. Pearson,

This letter is to inform you that on September 12, 2013, you will no longer be for eligible for healthcare coverage under Parklane Communications group insurance policy. The termination of your coverage is based on your dismissal from the company on August 10, 2013 for misconduct.You will receive a certification of prior coverage by mail. On the date specified above, you will be discontinued from all programs in which you are currently enrolled. A detailed account and explanation of this decision is included with this letter and summarized below.

You are currently enrolled in the company’s health, dental and vision plans. Your benefits under each plan will be terminated on September 12, 2013. This termination of benefits applies to any dependents that are currently enrolled in the plan. You were mailed a package explaining the continuation of coverage under COBRA. If you elect to continue your group insurance under COBRA, you may apply for conversion to an individual policy when your COBRA coverage expires. You may also exercise this option to apply for conversion now.

Although we mailed you the COBRA continuing coverage information, we in no way guarantee that you are eligible for this coverage. You are responsible for all premiums under COBRA. If you have any questions concerning COBRA we ask that you direct them to the COBRA administrator at HR Trust Company, 4700 Lexington Avenue, New York, NY 78263. You may reach the administrator by phone at (555)-555-5555, extension 9.

If you have any questions pertaining to the content of this letter please address them to Employee Benefit Services at (555)-555-5555. Your employee file will remain open with this office for 60 days from the date of this letter.

Regards,

Keith Moore

CEO

Parklane Communications