To be eligible for retiree health and welfare benefits, you must meet the following criteria (in addition to age and service credit requirements):
- Have a retirement date that is within 120 days of the date you end UC employment (for Savings Choice participants, the date your retiree health benefits coverage begins will be treated as your retirement date for this purpose)
- Be an active eligible employee enrolled in either UCRP (including Pension Choice) or Savings Choice
- Be enrolled in or eligible to enroll in Full UC employee benefits
- Continue health coverage until your retiree health benefits become effective
Retiree health and welfare benefits are not available to those who elect a UCRP Lump Sum Cashout or to those who take a full refund or rollover of Savings Choice accumulations before beginning retiree health benefits. A partial refund or rollover of Savings Choice account funds will not affect eligibility for retiree health benefits, or retiree health service credit, as long as the DC Plan account maintains a balance of at least $2,000 (with some of that money remaining in the Savings Choice account).
If there is a gap in time between the date you end UC employment and the date your UC-sponsored retiree medical and dental benefits become effective, you may have to pay the full monthly cost for your medical and dental plans (including UC’s contribution) to continue coverage during the gap period and maintain eligibility.
You may also continue your vision and legal insurance during any gap period to ensure continuing coverage. If you don’t continue vision and legal coverage during this gap, though, you may add coverage during a future Open Enrollment period (if the plan is open). Retiree accidental death & dismemberment insurance can be added at any time.
For questions about eligibility or for more information about these benefits, contact the Retirement Administration Service Center (RASC).
Currently, UC shares the monthly cost of medical and dental coverage with eligible retirees, up to a maximum UC contribution that varies each year depending on overall costs. Retirees may be eligible to receive from 5% to 100% of UC's maximum contribution to premiums — this is known as "graduated eligibility."
The amount UC will contribute depends on the date you became eligible for benefits (or your rehire date if you incurred a break in service of more than 120 days), the amount of service credit you have earned and your age at retirement.
See the graduated eligibility rules that apply to you, depending on when you were hired or rehired.
How the UC contribution is applied to retiree medical benefits
The UC Davis Health Care Facilitator page includes a premium estimator to help you understand what your share of your retiree medical premium might be. The numbers in the examples below are for illustrative purposes only and are not actual premiums or contributions.
Example 1: Contributions and premiums for non-Medicare plans
|
Eligible for 100% of UC Contribution |
Graduated eligibility: 75% of UC contribution |
Graduated eligibility: 50% of UC contribution |
Total monthly premium |
$575 |
$575 |
$575 |
UC Contribution |
$450 |
$337.50 |
$225 |
Your monthly premium |
$125 |
$237.50 |
$350 |
Example 2: Contributions and premiums for Medicare plans
|
Eligible for 100% of UC Contribution |
Graduated eligibility: 75% of UC contribution |
Graduated eligibility: 50% of UC contribution |
Total monthly premium |
$250 |
$250 |
$250 |
UC Contribution |
$350 |
$262.50 |
$175 |
Your monthly premium |
0 |
0 |
$75 |
Medicare Part B reimbursement* |
$100 |
$12.50 |
0 |
* If UC’s contribution to your medical plan is greater than the premium, UC reimburses you for a portion of the standard Medicare Part B premium you pay for Medicare coverage, usually as a deduction from your Social Security benefit.