Facing a layoff

If layoffs become necessary, decisions are made based on criteria set by the policy or collective bargaining agreement that governs your employment. Criteria for layoffs generally include your relevant skills, knowledge, abilities, documented performance and length of service.
 
You may also have the right to a certain notice period, pay in lieu of notice, or recall rights. These rights vary based on the policy or collective bargaining agreement that applies to you.

We understand how important your benefits are for you and your family, so we want you to understand your options.

Here’s how to handle specific benefits in preparation for a layoff.

Medical, dental and vision

If you would like to continue these benefits for up to 18 months for yourself and/or eligible family members, you can apply for COBRA continuation coverage. WEX Health, a company that handles COBRA for UC, will send you an information packet with instructions. You’ll send the enrollment forms and premiums directly to WEX Health. You have 60 days from the date you lose coverage (or 60 days from the date you receive notice from WEX Health of your eligibility for COBRA, if later) to apply. If you’re enrolled in UC Blue & Gold or Kaiser, you may be able to continue medical coverage (but not dental or vision) for another 18 months under CalCOBRA. You’ll need to apply within 31 days after your COBRA coverage ends.

Two key points:

1. You must apply for COBRA coverage within 60 days of the date you lose coverage; and
2. COBRA coverage requires you to pay the full premiums associated with ongoing benefits, both your portion and UC’s. For most benefits, if you decide not to continue coverage, or you don’t pay the premiums on time, coverage will end on the last day of the last month for which premiums have been paid.

For medical coverage only, another possibility is to apply — within 31 days after your group coverage ends — for conversion to an individual policy. Or you may apply to the insurance carrier directly for individual coverage, which could provide better benefits for less. The Affordable Care Act’s health insurance exchanges might also provide options. For some benefits, you also have the option to apply for conversion to an individual policy. This type of coverage, though, is likely to be more expensive and provide fewer benefits than your UC plan did.

UC Health Savings Plan: If you’re enrolled in the UC Health Savings Plan, your Health Savings Account belongs to you, and you can use it to pay for eligible expenses after you leave UC employment. You can continue to contribute to your HSA as long as you are covered by the Health Savings Plan or any qualified high-deductible health plan. Your HSA contributions through payroll deduction end with your last paycheck. However, if you have not yet reached the IRS maximum contribution limit allowed for the year, you can still make contributions directly to HealthEquity. Call HealthEquity for more information at 1-866-212-4729 at any time.

Legal

To apply for conversion to an individual policy, contact ARAG directly within 31 days after UC coverage ends.

Life Insurance and Accidental Death and Dismemberment 

If you’re enrolled in Basic Life only, you may continue Basic Dependent Life; if you’re enrolled in and continue Supplemental Life, you may continue Basic Dependent Life or Expanded Dependent Life. When your group coverage ends, you have 31 days in which to apply for conversion to an individual policy or port (or continue) your coverage.

For AD&D, you have 31 days from the time your group coverage ends in which to apply for conversion to an individual policy.

Accident, Critical Illness and Hospital Insurance

Coverage ends on the last day of the month in which you are laid off. You may continue coverage through porting. Call Prudential customer service toll-free at (855) 483-1438, 8 a.m.–6 p.m. Monday–Friday (PT) to port your coverage.

Disability, business travel accident and workers’ compensation 

Remember that your coverage ends your last active day at work. The exception is if you’re a UC police or fire employee; you may remain eligible for Workers’ Comp for certain medical conditions for up to five years after UC employment ends.

DepCare and Health flexible spending accounts

If you’d like to continue Health FSA coverage through COBRA, you can continue to participate through Dec. 31 of the current plan year by making direct after-tax payments to your account.  You cannot continue the DepCare FSA.

For both accounts, be sure to submit expenses by April 15 of the following year or you’ll forfeit funds left in the accounts. For DepCare, or if you don’t continue health FSA coverage through COBRA, you can be reimbursed for eligible expenses you incur through the end of the pay period in which you made your last contribution. If you have questions, your benefits representative can help.

Auto and Homeowner insurance 

Contact the carrier if you want to continue coverage to the end of the year by paying premiums directly.

Vacation and sick leave balances

You’ll be paid for any vacation leave you’ve earned through your last day at work. Except as stated below, sick leave will end as of the last day of your UC employment.

If you’re rehired during a Right to Recall and Preference for Reemployment period, your sick leave will be reinstated. If you retire within 120 days of your layoff and choose monthly retirement income, unused sick leave will be converted to retirement service credit at the rate of eight sick leave hours for one day of service credit.

Unemployment insurance

Contact your state unemployment office to find out if you’re eligible. Certain restrictions may apply if you choose to be laid off or don’t exercise your employment seniority rights.

If you have a service credit purchase in progress and are making monthly payments, you will receive proportional service credit or a proportional reduction in your Plan 02 or leave offset.

If you have made 12 or more monthly service credit purchase payments, you may make a lump sum, after-tax payment to complete your purchase. You must make the payment within 60 days after leaving the university, and payment is subject to the IRC 415(c) annual limit in most cases.

If you can meet UCRP vesting requirements only through service credit purchase, you may be able to complete a purchase by making a one-time, lump-sum payment before you leave university employment. Your payment options may include a lump sum after-tax payment, a trustee-to-trustee transfer from the UC 403(b) or 457(b) Plan, or a rollover from a UC plan or another qualified plan.

If you choose Right to Recall, leave money in UCRP or continue your health benefits, you’ll need to notify UC any time you change your permanent address. If you’re continuing your health benefits, a change in your permanent address may affect your eligibility for health plans that have a service area. You can change your address online by signing in to your benefits accounts.

For UCRP, you can update beneficiaries any time online — before or after you leave UC — on UC Retirement At Your Service (UCRAYS) or via the UBEN 117 form. For your Retirement Savings Plans, contact Fidelity.

You may be able to reinstate benefits such as sick leave and purchase UCRP service credit for the time you were away.