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What to do when you’re

Leaving UC employment

We’re sorry to see you go, and we wish you the best. Here are a few things you need (or may want) to take care of before you leave. For more details about what happens to your benefits when you leave UC, see the Termination of Employment Benefits PDF fact sheet.
Depending on your circumstances, you may want to talk with your Human Resources representative about your possible eligibility for disability, retirement and/or other benefits. 

Continue the health insurance coverage you need.

Your participation in UC-sponsored benefits plans usually stops on the last day of the last month for which you have an eligible appointment and you’ve paid premiums. However, you may be able to continue your medical, dental and vision coverage by signing up for COBRA health insurance continuation or by converting coverage to individual plans. Learn more about COBRA here or contact your local benefits office.

Your insurance providers will have details about converting to individual plans. You may also want to explore your options through the health insurance marketplace established under the Affordable Care Act. In California, you can find information at www.coveredca.com.

Understand your options for other UC insurance coverage

Your options for continuing other coverage depend on the plan.

If you leave UC employment, you’re no longer eligible for the UC-sponsored basic or voluntary disability plans. Coverage ends on your last day actively at work.

Use your FSA funds

Your Dependent Care flexible spending account (FSA) ends when you go off pay status and may not be continued. You may be reimbursed for eligible expenses you incurred through the end of the pay period for which you made your last contribution. You have until April 15 of the next year to submit claims for reimbursement. You must forfeit any funds you don’t claim by the deadline.

The same rules apply to the Health FSA, but you may continue to participate in the Health FSA for the remainder of the plan year under COBRA. Learn more about COBRA here or contact your local benefits office.

Decide what to do with your primary retirement benefits

When you leave UC employment, you’ll stop making contributions for your primary retirement benefits, and you’ll stop accruing service credit.

Learn more about retiree health eligibility.

Understand your retirement savings plan options

Your contributions to the 403(b), 457(b) and/or DC Plans stop with your last paycheck. If your balance in a plan is at least $2,000, you can keep your money in the plan and continue to take advantage of the benefits of UC’s Retirement Savings Program.

If you have less than $2,000 in a plan when you leave UC employment, you may no longer keep the money in the UC Retirement Savings Program. Plan balances may not be combined to meet the $2,000 minimum balance requirement. If you do not make arrangements for a distribution, your accumulation will be either:

  • Rolled over to an IRA custodian in an account maintained for you, if your balance is more than $1,000.
  • Paid directly to you at your address of record, if your balance is $1,000 or less. There may be tax penalties. See Fidelity Retirement Services for more information.

Arrange to pay back your 403(b) loan, if you have one

If you are repaying a 403(b) loan, you must arrange with Fidelity Retirement Services to make monthly payments or repay the loan in full within 90 days of your last day on pay status. If you do not take any action, the outstanding principal will be reported as a distribution and will be subject to income tax and (if applicable) state and federal penalties.

Update your beneficiaries

For UCRP and CAP, you can update beneficiaries any time online. For retirement savings accounts, contact Fidelity.

Keep your UC connections

Even though you’re leaving UC, there are some very good reasons to stay connected:

  • If you leave money in UCRP, you’ll need to notify UC any time you move.
  • You can continue to access important records (such as your W-2 form) through the UCPath Former Employee Access site. You’ll need to register and create a user account (with a non-business email address) to access your information. See UCPath online for former employees for more information.

Last steps

Return any UC items related to your job such as keys, laptop, access cards, mobile phones, etc. Leave phone and email messages informing contacts who to go to after your departure.

Thank you for your service to UC!