When you retire or begin receiving disability income under UCRP, you may be eligible to continue your UC-sponsored health and welfare coverage. Benefits you may continue include:

UC offers a Medicare Coordinator Program (administered by Via Benefits) to retirees and to families whose members are all eligible for or enrolled in Medicare and live in a state outside California.

Retiree health and welfare benefits are separate from your primary retirement benefits and are not a vested benefit. That means these benefits are not guaranteed and that UC’s contributions to the cost of these benefits may change or be discontinued at any time. 

These benefits are subject to collective bargaining. If you're in a union, consult your collective bargaining agreement for details.

Your eligibility for retiree health and welfare benefits

It's important to understand the rules that determine whether you are eligible to continue your UC-sponsored health and welfare coverage and the amount UC may contribute toward your medical and dental premiums.

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.

Examples of how the UC contribution is applied to retiree medical benefits

The numbers are for illustrative purposes only and are not actual premiums or contributions. 

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

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.

Eligibility guidelines depending on when you were hired (or rehired)

If you enroll in UC primary retirement benefits on or after July 1, 2013 (or are rehired into an eligible position after that date following a break in service of more than 120 days), you are eligible to enroll in retiree health benefits provided you are 55 or older and have at least 10 years of service credit at the time you retire. If you retire at age 56 or older, you will receive a percentage of UC’s contribution toward monthly premiums based on your age and years of retiree health service credit at retirement.

To receive the maximum UC contribution, you need to retire at age 65 with 20 or more years of service.

See the chart below for the percentage of the UC contribution for all eligible ages and years of service credit.

This chart also applies to you if you have a break in service of more than 120 days after June 30, 2013.

Graduated eligibility for 2013 or 2016 Tier
Service Credit 55* 56 57 58 59 60 61 62 63 64 65
10 0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
11 0% 5.5% 11.0% 16.5% 22.0% 27.5% 33.0% 38.5% 44.0% 49.5% 55.0%
12 0% 6.0% 12.0% 18.0% 24.0% 30.0% 36.0% 42.0% 48.0% 54.0% 60.0%
13 0% 6.5% 13.0% 19.5% 26.0% 32.5% 39.0% 45.5% 52.0% 58.5% 65.0%
14 0% 7.0% 14.0% 21.0% 28.0% 35.0% 42.0% 49.0% 56.0% 63.0% 70.0%
15 0% 7.5% 15.0% 22.5% 30.0% 37.5% 45.0% 52.5% 60.0% 67.5% 75.0%
16 0% 8.0% 16.0% 24.0% 32.0% 40.0% 48.0% 56.0% 64.0% 72.0% 80.0%
17 0% 8.5% 17.0% 25.5% 34.0% 42.7% 51.0% 59.5% 68.0% 76.5% 85.0%
18 0% 9.0% 18.0% 27.0% 36.0% 45.0% 54.0% 63.0% 72.0% 81.0% 90.0%
19 0% 9.5% 19.0% 28.5% 28.0% 47.5% 57.0% 66.5% 76.0% 85.5% 95.0%
20 or more 0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

* Those who retire at 55 are eligible to enroll in UC-sponsored health insurance for retirees but will not receive a UC contribution.

If you became a member of UCRP between Jan. 1, 1990 and June 30, 2013, the UC contribution toward medical and/or dental plan monthly premiums is based on the following formula:

Graduated eligibility for those hired between Jan. 1, 1990 and June 30, 2013
Years of UCRP
Service Credit
Percentage of UC Contribution
5-9 If age plus years of service is at least 75 then 50%; otherwise not eligible
10 50%
11-20 Increases from 50% by 5% per year to 100% at 20 years

This chart also applies to all Safety members.

    If you became a member of UCRP before Jan. 1, 1990, and you have not had a break in service of more than 120 days, you will receive 100 percent of UC’s contribution toward the medical and/or dental monthly premiums if:

    • You retire before age 55 and have at least 10 years of UCRP service credit (five years for Safety members)
    • You retire at age 55 or later and have at least five years of UCRP service credit