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:

These 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.

Eligibility

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).

UC’s Contribution to Medical and Dental Premiums

Currently, UC contributes toward the monthly cost of medical and dental coverage for eligible employees. 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) and the amount of service credit you have earned.

UC’s contributions are not part of your vested, or guaranteed, retirement benefits and are therefore subject to change. These benefits are subject to collective bargaining. If you're in a union, consult your collective bargaining agreement for details.

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.

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:

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

How the UC contribution to medical and dental premiums works

Currently UC contributes to the cost of medical and dental premiums for eligible retirees. The amount of the contribution is determined annually, depending on state funding and other factors. It is not a guaranteed benefit and could be discontinued at any time.

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.


Non-medicare plan

  Eligible for 100% of UC Contribution Subject to graduated eligibility; receiving 50% of UC contribution Subject to graduated eligibility; receiving 75% of UC contribution
Total monthly premium $575 $575 $575
UC Contribution $450 $225 $337.50
Your monthly premium $125 $350 $237.50


Medicare plan

  Eligible for 100% of UC Contribution Subject to graduated eligibility; receiving 50% of UC contribution Subject to graduated eligibility; receiving 75% of UC contribution
Total monthly premium $250 $250 $250
UC Contribution $350 $175 $262.50
Your monthly premium 0 $75 0
Medicare Part B reimbursement* $100 0 $12.50

* 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.