The “No lapse in pay” retirement option

If you’re approved for “no lapse in pay,” you’ll be notified by email and through your UCRAYS account. Since you’re guaranteed a benefit payment on August 1, you will no longer see the Retirement Application Progress tracker on the UCRAYS home page. Pay attention to your UCRAYS secure messages, though, in case there are questions about your application.

Your August 1 payment will be either your calculated benefit amount or your estimated benefit as it appeared on your Personal Retirement Profile; for most members these two amounts are identical. If there are differences between the estimated benefit and the calculated amount, your benefit payment and premium deductions will be adjusted by the October 1 payment.

This option is only available for retirements at the beginning of January or July 1 which do not require special processing.

Unfortunately, a number of circumstances can make a prospective retiree ineligible for “no lapse in pay,” such as:

• You are choosing a lump sum cashout
• You have reciprocity with CalPERS or CalSTRS
• You have UCRP service credit in more than one retirement tier
• Your UCRP benefit is subject to the Section 415 limit
• You have a legal obligation to divide your UCRP benefits (for example, in the event of a divorce, legal separation or termination of a domestic partnership) that has not been finalized

If you think you may qualify and would like to apply, click the “No Lapse in Pay” opt-in box when you begin the retirement process in UC Retirement At Your Service (UCRAYS). You can also submit the No Lapse in Pay Request form (U168), but completing the process online is much easier and more efficient.

To be approved, the RASC must receive your No Lapse in Pay electronic opt-in or form, your signed Monthly Retirement Income election and all required documentation (submitted via UCRAYS secure message or eFax) by the appropriate deadline.

It is UC’s goal to process your retirement and provide a statement confirming your retirement benefit within 45 business days of receiving your signed election. Please note that delays in receiving your required documentation can delay the process.

For all prospective retirees, it’s important to prepare ahead of time and stay on top of the retirement process. Please note the important dates and deadlines below.

Whenever you plan to retire, taking the steps below as soon as possible will make the process easier:

• Gather required documentation — such as acceptable evidence of birth (for a spouse, domestic partner or a contingent annuitant), marriage and/or domestic partnership — so your retirement won’t be delayed if you need to order a replacement copy.
• If you may be eligible for Medicare, read the Medicare Fact SheetPDF to find out what you need to do to enroll and coordinate with your UC medical plan.
• If you have service credit with CalPERS or CalSTRS, read the fact sheet on UCRP/CalPERS ReciprocityPDF or on UCRP/CalSTRS Concurrent RetirementPDF to learn more about your eligibility and any additional steps you need to take.
• If you may be required to divide property due to a divorce, legal separation or termination of a domestic partnership, check with your legal advisor to make sure you have the documentation you need. See the Qualified Domestic Relations Order (QDRO) Fact SheetPDF for details. 
• What to do when you’re preparing for retirement is a step-by-step guide to the retirement process, with links to the resources you’ll need along the way — whether you choose to retire using UCRAYS (your most efficient option) or paper forms.
• Register for a live retirement planning webinar:
  • Preparing for Retirement — offered the first Tuesday of each month from 10 a.m.–12:30 p.m.
  • Retiree Health Benefits — Frequently Asked Questions — offered the third Wednesday of each month from 2-4 p.m.
  • The UC Retirement Process – Step by Step: offered monthly on Thursday mornings,  10 a.m.–11:30 p.m. and Wednesday evenings, 5:30–8 p.m. 

RASC’s hours are expanding on April 1, 2024! Call 1-800-888-8267, Monday–Friday, 7 a.m. to 4:30 p.m. (PT) to speak to a UC Retirement Administration Service Center representative. You can also send a secure message through UCRAYS.

Schedule a retirement counseling appointment online at rasc.universityofcalifornia.edu/retirement-counseling.