Leaving UC employment

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 some benefits for a limited time depending on the circumstances of your departure. In some cases this means signing up for COBRA health insurance continuation. You may also need to consider converting coverage to individual plans. 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.

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 ends 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.

For AD&D, coverage ends the last day of the last month for which you have an eligible appointment and premiums are paid. You may convert this coverage to an individual policy as long as you apply for conversion for you and eligible family members within 31 days of leaving UC. Please note that individual policies are generally more expensive and offer fewer benefits.

With regard to legal insurance, you may be able to buy an individual policy on a direct-pay basis directly from ARAG, the university’s legal coverage provider. Contact ARAG for details and more information.

Your Dependent Care FSA ends when you go off pay status and may not be continued, and 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.

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. 

Supplemental Health Plans: Coverage ends on the last day of the month in which you end your employment with UC. You may continue coverage through porting. Contact the UC Plus customer service team directly to port your coverage.

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.

Your access to Bright Horizons Additional Family Supports ends when you leave UC employment. If you want to continue to use this resource, contact Bright Horizons Additional Family Supports about a paid membership.

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.

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.

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

If you are a UCRP (including Pension Choice) member, you are vested after you have accrued five years of service credit. You may be eligible for one of the following options:

• Inactive membership: As a vested member in UCRP, you may retain the right to future retirement benefits by leaving your retirement plan accumulations in the plan.
• Refund of accumulations: You may request a distribution of your plan accumulations when you leave UC. If you request a refund of plan accumulations, you must also take your Capital Accumulation Payment (CAP) accumulations, if any. Please note: If you are vested in UCRP and take a refund of your plan accumulations, you will no longer be eligible for future retirement benefits.  
• Retirement income: If you meet the criteria of your pension tier, you can elect to retire and receive a monthly lifetime benefit or, in some cases, a lump sum cashout. Contact the Retirement Administration Service Center for information if you decide to go this route.

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) in order to access your information. See UCPath online for former employees for more information.

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.