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What to do if you're

Leaving UC employment

So, you’re moving on. We’re sorry to see you go, and we wish you the best. But, before you shut the door and turn out the lights, there are a few things you’ll need to take care of. 

If you’re retiring, or wondering if you’re eligible for retirement, check out Preparing to retire or contact the Retirement Administration Service Center to get you started and answer any questions you have. You can also read the Retirement Handbook.

If you end your UC employment for medical reasons, see your benefits office immediately about your possible eligibility for disability, retirement and/or other benefits.

Read on for a complete guide to leaving UC employment.

1

Continue your medical, dental and vision insurance coverage, if you need it

Your participation in UC-sponsored benefits plans usually stops on the last day of the last month for which 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.

2

Convert your accidental death and dismemberment (ADD) and legal insurance to individual plans, if you want continued coverage

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.

3

Remember to spend the money in your flexible spending accounts (FSA)

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.

4

Make a choice about continuing your life insurance

You can continue life insurance when you leave UC employment. Your options depend on what plan you’re in.
5

Remember your disability insurance will end

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.

6

Make alternate arrangements for child- or elder-care resources

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

7

Decide what to do with the money in your retirement savings programs

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.
8

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.

9

Make a decision about 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.

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.

If you are a Savings Choice participant, your own employee contributions and related investment earnings are immediately vested (available to you), and UC’s contributions are vested after one year of service. Here are your options when you leave UC:

  • Keep some money in your Savings Choice account (and at least $2,000 in the DC Plan): As long as you maintain a minimum balance of $2,000 in the DC Plan, with some of that money remaining in your Savings Choice account, you retain any service credit you have toward retiree health benefits.
  • Take a full distribution or rollover of your Savings Choice DC Plan account, or trigger an automatic distribution by letting the balance of your DC Plan account fall below $2,000: If you choose this option before you begin receiving retiree health benefits, you will lose any retiree health service credit you have accrued. Should you be rehired by UC, you will not have the option to purchase the retiree health service credit you forfeited.

Learn more about retiree health eligibility here.

10

Make sure your beneficiaries are up to date

For UCRP and CAP, you can update beneficiaries any time online. For retirement savings accounts, contact Fidelity.
11

Keep UC informed if you move

If you leave money in UCRP, you’ll need to notify UC any time you move.
12

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.

13

That’s it. So long, farewell, auf wiedersehen, adieu