There are important changes coming this year to UC’s benefits eligibility policy for some people who return to UC employment within 26 weeks (6 months) of retirement. Under the new guidelines, rehired staff retirees and recalled academic appointees (referred to collectively as “rehired retirees”) who meet specific eligibility criteria will be offered the “Mid-level” faculty/staff benefits package instead of retiree medical benefits. UC retiree medical benefits will be suspended for any rehired retiree who is offered faculty/staff benefits, regardless of whether they enroll.
UC’s benefits eligibility policy is being updated to ensure compliance with federal requirements. Many rehired retirees will be offered UC’s faculty/staff medical benefits, and they cannot remain in UC-sponsored Medicare medical plans (such as UC Medicare Choice or Kaiser Senior Advantage) if they are eligible for faculty/staff medical benefits (such as UC Blue & Gold HMO, Kaiser HMO or UC Care). For the sake of equity, rehired retirees who are not eligible for Medicare are included in this policy. This is to their advantage since faculty/staff medical plan premiums are lower than premiums for non-Medicare retiree medical plans.
Understanding UC’s updated policy
Who is impacted
All rehired retirees will have their benefits eligibility evaluated. If you are rehired or recalled July 1, 2025, or later, your benefits eligibility will be assessed at the time of hire. If you are a retiree who was rehired by UC prior to July 1, 2025, UCPath will evaluate your benefits eligibility when your appointment is next renewed, extended or changed after July 1, 2025.
Please note that retirees who meet any of the criteria below will not be required to make changes to their benefits:
- Rehired more than 26 weeks after separation (however, see note below regarding annual eligibility determination)
- Ineligible for retiree health benefits from UC
- Have a “without salary (WOS)” job title, such as “emeritus without salary,” and are therefore not eligible for UC faculty/staff benefits (note that jobs with zero FTE or no compensation do not meet this criterion unless the job title includes “without salary.”)
How changes will impact rehired retirees
Rehired retirees whose benefits status is evaluated, either at the time of hire or when their appointment is extended or changed, and who meet eligibility criteria for faculty/staff medical benefits (and are not in any of the excluded groups mentioned above), will have their enrollment in a retiree medical plan suspended and be offered Mid-level faculty/staff coverage, with a 31-day Period of Initial Eligibility to enroll in their choice of faculty/staff medical plans. Rehired retirees are free to decline this coverage if another non-UC option (such as Original Medicare, a commercial individual Medicare plan or coverage through their spouse’s employer) would work better for them.
The Mid-level faculty/staff coverage provided for rehired retirees offers access to all medical plans, expanded life insurance options, basic and voluntary disability options and more. Note that dental and vision insurance are not included in the Mid-level benefits package; rehired retirees will continue to be eligible for dental and vision coverage through the Retiree benefits program.
Rehired retirees whose UC Medicare coverage is suspended are responsible for notifying the Centers for Medicare & Medicaid Services (CMS). Visit medicare.gov or call 1-800-MEDICARE (800-633-4227). The UC Retirement Administration Service Center (RASC) can provide step-by-step instructions and assistance with notifying CMS if needed. Visit rasc.universityofcalifornia.edu or see below for contact information.
Under federal rules, the average weekly hours of service of rehired retirees (like all other employees) will be measured annually to determine whether they meet the threshold for benefits eligibility. This measurement will determine if they are offered, remain in, or are terminated from faculty/staff benefits the following year.
When rehired retirees are no longer eligible for faculty/staff benefits, because their UC employment ends or their hours are reduced below the eligibility threshold, they may re-enroll in the medical plan of their choice under the UC retiree health program.
Getting help
The decision to return to UC employment after retirement is complicated. For example, you will need to consider how the timing of your return to UC employment may affect the start of Required Minimum Required Distributions from your tax-deferred retirement savings plan(s), and how to manage your Medicare Part B enrollment.
Take advantage of resources from UC to get the help you need. For more information:
- Visit Returning to work at UC after retirement, which includes answers to frequently asked questions.
- Contact the UC Retirement Administration Service Center (RASC; 1-800-888-8267, Monday through Friday, 7 a.m. to 4:30 p.m., PT) or visit rasc.universityofcalifornia.edu to schedule an appointment with a retirement counselor or learn more about monthly Medicare webinars and weekly Medicare office hours.
- Attend a retirement planning webinar.