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Retiring on July 1? Consider applying for “no lapse in pay” beginning April 1

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Retirement is a big step, so if you’re planning to retire on July 1 you’ve probably already started to prepare. And an important date is approaching: April 1, the first day to apply for a July 1 retirement and “no lapse in pay” — a guaranteed continuation of income and medical and dental benefits (if you’re currently enrolled, and eligible for benefits as a retiree) as you transition to retirement.

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Introduced last year, UC offers a “no lapse in pay” option to eligible employees planning to retire from UC on July 1. This option ensures that eligible employees retiring on July 1, 2022, will receive their first retirement benefit payment on August 1, 2022. Employees interested in this option must submit all required documentation by May 13, 2022, and meet eligibility requirements (see “Before you apply” below for details).

How it works

If you are approved for “no lapse in pay,” the UC Retirement Administration Service Center (RASC) will either pay 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.

Before you apply

This option is only available for July 1 retirements 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
  • 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 (beginning April 1, 2022), simply click the “No Lapse in Pay” opt-in box when you begin the retirement process in UC Retirement At Your Service (UCRAYS) or submit the No Lapse in Pay Request form (U168).

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 Friday, May 13, 2022.

If you don’t qualify for “no lapse in pay”

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.

Important dates and deadlines for all July 1 retirees 

Get started today

If you haven’t already done so, make sure to register for a live retirement planning webinar presented monthly by the UC Retirement Administration Service Center (RASC). On March 24, get the background you need from the Preparing for Retirement webinar, and on April 5, get the details for your July 1 retirement from The UC Retirement Process – Step by Step.

Here are a few important steps you can take care of before April 1:

  • 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 Sheet 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 Reciprocity or on UCRP/CalSTRS Concurrent Retirement 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 Sheet for details.

April 1: First day to apply for July 1 retirement and “no lapse in pay”

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 by far) or paper forms.

May 13: Submission deadline for “no lapse in pay” application

To be approved for “no lapse in pay,” the RASC must receive your electronic opt-in (during the UCRAYS retirement process) or form (U168), your signed Monthly Retirement Income election and all required documentation (submitted via UCRAYS secure message or eFax) by this date.

Questions?

To speak to a UC Retirement Administration Service Center representative, call 1-800-888-8267, Monday–Friday, 8:30 a.m. to 4:30 p.m. (PT), or send a secure message through UCRAYS.

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