Retiring on January 3? Now’s the time to apply for retirement — and “no lapse in pay” — on UCRAYS

If you’re planning to retire on January 3, congratulations! The UCRAYS retirement process and the “no lapse in pay” option can make the process easier than ever — as long as you stay on track and meet the important deadlines below.

“No lapse in pay” is 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. Employees interested in this option must submit their signed election form and all required documentation by November 15, 2023, and meet eligibility requirements (see “Before you apply” below for details).

Employees who qualify and retire on January 3, 2024, will receive their first retirement benefit payment on February 1, 2024.

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 May 1 payment.

Before you apply

This option is only available for January 3 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, simply click the “No Lapse in Pay” opt-in box when you begin the retirement process in UC Retirement At Your Service (UCRAYS). You have the option to submit the No Lapse in Pay Request form (U168) via fax or secure message instead; however, your application may take longer to process.

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 Wednesday, November 15, 2023.

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 January 3 retirees

As soon as possible

• 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.
• 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.

Thursday, October 26, 10 a.m.: UC Retirement Process Step by Step webinar

This live webinar presented by the UC Retirement Administration Service Center (RASC) explains everything you need to know about the retirement process, including required forms, important deadlines and helpful resources. Can’t attend? Watch the UC Retirement Process recording.

November 15: 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.