- Retirees
- Understanding your retiree benefits
-
Eligibility for retiree health and home benefits
Eligibility for retiree health and home benefits
To be eligible for retiree health and home benefits, you must meet UC’s general eligibility guidelines and the age and service credit requirements that apply to you, depending on when you were hired (see categories below).
General eligibility guidelines
- Have a retirement date that is within 120 days of the date you end UC employment (for Savings Choice participants, the date your retiree health benefits coverage begins will be treated as your retirement date for this purpose)
- Be an active eligible employee enrolled in either UCRP (including Pension Choice) or Savings Choice
- Be enrolled in or eligible to enroll in Full UC employee benefits
- Continue health coverage until your retiree health benefits become effective1
Retiree health and welfare benefits are not available to those who elect a UCRP Lump Sum Cashout or to those who take a full refund or rollover of Savings Choice accumulations before beginning retiree health benefits. A partial refund or rollover of Savings Choice account funds will not affect eligibility for retiree health benefits, or retiree health service credit, as long as the DC Plan account maintains a balance of at least $2,000 (with some of that money remaining in the Savings Choice account).
For questions about eligibility or for more information about these benefits, contact the Retirement Administration Service Center (RASC).
If you enroll in UC primary retirement benefits or are rehired (after a break in service of more than 120 days):
You are eligible to enroll in retiree health benefits provided you are 50 or older and have at least 10 years of service credit at the time you retire.
If you retire at age 56 or older, you will receive a percentage of UC’s contribution toward monthly premiums based on your age and years of retiree health service credit at retirement. To receive the maximum UC contribution, you need to retire at age 65 with 20 or more years of service.
You are eligible to enroll in retiree health benefits if you have at least 10 years of UCRP service credit. If you have 5-9 years of service credit, you are eligible to enroll in retiree health benefits if your age plus your years of service is at least 75.
You will receive 100% of UC’s contribution toward the medical and/or dental monthly premiums if:
- You retire before age 55 and have at least 10 years of UCRP service credit (five years for Safety members)
- You retire at age 55 or later and have at least five years of UCRP service credit
UC’s contribution to medical and dental premiums
Currently, UC shares the monthly cost of medical and dental coverage with eligible retirees, up to a maximum UC contribution that varies each year depending on overall costs. Retirees may be eligible to receive from 5% to 100% of UC’s maximum contribution to premiums. This is known as “graduated eligibility,” and it does not apply to you if you became a member of UCRP before Jan. 1, 1990, and have not had a break in service of more than 120 days.
If you were hired or rehired on Jan. 1, 1990, or after, the amount UC will contribute to your monthly costs is calculated based on the amount of service credit you have earned and your age at retirement. The calculation depends on when you were hired.
| Service Credit | 55* | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 10 | 0% | 5.0% | 10.0% | 15.0% | 20.0% | 25.0% | 30.0% | 35.0% | 40.0% | 45.0% | 50.0% |
| 11 | 0% | 5.5% | 11.0% | 16.5% | 22.0% | 27.5% | 33.0% | 38.5% | 44.0% | 49.5% | 55.0% |
| 12 | 0% | 6.0% | 12.0% | 18.0% | 24.0% | 30.0% | 36.0% | 42.0% | 48.0% | 54.0% | 60.0% |
| 13 | 0% | 6.5% | 13.0% | 19.5% | 26.0% | 32.5% | 39.0% | 45.5% | 52.0% | 58.5% | 65.0% |
| 14 | 0% | 7.0% | 14.0% | 21.0% | 28.0% | 35.0% | 42.0% | 49.0% | 56.0% | 63.0% | 70.0% |
| 15 | 0% | 7.5% | 15.0% | 22.5% | 30.0% | 37.5% | 45.0% | 52.5% | 60.0% | 67.5% | 75.0% |
| 16 | 0% | 8.0% | 16.0% | 24.0% | 32.0% | 40.0% | 48.0% | 56.0% | 64.0% | 72.0% | 80.0% |
| 17 | 0% | 8.5% | 17.0% | 25.5% | 34.0% | 42.5% | 51.0% | 59.5% | 68.0% | 76.5% | 85.0% |
| 18 | 0% | 9.0% | 18.0% | 27.0% | 36.0% | 45.0% | 54.0% | 63.0% | 72.0% | 81.0% | 90.0% |
| 19 | 0% | 9.5% | 19.0% | 28.5% | 38.0% | 47.5% | 57.0% | 66.5% | 76.0% | 85.5% | 95.0% |
| 20 or more | 0% | 10.0% | 20.0% | 30.0% | 40.0% | 50.0% | 60.0% | 70.0% | 80.0% | 90.0% | 100.0% |
* Those who retire at 55 are eligible to enroll in UC-sponsored health insurance for retirees but will not receive a UC contribution.
| Years of UCRP Service Credit | Percentage of UC Contribution |
|---|---|
| 5-9 | If age plus years of service is at least 75 then 50%; otherwise not eligible |
| 10 | 50% |
| 11-20 | Increases from 50% by 5% per year to 100% at 20 years |
The UC Davis Health Care Facilitator page includes a premium estimator to help you understand what your share of your retiree medical premium might be. The numbers in the examples below are for illustrative purposes only and are not actual premiums or contributions.
| Eligible for 100% of UC Contribution | Graduated eligibility: 75% of UC contribution | Graduated eligibility: 50% of UC contribution | |
|---|---|---|---|
| Total monthly premium | $575 | $575 | $575 |
| UC Contribution | $450 | $337.50 | $225 |
| Your monthly premium | $125 | $237.50 | $350 |
Example 2: Contributions and premiums for Medicare plans
| Eligible for 100% of UC Contribution | Graduated eligibility: 75% of UC contribution | Graduated eligibility: 50% of UC contribution | |
|---|---|---|---|
| Total monthly premium | $250 | $250 | $250 |
| UC Contribution | $350 | $262.50 | $175 |
| Your monthly premium | 0 | 0 | $75 |
| Medicare Part B reimbursement* | $100 | $12.50 | 0 |
* If UC’s contribution to your medical plan is greater than the premium, UC reimburses you for a portion of the standard Medicare Part B premium you pay for Medicare coverage, usually as a deduction from your Social Security benefit.
Footnotes
- If there is a gap in time between the date you end UC employment and the date your UC-sponsored retiree medical and dental benefits become effective, you may have to pay the full monthly cost for your medical and dental plans (including UC’s contribution) to continue coverage during the gap period and maintain eligibility. You may also continue your vision and legal insurance during any gap period to ensure continuing coverage. If you don’t continue vision and legal coverage during this gap, though, you may add coverage during a future Open Enrollment period (if the plan is open). Retiree accidental death & dismemberment insurance can be added at any time.