Layoff Resources: Key Benefits Considerations

If the department is laying off staff:	If the department is hiring from a preferential rehire list or during a preferential rehire period:
Be aware of how the layoff date will affect your employees. There are several key factors that will affect eligibility for retirement benefits and insurance after retirement. Five years to vesting: Regardless of age, vesting affects eligibility for retirement, AND disability income benefits. If under age 50, can still retain eligibility through "inactive" membership.If age 50 or over, can retire. 120-day rule - Retire within 120 days of separation to preserve: Medical and dental annuitant insurance; important if the employee being laid off is more than 120 days before attaining age 50, or if employee delays retirement (while on preferential rehire list or for any other reason) and then is NOT rehired. Ten years of retirement service credit required to be eligible for annuitant insurance: If hired or rehired 1/1/90 or later. "Graduated" eligibility applies. For more information, refer to the Retirement Handbook (PDF) (KP#1400).	Re-enrolling in benefits: If an employee is rehired into an eligible appointment within 120 days, enrollment is limited to previous plans and coverage. If an employee is rehired into an eligible appointment following a break of 120 days or more, enrollment in any plans is allowed. Limited Appointments: 1. BELI 1 + UCRP: if employee has 1,000 benefits hours in prior 12 months. 2. BELI 2, 3, 4, or 5 + UCRP: if employee has less than 1,000 benefits hours in prior 12 months Return after starting UCRP monthly retirement income: 1. Employee is required to sign a UCRP Rehired Retiree Election Form UBEN 1039 electing to continue or suspend their UC retirement income. Note: A retired employee who takes a lump sum cashout may not be reemployed into a career appointment and is not required to submit a signed UBEN 1039 form. For more detailed information on the new policy for reemployment of UC retirees, effective January 1, 2009, go to At Your Service website at: http://atyourservice.ucop.edu, until the new reemployment factsheet and forms become available. 2. If eligible for Medicare or has a family member eligible for Medicare, and the UC retiree returns to an appointment of 43.75 percent time or more, s/he will be required to change their Medicare health plan coverage to either employee coverage or retiree coverage with Medicare as a secondary payer. Grandfathering of employee if hire date was prior to 1/1/90: Take action to document that employee returned under preferential rehire. Notify the HR Benefits Unit at benefits@berkeley.edu or 642-7053.

If the department is laying off staff:

If the department is hiring from a preferential rehire list or during a preferential rehire period:

Be aware of how the layoff date will affect your employees. There are several key factors that will affect eligibility for retirement benefits and insurance after retirement.

Five years to vesting: Regardless of age, vesting affects eligibility for retirement, AND disability income benefits. If under age 50, can still retain eligibility through "inactive" membership.If age 50 or over, can retire.

120-day rule - Retire within 120 days of separation to preserve: Medical and dental annuitant insurance; important if the employee being laid off is more than 120 days before attaining age 50, or if employee delays retirement (while on preferential rehire list or for any other reason) and then is NOT rehired.

Ten years of retirement service credit required to be eligible for annuitant insurance: If hired or rehired 1/1/90 or later. "Graduated" eligibility applies. For more information, refer to the Retirement Handbook (PDF) (KP#1400).

Re-enrolling in benefits: If an employee is rehired into an eligible appointment within 120 days, enrollment is limited to previous plans and coverage. If an employee is rehired into an eligible appointment following a break of 120 days or more, enrollment in any plans is allowed.

Limited Appointments:
1. BELI 1 + UCRP: if employee has 1,000 benefits hours in prior 12 months.

2. BELI 2, 3, 4, or 5 + UCRP: if employee has less than 1,000 benefits hours in prior 12 months

Return after starting UCRP monthly retirement income:
1. Employee is required to sign a UCRP Rehired Retiree Election Form UBEN 1039 electing to continue or suspend their UC retirement income. Note: A retired employee who takes a lump sum cashout may not be reemployed into a career appointment and is not required to submit a signed UBEN 1039 form. For more detailed information on the new policy for reemployment of UC retirees, effective January 1, 2009, go to At Your Service website at: http://atyourservice.ucop.edu, until the new reemployment factsheet and forms become available.

2. If eligible for Medicare or has a family member eligible for Medicare, and the UC retiree returns to an appointment of 43.75 percent time or more, s/he will be required to change their Medicare health plan coverage to either employee coverage or retiree coverage with Medicare as a secondary payer. Grandfathering of employee if hire date was prior to 1/1/90: Take action to document that employee returned under preferential rehire. Notify the HR Benefits Unit at benefits@berkeley.edu or 642-7053.