Current Staff Employees
Benefits Checklist Supplement: How Benefits are Affected by Indefinite Layoff
Retirement Plan Options and Decisions
If you are NOT "vested": If you have less than five years of University of California Retirement Plan (UCRP) service credit, you are not eligible now or in the future for monthly retirement income or a lump-sum cashout. However, if you have a Capital Accumulation Provision (CAP) balance and terminate University employment, you must take a distribution of your CAP balance and any UCRP contributions you may have. If you later return to the University, you can re-establish the service credit you currently have on record so that these years will count in your total.
If you ARE "vested": If you have five or more years of UCRP service credit, you have the option of becoming an inactive member (by leaving all UCRP/CAP contributions on deposit) or starting monthly retirement income now (if you are at least age 50) or later. IF YOU ARE AGE 50 OR OVER, SEE BELOW FOR POSSIBLE RISKS INVOLVED IN POSTPONING RETIREMENT INCOME.
Benefits are based on your Service Credit, Age Factor, and Highest Average Plan Compensation (HAPC), which is your highest average monthly salary rate over any consecutive 36-month period.
Example:
Employee age 55 with 10 years of service credit and full-time monthly
rate of $3,000
10 x .0180 (at age 55) = .18 (18%) of ($3,000/month) = $540/month
(If you are covered by Social Security, first subtract $133 from your
HAPC.)
The plan also provides continuing income to eligible survivors, payment options to contingent annuitants, disability, and death benefits. Instead of monthly retirement income, a lump-sum cashout is also available; however a lump-sum cashout eliminates eligibility for annuitant insurances and conversion of sick leave into retirement service credit. If you become an inactive member, you may be required to leave your CAP balance on deposit until you draw benefits. For questions, contact your assigned retirement counselor: if your last name begins with A-F contact Art Leon (643-7549 or aleon@berkeley.edu), G-L contact Emily Ladner (642-1122 or ladner@berkeley.edu) and M-Z contact Darda Swanson (642-9310 or dswanson@berkeley.edu).
IMPORTANTIf you are vested and are age 50 or over: Annuitant Insurance: If you retire within
120 days of your date of separation, you may
also be eligible for continued medical and dental insurance
as an annuitant. See the UC
Retirement Handbook (PDF) for eligibility requirements.
For information on how to continue your insurance coverage,
refer to the Insurance Options section below. Your coverage
must be continuous until the retirement date (through COBRA
or payroll). |
If you have a service credit buyback in process: You may
not continue buyback payments. However, you will receive proportional
retirement service credit, or if the service credit is needed for
vesting, you can pay off your balance.
Agreements with other retirement systems: UCRP and the California Public Employees' Retirement System (CalPERS) have a reciprocal agreement that provides continuity of benefits for employees who change employers and transfer between the two retirement systems under certain circumstances. Whether vested or not, if you obtain CalPERS-covered employment within 180 days of leaving your UC position, you can elect reciprocity by becoming an inactive member of UCRP and later retiring on the same day under both systems. The advantages are: 1) Combined service credit counts toward vesting in both systems (for example, two years in one retirement system plus three years in the other makes you vested in both); and, 2) Your highest salary will be used to calculate benefits in both systems. For more information, refer to the UCRP/CalPERS Reciprocity Factsheet.
In addition, UCRP has a concurrent retirement agreement with the California State Teachers' Retirement System Defined Benefit Program (CalSTRS). If you have questions on reciprocity with CalPERS or concurrent retirement with CalSTRS, contact the HR Benefits Unit at 642-7053. For more information, refer to the UCRP/CalSTRS Concurrent Retirement Factsheet.
UC Retirement Savings Program Options and Decisions
Defined Contribution Plan and Tax-Deferred 403(b) Plan: If your balance in each plan is at least $2,000, you can leave it on deposit. Distributions paid directly to you are taxed as ordinary income in the year it is received. Distributions are also subject to mandatory 20 percent federal tax withholding unless you arrange to directly rollover the money to an IRA or another employer-sponsored plan that accepts rollovers. Further, distributions taken before age 59-1/2 may be subject to early distribution penalties. Exception: If you terminate employment at UC during or after the year you turn age 55. For assistance, please call Fidelity Investments Tax-Exempt Services Company (FITSCo) at 1-866-682-7787, Press 3, Monday through Friday between 5:00 a.m. and 9:00 p.m., PT.
Outstanding Loan Tax-Deferred 403(b) Plan: Loans must be paid in full or, if you elect monthly retirement income, you can arrange for monthly payments. Contact FITSCo at 1-866-682-7787, Press 3, Monday through Friday between 5:00 a.m. and 9:00 p.m., PT.
457(b) Deferred Compensation Plan: If your balance in this plan is at least $2,000, you can leave it on deposit. Distributions paid directly to you are taxed as ordinary income in the year it is received. Distributions are also subject to mandatory 20 percent federal tax withholding unless you arrange to directly rollover the money to an IRA or another employer-sponsored plan that accepts rollovers. There are no early distribution penalties except for amounts attributable to rollovers into the Plan from a 403(b), 401(a), or 401(k) plan.
Flexible Spending Accounts (Dependent Care Assistance Program (DepCare) and Health Care Reimbursement Account (HCRA)): ): Claims for reimbursement for eligible expenses (those incurred while covered) must be filed before June 15 of the year following your participation.
Insurance Options and Decision
Coverage that can be continued under Consolidated Omnibus Reconciliation Act (COBRA): You and/ or your eligible family members may be eligible to continue your University-sponsored medical, dental, vision, and Health Care Reimbursement Account (HCRA) under COBRA continuation. Your Department Benefits Counselor (DBC) can provide you with the COBRA Continuation of Group Insurance Coverage brochure, election form, and rates and contacts for your medical, dental, and vision plans. SHPS, Inc., the HCRA administrator, will contact you directly about continuing HCRA under COBRA. Note: All payments under COBRA, including those for HCRA, are with after-tax dollars; you must apply within 60 days of receiving COBRA notice or layoff date, whichever is later.
Coverage that can be maintained for four months by paying, then converting if desired: You may continue your Supplemental Life, Dependent Life, Accidental Death and Dismemberment for up to four months after the month of your layoff begins. To make arrangements, contact Angela Dizon at the Central Payroll Office: 642-0684, adizon@berkeley.edu.
Coverage that can be converted or carried over: When you leave UC employment or retire, you can continue life insurance benefits. You have different options depending on the plan.
Basic or Core Life Insurance benefits can be converted to an individual Whole Life plan with Prudential, UC's life insurance carrier.
Supplemental Life Insurance benefits can be converted to a whole life plan or carried over to the Prudential Portability group term life plan. Group term life insurance plans have lower premiums than individual whole life plans.
Dependent Life Insurance coverage also has both the portability and conversion options. However, portability is available only if you also elect portability of your Supplemental Life Insurance Plan.
For more information about your options, contact Ruby Thomas (643-5835, rthom@berkeley.edu) for last names beginning A-L and Sheila Taliaferro (643-7986, sheilat@berkeley.edu) for M-Z.
Coverage that stops: Group disability insurance, Business Travel Accident, and Workers' Compensation coverage stops on your last day at work.
If You Return to UC Employment
Re-enrolling in benefits: If you are rehired into an eligible appointment within 120 days, enrollment is limited to previous plans and coverage. If you are rehired following a break of 120 days or more, your enrollment in any plans is treated like a newly eligible employee. For more information, speak to your new DBC.
If you obtain a Limited Appointment: If your limited appointment starts during your preferential rehire period, remind your new department to code your employment records as a UCRP member. Note: Insurance eligibility is based on your title code, percent of time, and duration of appointment; however, if you have 1,000 eligible hours in the payroll system at the time of rehire, you are immediately eligible for Full Benefits. To meet the ongoing eligibility criteria and maintain your insurance benefits, you must maintain the minimum Average Paid Time requirement of 17.5 hours per week.
If you return after starting UCRP retirement income: If you are receiving monthly retirement income and you are reappointed to University employment, you may waive your rights to additional UCRP benefit accruals, including service credit, during your reemployment. You will be asked by your department to complete and submit the UCRP Waiver and Release accepting or declining the waiver option. If you wish to discuss the waiver options, contact the HR Benefits Unit at 642-7053. For guidelines on reemployment after Retirement, refer to Returning to UC Employment After Retirement Factsheet (PDF).
If you have your insurances as an annuitant, you may continue to receive these benefits in addition to your salary. However, if your temporary appointment qualifies you for University-sponsored medical insurance, you will need to "opt out" of this insurance since your insurance will be continuing as an annuitant. If you return to career employment or Full Benefits status, you will need to suspend your UCRP retirement income and enroll in benefits as an employee. Note: If you return to work after retirement and you or a family member(s) are eligible for Medicare, your retiree medical insurance benefits and premiums may be affected, if your appointment is 43.75 percent time or more. For more detailed information, see the Returning to UC Employment After Retirement Factsheet (PDF).
If you became a UCRP member before January 1, 1990: If you obtain a UCRP-eligible position through preferential rehire, OR within the preferential rehire period, ask the HR Benefits Unit about documenting your UCRP records so that you retain eligibility for annuitant insurance under the more generous pre-1990 rules, as long as you are enrolled in the insurance at the time you retire.
Steps You Need to Take
Ask your Department Benefits Counselor for these publications, forms and handouts:
- Read the Indefinite Layoff Benefits Checklist.
- Obtain a COBRA packet which includes the COBRA Continuation of Group Insurance Coverage brochure, COBRA Continuation Election UBEN 102 form and mailing addresses and premium information handout. If you wish to continue your University-sponsored medical, dental and/or vision coverage for you and your eligible family members, complete and submit the UBEN 102 form along with your payment to each insurance company by the deadline on the UBEN 102 form.
- View your personalized UC Retirement Estimates and CAP Balances on the At Your Service Online web site at http://atyourservice.ucop.edu.
- If you are a vested member of UCRP and are age 50 or over and want to learn more about your retirement options, contact your assigned retirement counselor: if your last name begins with A-F contact Art Leon (643-7549 or aleon@berkeley.edu),G-L contact Emily Ladner (642-1122 or ladner@berkeley.edu) and M-Z contact Darda Swanson (642-9310 or dswanson@berkeley.edu). CAUTION: Refer to the box labeled IMPORTANT in this handout.
- Contact a FITSCo Retirement Services Specialist at 1-866-682-7787, Monday through Friday between 5:00 a.m. and 9:00 p.m., PT to obtain information about your UC Retirement Savings Program accounts.
- If you move, change your home address with the department or on the At Your Service Online web site at http://atyourservice.ucop.edu.