Dear campus colleagues,
It is the time of year when employees and departments are starting to prepare for upcoming retirements. We ask that if you are aware of an employee retiring, you please submit a ServiceHub Voluntary Separation Case as soon as possible so we can ensure their retirement is processed timely to not impact their pension payments. Also, there are some helpful reminders around retirement dates below as well as some very important changes that will impact the medical benefits of employees who will be rehired less than 6 months from their retirement date.
Important Retirement Information:
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The annuitant Cost of Living Adjustment (COLA) is available regardless of your UCRP retirement tier after you have been retired for at least 12 months following July 1. The inactive COLA only applies to members of the UCRP 1976 Tier, including Safety members. 2025 cost of living adjustments have been announced.
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Members of the UCRP 1976 Tier, including Safety Members, often choose to retire on July 1 to maximize their benefits. To be eligible for the Inactive COLA, you’ll need to select a July 1 retirement date with RASC and enter the Last Day Worked on or before Friday, June 27, 2025, in the UCPath system. For more information on the Inactive COLA eligibility, see the UCnet Retirement Handbook.
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For specific details on how this will be processed in UCPath, please refer to the 2025 Retirement transactional job aid.
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April 1, 2025, is the first day to apply for a July 1, 2025, retirement, and the “No Lapse in Pay” option guarantees a continuation of income as well as medical and dental benefits (if you’re eligible for benefits as a retiree) as you transition to retirement.
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Applying for the “No Lapse in Pay” option is easy — simply click the opt-in box on the signature page when making your retirement election in UC Retirement At Your Service (UCRAYS). (You can also submit a form to apply.) If you are approved, you’ll receive your first retirement benefit payment on August 1.
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To be approved, you must meet eligibility requirements (see “Before you apply” below for details) and submit your No Lapse in Pay electronic opt-in or form, your signed Monthly Retirement Income election and all required documentation by May 15, 2025.
New changes to rehire retirees retirement:
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All rehired retirees will have their benefits eligibility evaluated. If you are rehired or recalled July 1, 2025, or later, your benefits eligibility will be assessed at the time of hire. If you are a retiree who was rehired by UC prior to July 1, 2025, UCPath will evaluate your benefits eligibility when your appointment is next renewed, extended or changed after July 1, 2025. Rehired retirees rehired after July 1, 2025 who are UC Benefits eligible will have their enrollment in a retiree medical plan suspended and be offered Mid-level faculty/staff coverage, with a 31-day Period of Initial Eligibility to enroll in their choice of faculty/staff medical plans. Note that dental and vision insurance are not included in the Mid-level benefits package; rehired retirees will continue to be eligible for dental and vision coverage through the Retiree Benefits Program.
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For detailed information about this upcoming change, see the New Benefit Eligibility page for Rehire Retirees, Resources, Fact Sheet for Rehired Retirees and I encourage you to watch the video at 1.5 speed.
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Please remember that retirees cannot be rehired for a minimum of 30 days and preferably after they have received their first pension payment. Please refer to the process guide and our Rehiring UC Retiree policy for all the details.
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Rehire retirees MUST be approved by the Assistant Vice Chancellor of Human Resources and this takes up to 30 business days to approve once submitted completely and accurately to People and Culture. To process your rehire retiree, BRS needs to receive your request a minimum of 60 days in advance of the start date to allow for any corrections to the forms or exception approvals.
Thank you,
Karla Sanchez