April 30, 2025

Updated UC benefits eligibility for rehired retirees and academic appointees

(SACRAMENTO)

Important changes to UC’s Health & Welfare Benefits eligibility rules for rehired staff and recalled academic appointees (rehired retirees) enrolled in UC retiree medical plans are effective July 1, 2025.

To ensure compliance with federal regulations, UC will require certain rehired retirees to change their retiree medical coverage upon re-employment with UC. The new eligibility rules apply to retirees rehired or recalled July 1, 2025, or later. Retirees rehired prior to July 1, 2025, will have their benefits eligibility evaluated by UCPath when their appointment is next renewed, extended, or changed after July 1, 2025.

Rehired retirees who are eligible for UC retiree health benefits and become eligible for UC employer-sponsored group medical coverage will be offered Mid-level faculty/staff benefits (rather than Core). Mid-level faculty/staff benefits are more comparable to retiree coverage, providing access to all medical plans and expanded life insurance options.
Rehired retirees can accept or decline the offer of faculty/staff coverage. Rehired retirees who accept UC’s offer of faculty/staff medical coverage and take action to enroll will have their medical plan and any other benefits under the Mid-level benefit package administered by UCPath.
Rehired retirees who are offered a UC faculty/staff medical plan will not have the option to remain enrolled in a UC retiree medical plan. Enrollment in a UC retiree medical plan will be suspended and for those with Medicare, it will be secondary to their employee coverage.
Duplicate coverage under both benefit programs is not allowed. Rehired retirees will be allowed to continue any non-duplicative, non-medical plans offered under the retiree benefits program, such as dental and vision. Those plans will continue to be administered by the Retirement Administration Service Center (RASC) or the carrier, as applicable.
Upon future loss of eligibility for faculty/staff benefits (due to termination of employment or failure to meet the federally mandated average weekly hours of service during the annual measurement period), rehired retirees may re-enroll in the medical plan of their choice under the UC retiree health program.

The policy changes apply to all rehired retirees whether or not they are eligible for Medicare, except:

Rehired retirees who are ineligible for UC’s retiree health benefits, including those who elected to take a lump sum cash out of their UCRP benefits
Reinstated employees (retirees who are rehired into a UCRP-eligible position and suspend retirement)
Rehired retirees who are ineligible for faculty/staff benefits, including those who

are rehired at less than 43.75% and have been separated for greater than 26 weeks; or
were ineligible for faculty/staff benefits prior to separation; or
are reappointed into a Without Salary job type. Note: A Without Salary (WOS) job type is defined in UCPath, for this purpose, by having a job code with “WOS” in the job title description (e.g., Emeritus WOS). A zero FTE (0%) appointment is not equivalent to a WOS job code for this purpose.

Key takeaways and considerations:

Those enrolled in UC Retiree medical and qualify for benefits as a rehired retiree will be offered the Mid-Level Benefits package. UC retiree medical will be suspended whether or not the rehired retiree enrolls in a medical plan through UCPath.
Those rehired within 6 months of separation/retirement would most likely qualify for employee coverage (due to Affordable Care Act rules). This includes Per Diem and zero FTE appointments which differ from Without Salary Job titles.
Rehired retirees can avoid qualifying for faculty/staff benefits by delaying rehire to more than 26 weeks of retirement/separation and limiting their rehire appointment and average weekly hours to less than 43.75% time.
Rehired retirees who are ineligible for UC Retiree Medical are not impacted (i.e. took Lump Sum Cashout or did not have qualifying years of service).
There is no change to existing Policy on Reemployment of UC Retired Employees Into SMG and Staff Positions.
Those considering re-employment after retirement are encouraged to contact Benefits, Health Care Facilitator or the RASC to discuss their individual circumstances and potential impact of this change.

Resources for current and prospective retirees: