Retiree health & welfare benefits

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. The amount UC will contribute depends on the date you became eligible for benefits (or your rehire date if you incurred a break in service of more than 120 days), the amount of service credit you have earned and your age at retirement. 

Retiree health and welfare benefits are available through a number of plans that are available through UC, just like the plans that are available while you’re working. Plans are for retirees who are receiving Medicare as well as non-Medicare retirees. The specific benefits and premiums depend on what plan you choose. Review the full set of retiree health and welfare benefit plans available on UCnet.

You may be eligible for retiree health and welfare benefits if: 

• You have a retirement date that is within 120 days of the date you end UC employment and select the monthly retirement income option (for Savings Choice participants, the date your retiree health benefits coverage begins will be treated as your retirement date for this purpose) 
• You are an active eligible employee enrolled in either UCRP (including Pension Choice) or Savings Choice 
• You are enrolled in or eligible to enroll in full UC employee benefits 
• You continue health coverage until your retiree health benefits become effective 
• You must be eligible for UC-sponsored coverage when you leave UC employment. For medical and/or dental, you and your dependents (spouse/domestic partner, and children up to age 26) must be enrolled in either UC coverage or other qualifying non-UC coverage. 
• Please note retiree health and welfare benefits are not available to individuals who select a UCRP lump sum cashout, or to those who take a full refund or rollover of Savings Choice accumulations before beginning retiree health benefits.  

Learn more about health coverage.

Medicare is the federal health insurance program for people age 65 and over, and those receiving Social Security Disability Income (SSDI). Medicare plays an important role — in coordination with your UC retiree health benefits — in covering your health care costs as you age. If you are enrolled in Medicare, your UC health benefits will overlap and complement the coverage you get from Medicare.  
 
Generally, you will become eligible to enroll in Medicare when you turn 65. If you are receiving SSDI, you are eligible for Medicare two years after you starting receiving SSDI. If you’re receiving Social Security, Railroad Retirement, or Civil Service income benefits, enrollment in Part A and B of Medicare is automatic. If you are turning 65 at the time of your retirement from UC and you are eligible for premium-free Part A, you and your spouse must enroll in both Part A (if not already enrolled) and Part B.  
 
Whether you are required to enroll in Medicare when you turn 65 depends on whether you’re an active UC employee, preparing to retire, or retired. To avoid Medicare and UC premium penalties (which can be substantial), make sure you enroll in both Medicare and a UC sponsored Medicare plan, and understand the rules that apply to you and your family members. Learn more about Medicare eligibility and enrollment and explore Medicare resources.  
 
If you are enrolled in a UC sponsored Medicare plan and move to another state or U.S. territory outside the plan service area, you must enroll in another plan that provides service in your new location within 31 days. You may also need to select a new primary care physician. Additionally, UC sponsors a Medicare Coordinator Program for Medicare-eligible retirees and families that provides personalized guidance and support. 

Would you like help planning for your health and welfare benefits in retirement? For basic questions around coverage, call RASC at 1-800-888-8267. For guidance to help you choose a medical plan and to see rates specific to your location and bargaining unit (if represented), visit ALEX, your virtual benefits counselor.