[UCRDBR] RASC – No Lapse in Pay option available on January 4, 2022 to retirees

[Departmental Benefits Representatives]

[cid:image002.png at 01D7BEAC.046E5170]

October 11, 2021
To:
Department Benefits Representatives (DBRs)
From:
HR Benefits Office on behalf of the UC Office of the President
Re:
RASC – No Lapse in Pay option available on January 4, 2022 to retirees
On April 22, 2021, RASC notified<https://hr.ucr.edu/sites/g/files/rcwecm656/files/2021-10/4.22.21%20New%20%E2%80%9Cno%20lapse%20in%20pay%E2%80%9D%20option%20for%20prospective%20July%201%20retirees.pdf> the campuses that UC introduced a new option for some prospective retirees last spring—a guarantee that after retiring on July 1, 2021, retirees would receive their first well-deserved retirement benefit payment on August 1,2021. This is referred to as the no lapse in pay option, and will be available once again for some faculty and staff planning to retire in January 2022.

UC employees who are on schedule to retire with a monthly benefit on January 4, 2022 and who qualify, will have the opportunity to opt-in for a guaranteed payment beginning February 1, 2022. (Note: a retirement date of January 4, 2022 is recommended due to UC’s holiday schedule and; faculty members on a quarterly schedule are usually not eligible to retire on this date).

Who qualifies
Before prospective retirees take the time to apply, it is important for them to consider whether they are likely to qualify. A request for this option will not be approved for those who are opting for a lump sum cash-out, or for those who have circumstances that can make the retirement process take longer. This includes a number of factors outside of the employee's control. For example, prospective retirees won’t qualify for this option if they:

   ·       Are eligible for reciprocity with CalPERS

   ·       Have UCRP service credit in more than one retirement tier

   ·       Have pensionable earnings and/or potential pension payments that exceed IRS limits

   ·       Have a divorce settlement that may require additional paperwork
Whether or not prospective retirees qualify for no lapse in pay, RASC representatives will do their best to process their retirement within 45 days, and to provide a monthly benefit payment on February 1, 2022 for retirees who submit all required paperwork by the stated deadlines. Health and welfare coverage for those who are eligible will continue without interruption during the transition to retirement.

How it works
The request to opt-in to no lapse in pay<https://ucnet.universityofcalifornia.edu/forms/pdf/ucrs-168.pdf>, along with a signed election form and all required documents, must be submitted by November 5, 2021. The UC Retirement Administration Service Center (RASC) will let prospective retirees know if their request is approved.

If RASC isn’t able to calculate the confirmed benefit amount in time, retirees who are approved for no lapse in pay will receive a payment for their estimated retirement benefit instead. If there are differences between the estimated benefit and the confirmed amount, the retiree’s benefit payment and premium deductions will be adjusted no later than the May 1, 2022, payment.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.ucr.edu/pipermail/ucrdbr/attachments/20211011/42a814de/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 12623 bytes
Desc: image002.png
URL: <https://lists.ucr.edu/pipermail/ucrdbr/attachments/20211011/42a814de/attachment.png>