[UCRDBR] “No Lapse in Pay Option” for Prospective January 4, 2023 Retirees

[Departmental Benefits Representatives]

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October 19, 2022

To:
Department Benefits Representatives (DBRs)
From:
HR Benefits Office on behalf of UC Office of the President
Re:
RASC - “No Lapse in Pay Option” for Prospective January 4, 2023 Retirees
DBRs, please share this important information with employees planning to retire on January 4, 2023.
If you’re planning to retire on January 4, congratulations! The UCRAYS retirement process and the “no lapse in pay” option can make the process easier than ever — as long as you stay on track and meet the important deadlines below.
The “No lapse in pay” retirement option<https://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/the-no-lapse-in-pay-retirement-option.html> is a guaranteed continuation of income and medical and dental benefits (if you’re currently enrolled, and eligible for benefits as a retiree) as you transition to retirement. Employees interested in this option must submit their signed election form and all required documentation<https://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/required-documentation-for-retirement.html> by December 2, 2022, and meet eligibility requirements (see “Before you apply” below for details).
Employees who qualify and retire on January 4, 2023, will receive their first retirement benefit payment on February 1, 2023.
How it works
If you are approved for “no lapse in pay,” the UC Retirement Administration Service Center (RASC) will either pay your calculated benefit amount or your estimated benefit as it appeared on your Personal Retirement Profile; for most members these two amounts are identical. If there are differences between the estimated benefit and the calculated amount, your benefit payment and premium deductions will be adjusted by the May 1 payment.
Before you apply
This option is only available for January 4 retirements which do not require special processing. Unfortunately, a number of circumstances can make a prospective retiree ineligible for “no lapse in pay,” such as:

  *   You are choosing a lump sum cash out
  *   You have reciprocity with CalPERS or CalSTRS
  *   You have UCRP service credit in more than one retirement tier
  *   You have a legal obligation to divide your UCRP benefits (for example, in the event of a divorce, legal separation or termination of a domestic partnership) that has not been finalized
If you think you may qualify and would like to apply, simply click the “No Lapse in Pay” opt-in box when you begin the retirement process in UC Retirement At Your Service (UCRAYS). You have the option to submit the No Lapse in Pay Request form (U168)PDF<https://ucnet.universityofcalifornia.edu/forms/pdf/ucrs-168.pdf> via fax or secure message instead; however, your application may take longer to process.
To be approved, the RASC must receive your No Lapse in Pay electronic opt-in or form, your signed Monthly Retirement Income election and all required documentation<https://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/required-documentation-for-retirement.html> (submitted via UCRAYS secure message or eFax) by Friday, December 2, 2022.
If you don’t qualify for “no lapse in pay”
It is UC’s goal to process your retirement and provide a statement confirming your retirement benefit within 45 business days of receiving your signed election. Please note that delays in receiving your required documentation<https://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/required-documentation-for-retirement.html> can delay the process.
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