Beginning with Separations on July 1, 2012, UC will no longer provide an extra month of insurance coverage following Separation. Currently, both UC and employees pay premiums for an additional month of coverage for all plans except Supplemental Disability. Effective July 1, 2012, coverage will be discontinued at the end of the month in which Separation occurs.
For example, the current practice provides that if an employee Separates on April 15, premiums are paid such that coverage is extended through the end of the following month, May 31. Under the new practice starting July 1, 2012, UC will no longer deduct a premium payment from an employee’s final paycheck and in this example coverage would end April 30.
Of the 26 College and University Professional Association (CUPA) institutions to which UC benchmarks itself, not one provides the one-month extension of benefits. The University estimates that this change will result in approximately $5 million of savings annually and align the University’s practice with standard business practices.
No Change for Retirements
This change does not apply to employees whose reason for Separation is Retirement. Employees who retire immediately after separating from UC will continue to have active employee health insurance coverage for the extra month. This applies to Retirees who are both eligible for Retiree Health Benefits continuation and those who are not, i.e., employees who retiree with less than 10 years of service and those who take a UCRP lump sum cashout.
Post Docs and Others
This change applies only to those eligible for the University's Faculty & Staff Benefits Program. It does not apply to the Post Doctoral Scholar Benefits Program or other benefit programs such as the Student Health Insurance or Health Insurance Plan for Residents.