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Returning to Work After Retirement

Last Updated: April 14, 2025 1:04:23 PM PDT
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Read the guidelines for returning to work at UCSD after you've retired from the University of California.

UC’s benefits eligibility policy is being updated to ensure compliance with federal requirements. Updated policy will be effective July 1, 2025. Read an article about the policy changes: New benefits eligibility rules for rehired retirees.

 If you're a manager who wants to hire a UC retiree, see How to Hire a UC Retiree.

Conditions of re-employment

In all cases, requirements of post-retirement re-employment include:

  • Results from university need
  • Occurs only after a post-retirement break of at least 30 days and preferably 90 days
  • Cannot be discussed with or by retirees under the age of 60 until after the latest of these options has occurred:
    1. The first retirement check is received
    2. The lump-sum cash-out payment is received
    3. A post-separation period of 30 days
  • Approved by the executive officer (chancellor or designee). (Regents approve senior management positions.)
  • Retiree has signed the Rehired Retiree Election form: UCRP Reemployed Retiree Notification form (UBEN 1039), for more information visit UCnet. 

How this policy affects retirees who receive monthly payments

If you elected to receive monthly retirement payments, you have two options for returning to work:

  • Option 1: You return in a limited appointment (up to 43% time in a 12-month period).
    • Please see section below regarding Retiree Health impact for Rehires within 26 weeks – irrespective of appointment percentage.
    •  
  • Option 2: You return in a career appointment (50% time or more for 1 year or more). In this case you:
    • Must complete the UCRP Retired Employee Election Form to suspend income and also return any overpayment that might occur prior to beginning the career appointment
    • Must make any required contributions to the Defined Contribution Plan (DCP) and/or the UC Retirement Plan
    • Must suspend health and welfare benefits you received as a retiree
    • May contribute to 403(b), 457(b) and/or After Tax DCP

When your career appointment ends and you leave the university again, you:

  • Must re-retire the day after separation from UC employment
  • Will receive a calculation of the retirement income you earned during your re-employment period
  • Can name a new contingent annuitant for the re-employment portion of your retirement benefits

How this policy affects retirees who took lump-sum cash outs

If you elected to receive a lump-sum cash out when you retired, you have just one option available: returning to work in a limited appointment (up to 43% time in a 12-month period).

Understand the effect of your reemployment on your medical insurance and Medicare - UCnet

There are important changes taking effect July 1, 2025, to UC’s benefits eligibility policy for some people who return to UC employment within 26 weeks (6 months) of retirement.

• All rehired retirees will be assessed for faculty/staff benefits eligibility
• Some will be offered faculty/staff benefits – Mid-level package
• Some will have retiree medical enrollment suspended and Medicare no longer assigned to UC
• Most will be able to return to retiree medical after a period of time, which is variable depending on hire date

UC is offering a monthly webinar about benefits eligibility rules for rehired retirees, which are changing effective July 1, 2025:

The Retirement Administration Service Center (RASC) is offering weekly and monthly Medicare Question & Answer webinars, hosted by the RASC Insurance Liaisons. These sessions provide valuable guidance on the new rehired retiree benefits eligibility policy, Medicare enrollment, and transitioning to UC Medicare plans. Registration is required.

Monthly Medicare Webinar: https://bit.ly/RASCMedicareMonthly

  • Every 4th Thursday of the month
  • 10:00 AM to 11:30 AM PT
Weekly Medicare Q&A Sessions: https://bit.ly/RASCWeeklyMedicare
  • Every Tuesday
  • 12:00 PM to 1:00 PM PT

Other considerations when you return to work

  • Plan distribution rules apply for 403(b), 457(b) and/or DCP.
  • If you retired and elected monthly income, your sick leave was converted to service credit, so upon re-employment your sick leave hours would begin at zero.
  • If you took a lump-sum cash out, you may be eligible to have some or all sick leave re-instated (based on personnel policy/collective bargaining agreement that applies).

Retirees who have returned to work—or are considering doing so—can now schedule personalized one-on-one appointments with UC's insurance liaisons for guidance on the rehired retiree policy. These appointments provide an opportunity to clarify coverage details, address individual questions, and understand how the new policy may impact retirement health and welfare insurance benefits.

Book an Appointment with a UC Insurance Liaison: Here

More information and resources

For more information, contact your benefits representative.