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Policy and Procedure Manual

Chapter 380, Personnel--General
Section 30, Rehire of Retirees
Approved: 2/5/06
Supersedes: 12/7/01

Responsible Department: Human Resources
Source Document: University of California Retirement Plan Document, Sections 5.14, 5.15, 6.13, 6.14, 7.13, 7.14, 8.12, 8.13, and UCRP Regulations Appendices A-D

I. Purpose

This section provides general guidance to departments rehiring persons who have retired from the University. Retirees should consult the Davis campus or UCDHS Benefits Office to determine what effect a rehire would have on retirement benefits.

II. Policy

A. Internal Revenue Service rules prohibit retirement payments if an employee has not separated from service. A UC employee who has retired shall not be rehired unless the following guidelines are met.

1. Both the University and the retiree must have intended that the separation be permanent. No agreement to rehire a retiree can occur until a 30-day break in service has passed, except that discussions about reemployment may begin earlier if the employee is at least 60 years old and has at least 5 years of service credit.

2. A retiree shall not return to work until a 30-day break in service has passed. In addition, a retiree shall not return to work until he or she has received the first retirement payment (or lump sum cashout) or 90 days after the retirement date, whichever occurs first.

3. A change in circumstances must have occurred. For example, the department might be unable to find a suitable replacement, or the needs of the retiree or the department might have changed. Alternatively, a true separation from service can be proven if the retiree has acquired new skills, is returning to a different job, or had interim employment outside the University.

B. A University retiree may be appointed to a vacant position after recruitment as described in the applicable academic or staff policy.

C. A University of California Retirement Plan (UCRP) retiree must sign a waiver form prior to being rehired. The retiree may agree to waive, or decline, future service credit. UCRP retirement income will cease if the retiree does not agree to this waiver and then works 1,000 hours or more in a 12-month period.

D. UCRP retirees shall be appointed for less than 1,000 hours per 12-month period. Exceptions and extensions must be approved in advance by the Employment/Outreach Manager (PSS titles) or Associate Vice Chancellor--Human Resources (MSP titles).

E. Social Security benefits may be reduced based on the amount of the retiree's earnings. Retirees should contact the Social Security Administration for details.

III. Prior Policies

A. Mandatory retirement

There is no mandatory retirement age.

B. Salary limits

There is no longer any University limit on the sum of the salary and retirement income of a retiree who is rehired.

C. Voluntary Early Retirement Incentive Program (VERIP)

The VERIP limits on rehire have ended.

D. Phased retirement

The phased retirement program has ended.

IV. Independent Contractors

A retiree may serve as a consultant or independent contractor. See Section 380-70. The employee-vendor policy restrictions in Sections 330-05 and 350-90 apply to persons who have been retired for less than two years.

V. Further Information

For more information, contact the campus or UCDHS Benefits Office.

VI. References and Related Policies

A. University of California Retirement Plan Document, Sections 5.14, 5.15, 6.13, 6.14, 7.13, 7.14, 8.12, 8.13, associated UCRP Regulations, and UCRP Regulations Appendices A-D.

B. Assistant Vice Presidents Judith W. Boyette and Ellen Switkes to Academic Vice Chancellors and Vice Chancellors--Administration, April 13, 2001, and November 28, 2001.

C. Executive Director Michele French to Vice Chancellors, Vice Chancellor--Administration, et al., September 12, 2003

D. UCD Policy and Procedure Manual:

1. Section 330-05, Administrative Business Agreements.

2. Section 350-90, Employee Vendor Transactions.

3. Section 380-70, Independent Consultants.


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Last Updated: 1/3/07 | Questions and Comments

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