Rehire of Retirees – Staff Human Resources

Under the Rehire Retiree guidelines, retirees may be reemployed by the University in certain instances to help fill a particular staffing need on a part-time basis and for limited duration as a result of university need.

Note: The policy applies to former employees who elect either lump sum cash out or a UCRP monthly retirement benefit. It includes the following provisions:

Reemployment must result from university needs. For example, the retired employee possesses skills and institutional knowledge that the hiring department cannot otherwise obtain with equal cost effectiveness; the hiring department anticipates a prolonged process for hiring a replacement; or the hiring department intends that the retired employee will assist the replacement in acquiring necessary skills and knowledge.

The University cannot rehire the employee until the earlier of the employee receiving the first retirement payment or 90 days after the employee’s retirement date (can be lump sum or retirement income).

Departments must comply with IRS rules about when you can discuss reemployment with a former (or soon to be former) employee. For UCRP members, do not discuss reemployment until after the retiree has received their first UCRP monthly retirement payment, or 30 days after they have ended UC employment—whichever is later—if they are not yet at normal retirement age. (The normal retirement age is 65 if you joined UCRP on or after July 1, 2013, or age 60 if they joined before that date; for Safety members, it’s 50.) For Savings Choice participants, do not discuss reemployment until after the retiree has received retiree health coverage (or elected to suspend retiree health coverage), or 30 days after they ended UC employment—whichever is later.

From UCNet (source): Both the University and the employee must have intended that a separation from service occur and intended the separation to be permanent. A reduction in the number of hours (i.e., working part-time), or a transfer to a different location is not sufficient. In particular, the University cannot agree, prior to an employee’s separation or retirement, to rehire such employee. Agreeing to rehire prior to separation has been called a “sham transaction” by the IRS.

The appointment must be limited to no more than 43 percent time in a 12-month period.

Employment of a retiree must not exceed a total of 12 months, initially. If reemployment is necessary after 12 months, the request for continued employment must follow the same policy approval process as the original appointment under policy. The total months worked cannot exceed 24 months, not that this includes all instances of employment at any UC location.

TO GET STARTED:

Retiree Responsibilities:

UC’s health and welfare benefits eligibility rules for rehired retired staff and recalled academics are changed effective July 1, 2025.

Review the Returning to UC Employment After Retirement fact sheet PDF to make sure you understand the rules that apply to your situation.

See Rehired retiree support resources and Rehired retiree benefits eligibility linked here for information about your benefits as a rehired retiree and how the policy changes may affect you. The Returning Retiree Benefits Checker will ask you a few questions and provide a personalized summary of the benefits you’re eligible for.

For any questions, please contact benefits@ucsc.edu.

Department Responsibilities:

Contact your department’s Talent Acquisition Consultant (TAC) in Staff Human Resources to discuss the nature of the request. The TAC will assist you in determining if a retiree is eligible for reemployment pursuant to the policy and guidelines for Returning retirees. Additionally, please send the following documents to your TAC:
- Rehired Retiree Approval Form (UBEN 138) – Send a DRAFT of this form for review by the TAC. After consulting with TAC, the unit will make requested/necessary revisions to the UBEN 138 form and department obtains signature approval from the Department Head and the Principal Officer. The department sends the fully executed form to the TAC.
  - A justification statement for the rehire of the retiree will be part of UBEN 138

Before TA can make the offer, the department will need to have a UCPath position number with an updated Job Description classified by the Compensation department in Job Builder. If needed, initiate a Position Control Request (PCR) in Job Builder while concurrently requesting approval.
Once the Job Builder workflow is completed and the returning retiree has been approved to return by SHR, a Job Opening Request (JOR) for a limited non-recruitment in ServiceNow may be submitted.
Like any hiring action, the department works with their Principal Officer to obtain approval, followed by Chancellor or CP/EVC level approval to fill the position.

Talent Acquisition Responsibilities:

The TAC reviews the request for compliance to policy, (i.e. percentage, duration of the appointment, etc.), and consults with the unit as needed to finalize the UBEN 138 form. The TAC consults the Benefits Department on eligibility of the returning retiree to return to work.
The TAC routes the UBEN 138 form to the Director of Talent Acquisition and the Benefits Director for review.
The Director of Talent Acquisition sends the form to the Staff HR’s AVC/CHRO for review and final approval (or to the SHR Business Director as backup to the AVC/CHRO).
The TAC will advise the department of decision (approval or denial). Note: exceptions to policy will require the Chancellor’s approval.
If approved, the TAC Extends the job offer and finalizes the hire.
Election Form (UBEN 1039) – Once the hire date is set, TAC sends this form to the returning retiree to complete and sign (not needed for retirees who elected a lump sum cash out when retiring).

TO REQUEST AN EXTENSION OF APPOINTMENT:

Please consult with your ER Analyst (employee-relations-group@ucsc.edu) to determine if an extension is allowable under policy.

Resources: