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Health and Welfare Benefits-Indefinite Layoff

Know What will Happen to your Benefits

This detailed roadmap explains how UC benefits are affected by an indefinite layoff. If you want to continue some of your UC benefits, you’ll need to pay the full premiums (both your and UC’s portion) yourself. 

For some benefits, you also have the option to apply for conversion to an individual policy. This type of coverage, though, is likely to be more expensive, and provide fewer benefits, than your UC plan did.  For most benefits, if you decide not to continue coverage, or you don’t pay the premiums on time, coverage will end on the last day of the last month for which premiums have been paid.

Indefinite layoff is considered a separation from UC employment because a date is not specified for return to work. This resource does not apply to Managers & Senior Professionals (MSP), or Senior Managers (SMG). It also does not apply to career employees who are still in their probationary period. If you are in one of these categories, see the Termination of Employment Benefits Factsheet.

Medical

Current plans medical coverage will continue through the last day of the month in which the layoff is effective. For example, if you receive a layoff notice effective on October 1, 2020, your coverage would continue through October 31, 2020. If you received a layoff notice on October 30, 2020, your coverage would still continue only through October 31, 2020.

For medical only, another possibility is to apply — within 31 days after your group coverage ends — for conversion to an individual policy. Or you may apply to the insurance carrier directly for individual coverage, which could provide better benefits for less. The Affordable Care Act’s health insurance exchanges might also provide options.

  • Continuation of Group Insurance Coverage
    Laid off employees may be eligible to continue university sponsored health, dental, and vision coverage for up to 18 months. The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, gives eligible UC employees, annuitants, and their enrolled family members the right to temporarily continue health (medical, dental and/or vision) coverage in situations that would ordinarily cause an individual to lose group health coverage. More information regarding COBRA is available on the UCNet web site.
  • Covered California
    You may also be eligible for coverage under Covered California. Please visit the site for more information.

Life Insurance

  • Basic life:
    Contact the carrier directly, within 31 days after UC coverage ends, to apply for conversion to an individual policy.
  • Accidental Death and Dismemberment, Supplemental Life, Basic Dependent Life and Expanded Dependent Life:To continue your UC coverage for up to four months, contact your benefits representative to arrange to pay premiums directly. If you’re enrolled in Basic Life only, you may continue Basic Dependent Life; if you’re enrolled in and continue Supplemental Life, you may continue Basic Dependent Life or Expanded Dependent Life. When your group coverage ends, you have 31 days in which to apply for conversion to an individual policy. For AD&D, if you retire, you may continue coverage for yourself and your spouse or domestic partner.

    Important Contacts:

    • Local Benefits Office: (831) 459-2013
    • Fidelity Retirement Services: 1-866-682-7787
    • WageWorks (UC COBRA Administrator) 1-877-924-3967

    Helpful Tools and/or Other Benefits Resources: