Staff Human Resources

Health and Welfare Benefits-Indefinite Layoff

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Know What will Happen to your Benefits

This detailed roadmap explains how UC benefits are affected by an indefinite layoff. Generally, health plan (e.g. medical, dental, optical) & insurance (e.g. life, legal, supplemental health) coverage ends on the last day of the month in which your employment ends. For example, if your Indefinite Layoff date is September 15, employee medical plan coverage ends on September 30th.

For some insurance plans, you have the option to convert to an individual policy. This type of coverage is likely to be more expensive. 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 permanent separation from UC employment. This resource is only applicable to PPSM (Professional & Support Staff) employees only. Reach out to your ER analyst to understand your resources if you are a MSP (Managers & Senior Professionals) or SMP (Senior Manager). 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.

Health Plan Continuation – COBRA

COBRA continuation of coverage is available for health plans (e.g. medical, dental, optical) in which you are enrolled while employed at UC, including Health FSA and Employee Assistance Program (EAP)1. Upon your separation from UC employment, a COBRA notice and election form will be mailed to your address on record in UC Path from WEX Health, the firm that UC employs to administer COBRA benefits. WEX can also be reached by phone at 1 (844) 561-1338. For details, please refer to Continuation of Health Coverage under COBRA.

You are responsible for sharing COBRA notice & election information with your covered family members [aka Qualified Beneficiary(ies)]. The qualified beneficiary has 60 days from their first day of COBRA eligibility or the date their COBRA Specific Rights Notice was mailed, whichever is later, to make their initial COBRA elections. Failure to make an election within the 60-day window will result in qualified beneficiaries losing their right to continue health coverage through COBRA.

COBRA Alternative: Medical plan benefits may be more affordable through the Affordable Care Act (a.k.a “ACA” or “Obamacare”) healthcare exchanges than COBRA. California residents may visit https://www.coveredca.com/ for more information and non-CA folks can go: www.healthcare.gov  (UC Santa Cruz staff are not qualified to offer ACA healthcare exchange counseling.)

Insurance Plan Conversion – Life Insurance and other plans

Basic Life, Supplemental Life, Basic Dependent Life, Expanded Dependent Life, Accidental Death and Dismemberment coverage may be converted to an individual whole life policy without a medical exam. Employee-paid policies may be available for portability of coverage. Please find Life Insurance continuation information at: Prudential website. You must submit an application and the required premium to The Prudential Insurance Company within 31 days from the date your coverage ends.

Legal coverage may be converted to individual policy. Contact the carrier directly within 31 days of termination.

Supplemental Health Plans (UC Plus Accident, Critical Illness, Hospital Indemnity) coverage may be continued through porting. Contact the carrier directly within 31 days of termination.

Basic Disability, Voluntary Short- and/or Long-Term Disability, Workers’ Compensation and Business Travel Accident Insurance end on your last day actively at work2. No continuation is available for these plans.

Helpful Tools and/or Other Benefits Resources:

Looking for information…? UC Net has your account logins:

 1Employee Assistance Program (EAP) is automatically extended, at campus expense, for six (6) months following termination of employment to employees whose position is subject to Layoff.

 2Being actively at work means that you’re being paid and on the job working. Being on pay status also means that you are being paid, but you are not on the job working, because you might be on vacation, on leave, or out sick.

Last modified: Sep 26, 2025