SUBJECT:

Formal Review – Policy on Reemployment of UC Retirees

On September 8, 2008 The Regents approved a policy for Reemployment of UC Retired Employees into Senior Management Group (SMG) and Staff positions. The policy replaces the Guidelines for Rehire of UC Retirees.

The policy governs the reemployment of all former UC employees (Senior Management Group members, staff personnel, and academic appointees) who have separated from University employment and elected monthly retirement income or a lump sum cashout from the University of California Retirement Plan (UCRP), and who are rehired into SMG or staff positions. The policy is applicable to retired academic appointees who are rehired into SMG or staff positions, however, it does not apply to academic appointees recalled into faculty teaching or academic research appointments.

The policy was developed to ensure compliance with Internal Revenue Service restrictions on distribution of pension benefits prior to an employee's separation from service or attainment of "normal retirement age" as defined under the UCRP. It was also developed to address the University's interest in ensuring appropriate operation of a public retirement plan and clarifying the applicable rules, approval authorities, and reporting requirements in the reemployment of retired employees. The policy includes the following conditions on reemployment:

~ Must be as a result of exigent circumstances
~ Must not occur until there has been a break in service of at least 30 days
~ Must be limited to no more than a 43 percent appointment
~ Must not exceed a total of 12 months

The above conditions, other than the appropriate break in service, do not apply in cases of reemployment into a career appointment (subsequent to following regular UC recruitment procedures) when a retired employee elects to suspend his/her UCRP monthly retirement income. However, the above conditions do apply when a retired employee has taken a lump sum cashout.

The policy can be accessed under "Proposed Policies and Programs" at the following website:

http://atyourservice.ucop.edu/employees/policies_employee_labor_relations If you would like to comment on the proposed policy, please email your comments by October 31, 2008 to Jenni Leibman, Director, Employee Relations, Policy Development and Work/Life at employeerelations@ucsd.edu or Kelly Maheu, Director, Academic Compensation at kmaheu@ucsd.edu.

Paul W. Drake Senior Vice Chancellor- Academic Affairs Steven W. Relyea Vice Chancellor- Business Affairs