UC Regents approve plan to boost the financial health of the UC Retirement Plan | UCnet (2024)

FAQs

UC Regents approve plan to boost the financial health of the UC Retirement Plan | UCnet? ›

The plan does not raise employee contributions to UCRP. Specifically, the approved plan increases the University/employer contributions to the UCRP by 0.5% per year, from 14% to 18% of payroll, and transfers $3 billion to UCRP from the Short Term Investment Pool (STIP) over time.

UC Retirement Plan – 1976 Tier

The UC Retirement Plan (UCRP) is a traditional pension plan that offers a predictable level of lifetime retirement income and includes benefits for you and your eligible survivors, as well as disability income if you become totally and permanently disabled before retirement.

Effective July 1, 2024, the COLA rate is 2.00% for those with a retirement date on or before July 1, 2023.

The 403(b) Plan is a defined contribution plan described under §403(b) of the Internal Revenue Code (IRC) and offers both pretax and Roth (after-tax) options. Future benefits from the 403(b) Plan will be comprised of contributions made to the 403(b) Plan plus investment earnings.

UCRP formula: (Age factor x UCRP Years of Service Credit) x HAPC = Basic Retirement Income (BRI), a monthly lifetime benefit.

The SPD is a plain language summary of important features in your retirement plan. Similar notice and disclosure requirements also apply if your employer sponsors a SEP or SIMPLE IRA plan. Here is a brief overview of the basic concepts the plan's disclosure documents must cover.

Retirement benefits are calculated based on a member's years of service credit, age at retirement, and final compensation (average salary for a defined period of employment). Retirement formulas vary based on: Classification (e.g., miscellaneous, safety, industrial, or peace officer/firefighter)

Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.

Social Security and Supplemental Security Income (SSI) benefits for more than 71 million Americans will increase 3.2 percent in 2024.

Is UC retirement plan a 401k? ›

UC offers comprehensive retirement benefits — including a choice between a pension and a standalone 401(k)-style account — along with savings programs and educational and counseling resources to help you plan for a secure and rewarding retirement. Learn more about your eligibility for retirement benefits.

By most estimates, you'll need between 60% and 100% of your final working years' income to maintain your lifestyle after retiring.

You are eligible for Full Benefits if you:

Are appointed to work in a retirement-eligible position at least 50% of the time for a year or more² or. Complete 1,000 hours in a retirement-eligible position within a rolling 12-month period (750 hours for represented lecturers)

SOCIAL SECURITY AND MEDICARE

You do not earn Social Security benefits through your University employment. However, all members hired or rehired on April 1, 1986, or later are required to pay 1.45 percent of all earnings for Medicare hospital insurance (Part A).

Required minimum distributions are taxable income in the year you receive them. Any taxable amount paid to you that exceeds the required minimum amount will be subject to the 20 percent federal withholding (30 percent for non-resident aliens) unless directly rolled over.

Please note: If you are vested in UCRP and take a refund of your plan accumulations, you will no longer be eligible for future retirement benefits. Retirement income: If you meet the criteria of your pension tier, you can elect to retire and receive a monthly lifetime benefit or, in some cases, a lump sum cashout.

If you are in the 1976 Tier and your UC employment is covered by Social Security, your basic retirement income is reduced slightly to account for the Social Security taxes that UC has paid on your behalf. If you retire before age 65, UCRP provides a monthly temporary supplement that restores the full benefit amount.

Plans also must provide a Summary of Benefits and Coverage (SBC) that accurately describes the benefits and coverage under the applicable plan. The SBC is a uniform template that uses clear, plain language to summarize key features of the plan, such as covered benefits, cost-sharing provisions and coverage limitations.

UC has a reciprocal retirement agreement with CalPERS, California Public Retirees System. Reciprocity applies to retirement benefits only; health benefits into retirement are determined by the provisions of the individual plans. Contact CalPERS to establish reciprocity at (800) 352-2238.

The Defined Contribution Plan (DCP) is a savings plan that allows participants to accumulate tax‐ sheltered money for retirement. Each pay period, 7.5% of salary will be deposited automatically in the Defined Contribution Plan and credited to an individual tax‐sheltered account.