As previously announced, contribution rates to the UC Retirement Plan (UCRP) for both the University and for employees in the 1976 Tier—those in a UCRP-eligible position prior to July 1, 2013—will go up in July 2014.
Starting July 1, 2014, the University will pay the 14.50 percent contribution of pay, up from 12.65 percent, and contributions for many employees will rise to 8 percent of pay on a pre-tax basis, up from 6.5 percent. Academic and staff employees in the 2013 Tier—those hired or rehired on or after July 1, 2013—will continue to contribute 7 percent of pay, also on a pre-tax basis, while the University’s contribution will also be 14.50 percent for the 2013 Tier members.
The Board of Regents approved a number of changes in 2010 as part of a carefully constructed, multi-pronged strategy to ensure the long-term viability of UC’s post-employment benefits. In July 2013, the Regents subsequently approved the 2014 increase in contributions. No additional increases have been approved.
Even with these changes, UC’s retirement benefits remain very attractive. In fact, very few public and private employers across the country offer a traditional pension plan and retiree health benefits. UC understands that its faculty and staff members value these benefits, and it is working diligently to sustain them.
Employees will see the increased contributions reflected in their regular paychecks starting with the August 1, 2014, paydate if paid monthly and with the July 16, 2014, paydate if paid bi-weekly.
Contributions and tier membership for union-represented employees are subject to the terms of the applicable collective bargaining agreements and contribution rates may vary from the above information. Employees who are bargaining unit members should check their collective bargaining agreement.
For more information about UC’s retirement benefits, visit UCnet at http://ucnet.universityofcalifornia.edu/compensation-and-benefits/retirement-benefits/.
Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835
