August 20, 2010

Q&A: What is meant by “covered earnings”?

“Covered earnings” is the amount of employees’ pay eligible for calculation of retirement benefits. Typically, base pay comprises the bulk of covered earnings, although other forms of compensation are also considered as part of “covered earnings.” For more information, see the UCRP Summary Plan Description at http://atyourservice.ucop.edu/forms_pubs/spd/ucrpspdwss.pdf