May 16, 2012
The UC Board of Regents today (May 16) approved several provisions related to the new tier of the UC Retirement Plan that was originally approved in December 2010.
These provisions clarify:
- That membership in the new pension tier is determined by the date the employee becomes eligible for UCRP membership; this clarifies that the new tier applies to career employees and means an employee hired prior to July 1, 2013 who becomes eligible for UCRP after July 1, 2013 will be in the new tier.
- That the new tier applies to all career hires after the effective date – both new hires and re-hires (former UC faculty and staff who return to UC employment after a break in service), and
- How the current tier and the new tier will work together for future retirees who have earned service in both tiers.
The UCRP 2013 tier is a pension plan for all eligible faculty and staff hired or rehired in an eligible appointment on or after July 1, 2013. The new tier raises the minimum retirement age from 50 to 55 and the retirement age for maximum pension benefits from 60 to 65 and eliminates the lump sum cashout and subsidized survivor benefits.
The amendments will not increase costs to the retirement plan, according to Segal Company, the Regents consulting actuary.
The amendments as they apply to represented employees are subject to collective bargaining.
For more information about the new 2013 tier, including frequently asked questions, visit the Future of UC Retirement website: http://ucrpfuture.universityofcalifornia.edu/.