June 25, 2013
As previously announced, contribution rates to the UC Retirement Plan (UCRP) for both the university and faculty and staff will go up next month.
Starting July 1, the university will pay 12 percent of pay, up from 10 percent, and contributions for faculty and staff will rise to 6.5 percent of pay, up from 5 percent. (Contributions for union-represented employees are subject to collective bargaining where applicable.)
The Board of Regents in 2010 adopted a series of measures as part of a carefully constructed, multi-pronged strategy to ensure the long-term viability of UCRP benefits and also to help reduce the $24 billion unfunded liability to UC’s retirement programs.
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 and retiree health benefits.
Faculty and staff will see the increased contributions reflected in their regular paychecks for July earnings, paid between July 17 and August 8, 2013 depending on the payroll cycle. Employee contributions are pre-tax.
For more information about UC’s strategy to protect retirement benefits, visit the Future of the UC Retirement website at http://ucrpfuture.universityofcalifornia.edu/