- Employee benefits
- Retirement
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UC Retirement Plan 1976 Tier
UC Retirement Plan 1976 Tier
For employees hired before July 1, 2013
As a UCRP 1976 Tier member, you can elect to retire and receive benefits at any time after you become eligible — that is, when you reach age 50 and leave UC employment with at least five years of service credit. When you retire, you may choose a lifetime monthly benefit or a lump sum cashout.
How do I accrue pension benefits?
As a UCRP member, you earn service credit toward a pension benefit based on the time you work in an eligible position. Your pension is based on a formula that factors in your time at UC, your age at retirement and your highest salary (averaged over three years).
At retirement, you may elect monthly lifetime income or opt for a lump sum cashout. Electing a lump sum cashout means forfeiting your eligibility for retiree insurance coverage and survivor/contingent annuitant benefits.
The calculation of basic retirement income is a two-step process:
1. Calculate the benefit percentage (up to 100%): Service credit x age factor
The age factor is based on your age in complete years and months on the date of your retirement.
2. Multiply the benefit percentage by your highest average plan compensation (HAPC)
HAPC is the member’s average monthly eligible salary (also called “covered compensation,” because not all forms of compensation are included in your HAPC) calculated over the highest 36 continuous months preceding retirement. For members paying into Social Security, HAPC is reduced by $133 to account for the University’s contributions to Social Security.
Example: You retire at 60 (which has an age factor of .0250) with 20 years of service. Your HAPC is $4,133.
- Benefit percentage: .0250 x 20 = 50%
- Basic retirement income: 50.0% of ($4,133–$133=$4,000) = $2,000 per month
See the UCRP Summary Plan Description for 1976 Tier Members (PDF) for complete information, including a chart showing your age factor depending on when you retire.
The lump sum cashout is a one-time payment of your projected lifetime basic retirement income.
If you choose a lump sum cashout you forfeit all other retirement, survivor and death benefits, as well as retiree insurance coverage.
When am I eligible for (or vested in) my retirement benefits?
You must earn five or more years of UCRP service credit to be “vested” — that means that you have a non-forfeitable right to receive UCRP retirement benefits upon leaving UC and reaching retirement age.
Other UCRP benefits
See the UCRP Summary Plan Description for 1976 Tier Members (PDF) and the additional resources below for complete information on your UCRP benefits, including:
- UCRP disability benefits: Also read Your Guide to UC Disability Benefits.
- Capital Accumulation Payment: If you have a CAP balance, you can see it by logging in to your UC Retirement At Your Service (UCRAYS) account.
- Benefits for survivors: Also read Your Guide to Survivor and Beneficiary Benefits.
- Benefits for contingent annuitants: You can estimate your retirement benefits and model your various contingent annuitant options by logging in to your UC Retirement At Your Service (UCRAYS) account.
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- Affordable Care Act
- Behavioral health benefits
- COBRA
- Coverage for COVID-19 tests
- Emergency resources from UC’s benefit plans
- Health coverage outside the U.S.
- Premium assistance under Medicaid and the Children’s Health Insurance Program (CHIP)
- Resolving disputes
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- A new employee
- Adding a family member to your insurance
- Adopting a child
- Applying for disability
- Being laid off
- Changing jobs within UC
- Changing your address
- Enrolling in Medicare
- Establishing a domestic partnership
- Getting married
- Going on military leave
- Having a baby
- Laid off temporarily
- Leaving UC employment
- Lo despiden
- Lo despiden temporalmente
- Preparing for retirement
- Removing a family member from insurance
- Taking a furlough
- Taking a leave of absence
- Taking a sabbatical
- Taking paid leave
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Help and guidance
Represented by a union?
Your benefits are negotiated between UC and your union. See your bargaining unit’s contract for details.