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.
Monthly Retirement Income
The lifetime monthly benefit, called Basic Retirement Income (BRI) is a percentage of your average salary or HAPC. The percentage is based on your service credit and age at retirement.
For example, if you retire at age 60 (age factor of .0250) with 20 years of service credit, the benefit percentage is 50 percent (.0250 x 20). Your basic retirement income would be 50 percent of your HAPC.
You can choose to provide monthly lifetime benefit for a spouse, domestic partner or another person — called a contingent annuitant — by reducing your retirement benefit. The amount of the reduction varies according to the contingent annuitant option you choose and the average life expectancy of you and the contingent annuitant. See the UCRP Summary Plan Description for 1976 Tier Members for complete information.
You can estimate your retirement benefits and model the various contingent annuitant options by logging in to your personal account. (Choose "Retirement Estimates" under Retirement & Savings.)
If you choose monthly retirement income for your retirement benefit, you are also eligible for other benefits including:
- Survivor income: When you die, 25 percent of your basic retirement income is paid to your spouse or domestic partner (provided the marriage or domestic partnership existed for at least one year prior to your retirement and continuously until your death), of if none, to your eligible children, or if none, to your eligible dependent parents. This benefit is not optional and is built into the retirement benefit.
- Death benefits: When you die, UCRP pays a basic death payment of $7,500 to your beneficiary in addition to any monthly UCRP income that may be payable to eligible survivors or to the contingent annuitant.
- Disability benefits: If you become disabled while an active member (actively at work) and meet the eligibility requirements for UCRP disability income, you may apply for disability income. Complete details including service requirements, definitions, and how to apply can be found in the UCRP Summary Plan Description for 1976 Tier Members
Some 1976 Tier members are also eligible for:
- Capital Accumulation Payment: If you were a UCRP member in 1992, 1993, 1994, 2002 and/or 2003, you may have a separate account balance in UCRP known as the Capital Accumulation Payment (CAP). These accounts consist of money that UC allocated to eligible Plan members on various dates during those years to supplement other UCRP benefits. The allocations were based on a percentage of your covered compensation for a period prior to the allocation date. CAP balances earn interest at an annual percentage yield. You can see your CAP balances by signing in to your personal account online. For details on dates and percentages, see the UCRP Summary Plan Description for 1976 Tier Members.
- Retiree health insurance: You must have at least 10 years of service credit and meet other eligibility requirements at retirement to be eligible. More information.
Lump Sum Cashout
The lump sum cashout is a one-time payment of your projected lifetime basic retirement income.
In the cashout calculation, your basic retirement income is reduced by any offsets that apply and then multiplied by a lump sum cashout factor. This factor is based on your age and is derived from average life expectancy tables, projected cost-of-living increases, and the actuarial assumptions of the Plan.
The taxable portion of your lump sum cashout is eligible for direct rollover to a traditional IRA, a Roth IRA or to another employer plan that accepts rollovers, including UC's Retirement Savings Program plans.
If you choose a lump sum cashout you forfeit all other retirement, survivor and death benefits, as well as retiree insurance coverage.