Skip to content

UC provides for retirement security and employee choice

AFSCME leadership insists that new employees should be placed into a traditional pension plan, which forces employees who leave the university before their 5-year anniversary to forfeit UC’s contributions to retirement benefits.

UC knows a modern workforce expects flexibility. Recently hired employees in other bargaining units — as well as all non-represented employees — can choose a pension or a 401(k) style plan that allows employees to take UC’s contribution with them regardless of how long they are employed. This is called the Savings Choice Plan.

The pension is strong and stable

The status of the UC’s pension has been misrepresented in an apparent attempt to frighten long-time employees. Suggestions that UC wants to eliminate the pension or that the pension fund won’t be stable unless everyone is placed into it are untrue.

Giving new employees a choice does not affect the pension benefits of long-time employees. Current employees in the pension will see no change in their benefits.

Savings choice pie chartGenerous, highly sought-after retirement benefits are an important part of UC’s competitive compensation package. UC believes all employees should have a choice of how to plan for retirement. And newly hired employees seem to agree — 37% of recent hires among unrepresented employees as well as new hires in represented units with retirement choice have decided the Savings Choice Plan is a better fit for their families.

Why shouldn’t newly hired AFSCME represented employees have a choice in how they plan for retirement?

Copyright © Regents of the University of California  |  Terms of use