DC Plan for Safe Harbor Participants

Safe Harbor participants contribute 7.5% of their wages, on a pretax basis, in lieu of contributing to Social Security. Your contributions begin on the first day of the eligible appointment. 

Your contributions to your DC Plan account are automatically invested in the UC Pathway Fund based on your date of birth and the year you turn 65. You may choose to direct contributions to any of the funds offered through the UC Retirement Savings Plan Fund Menu or other investment options.

To learn more about managing your account, please refer to the Safe Harbor guide or visit myUCretirement.com. To speak to a representative, call Fidelity^® Retirement Services toll-free at 1-866-682-7787, Monday through Friday (excluding New York Stock Exchange holidays), 5 a.m. to 9 p.m. (PT). Employees with a hearing or speech impairment can call 1-800-259-9743. 

As an employee of the University of California, you can also participate in the other plans in the UC Retirement Savings Program: the 403(b) Plan, 457(b) Plan, and DC Plan. These plans are not available to students who normally work fewer than 20 hours per week.

For additional information, visit myUCretirement.com or contact Fidelity Retirement Services at 1-866-682-7787.

The Internal Revenue Code permits participants to take a distribution from the DC Plan Pretax Account at age 59 ½ or after they’ve left UC employment — whichever is earliest.

This rule also applies to student employees who, because of a change in their course load, become exempt from plan participation but are still employed by UC in any wage-earning capacity. Also, participants who leave UC employment and request a distribution but are reemployed by UC before the distribution is paid may become ineligible to receive the distribution. You may take a full or partial distribution of your after-tax account (if any) at any time. 

If you leave UC employment, you may: 

• Keep your money in the Plan if your balance is at least $2,000; 
• Arrange for a direct rollover of your money to a traditional or Roth IRA or another employer plan that accepts rollovers; 
• Request a distribution to be paid directly to you; 
• Receive periodic payments from the Plan; or 
• Arrange to purchase an annuity through UC’s group insurance contract. 

Participants who leave UC employment and have a balance of less than $2,000 cannot leave their money in the Plan. Account balances of $1,000 or less will automatically be distributed at the end of the quarter to participants who have not provided distribution directions. Balances greater than $1,000 but less than $2,000 will be rolled over into an IRA in the participant’s name unless the participant provides distribution directions. A participant whose balance is defaulted to an IRA will be notified of the default and the name of the IRA custodian. It is important that you maintain your address records to assure delivery of your distribution. 

Taxable distributions, paid directly to you, are generally taxed as ordinary income in the year they are issued and may be subject to early distribution penalties if they are taken before age 59½.

For more information about the tax treatment and potential penalties of plan distributions, refer to the DC Plan Summary Plan Description or call Fidelity Retirement Services at 1-866-682-7787. Fidelity Retirement Services representatives are available Monday through Friday from 5 a.m. to 9 p.m. Pacific time.