- Employee benefits
- Retirement
- UC Retirement Choice (UCRP 2016 Tier)
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UC Retirement Choice Program (not subject to PEPRA)
UC Retirement Choice (2016 Tier) if you’re not subject to PEPRA
For rehired, newly eligible and former CalPERS-covered faculty and staff who are not subject to the maximum on pensionable earnings under the California Public Employees’ Pension Reform Act (PEPRA).
When it comes to choosing your primary (required) retirement benefits, you have two options — Pension Choice or Savings Choice. The sooner you enroll, the sooner you start receiving UC contributions (and service credit under Pension Choice).
Both options are designed to provide retirement income in addition to Social Security benefits and any retirement savings you may have.
If you enroll in Savings Choice, you will have a “second choice window” to switch from Savings Choice to Pension Choice after five years. Enrollment in Pension Choice cannot be revoked. Whether you select Pension Choice, are enrolled in Pension Choice after 90 days, or switch to Pension Choice during your second choice window, you may not change your participation from Pension Choice to Savings Choice.
Eligibility
If you worked for UC before July 1, 2016, or you are a CalPERS “Classic Member,” some provisions of the UC Retirement Choice Program may not apply to you and your retirement benefits choices will be a bit different. You are eligible for the choice of primary retirement benefits described below if you:
- Are a prior active member of UCRP who was rehired on or after July 1, 2016 into an eligible faculty or career staff appointment, after a qualified break in UC service (between one and two months);
- Were hired by UC before July 1, 2016 and became eligible for Retirement Choice benefits on or after that date; or
- Were hired by UC on or after July 1, 2016 and are classified as a “Classic Member” under CalPERS eligible for reciprocity with UC.
Please note: If your original UCRP entry date was before July 1, 1994, and you are rehired in an eligible appointment, you will automatically become an active member of UCRP and will not be eligible to choose between Pension Choice and Savings Choice.
If you have questions about your eligibility, please contact the UC Retirement Administration Service Center at (800) 888-8267. New UC employees who were classified as a “Classic Member” under CalPERS and are also eligible for reciprocity with UC need to self-identify.
If you’re represented by a union, your retirement benefits are governed by your union’s contract with UC. As a result, your benefits may be different than the benefits outlined here. Please refer to your collective bargaining agreement for details.
Compare your options
Whichever option you choose, once you enroll:
- Required pretax contributions of 7% of your eligible pay (up to the IRS maximum) will be deducted from your paycheck; your contributions belong to you.
- UC will contribute to your retirement benefits.
- You’ll earn service credit toward UC’s retiree health benefits.
Read A Complete Guide to Your UC Retirement Benefits (PDF) for details and see below to make sure you understand a few very important differences.
Pension Choice
Earn service credit toward a lifelong pension benefit.
Your pension, through the UC Retirement Plan (UCRP), is based on a formula that factors in your service credit (your time at UC in an eligible position), your age at retirement and your highest salary, (averaged over three years, up to the IRS maximum).
Savings Choice
Build retirement savings in a 401(k)-style account.
Your contributions (7% of eligible pay), contributions from UC (8% of eligible pay, up to the IRS maximum) and any investment earnings accumulate in a tax-deferred retirement account similar to a 401(k).
You choose your investments from a menu of available funds, and you assume the investment risk. UC provides educational resources to help you plan.
Your account balance when you retire is based on contributions from you and UC, plus investment performance.
Pension Choice
You will “vest” in UCRP (become eligible to receive pension benefits, subject to plan rules) once you have earned five years of UCRP service credit. You begin to earn service credit for your time worked when you start making contributions.
Savings Choice:
Your contributions to your account will vest immediately. UC’s contributions will vest after one year. Distributions are governed by plan rules.
Pension Choice
UCRP offers disability and survivor benefits, including continued UC health and welfare benefits, for you and for your survivor(s), depending on eligibility rules. You can choose someone to receive lifetime monthly income upon your death.
Savings Choice
Savings Choice does not include disability or survivor benefits, or the continuation of UC health and welfare coverage often available with such benefits, as provided under UCRP. You can designate a beneficiary for your account balance and opt for employee-paid disability and/or supplemental life insurance group coverage.
Pension Choice
No. Whether you actively enroll or default into Pension Choice, you may not switch to Savings Choice.
Savings Choice
Yes. After five years, you will have an opportunity (“second choice window”) to switch to Pension Choice prospectively.
Consider Pension Choice if you:
Want predictable and secure retirement income payments.
Expect to work for UC for most of your career (and at least five years).
Want the protections offered by the UC Retirement Plan, such as the option to provide health benefits and a secure income for your survivor and income and health benefits if you become disabled.
Consider Savings Choice if you:
Want a portable retirement benefit (vested after one year) you can roll over into an IRA or another employer’s retirement plan if you leave UC.
Don’t know how long you’ll be at UC, and prefer the option to switch to Pension Choice later.
Are comfortable choosing and managing your retirement investments.
Making your choice
The sooner you decide which option is best for you — Pension Choice or Savings Choice — the sooner you start receiving UC contributions and service credit. You have 90 days from your retirement option eligibility date to choose a primary retirement benefit; your enrollment window closes once you submit a choice. If you don’t choose a primary retirement option, you automatically will be enrolled in Pension Choice at the end of the 90-day period.
Once you’ve decided which option is best for you, making your choice is fast and easy.
See step-by-step instructions (PDF) for how to enroll.
- Make your choice online at myUCretirement.com/choose You’ll get a quick refresher on the options and how they compare.
- Register and log in when prompted. Then select the option you’ve decided works best for you.
- You’ll receive a confirmation statement reflecting your choice.
- Your contributions will begin to be deducted from your paycheck following your choice (usually within one to two pay periods).
Definitions
See below for definitions of some of the terms used on this page.
Retirement benefits are calculated based on “eligible pay” for the Plan year (from July 1 to June 30), which does not include certain types of compensation, such as:
- Pay that exceeds the full-time rate or established base pay rates for regular, normal positions;
- Overtime pay (unless for compensatory time off);
- Pay that exceeds the base salary (X+X’) under the Health Sciences Compensation Plan.
For a list of types of compensation that are not considered “eligible pay” when calculating retirement benefits, see A Complete Guide to Your UC Retirement Benefits PDF.
The IRS sets a dollar maximum for annual earnings for the Plan year upon which retirement benefits and contributions may be based. This maximum is also reviewed and may be adjusted annually. For the 2024 Plan year, this maximum is $345,000.
Pension Choice is a defined benefit plan (with a supplemental account for certain employees). Your benefit from the pension component is determined by a formula based on age, service and pay, not based on contributions made by you and UC.
Employer and employee contribution rates to UCRP are set periodically by the UC Regents. Employee contributions and the provisions of Pension Choice and Savings Choice are subject to collective bargaining for represented employees. Please refer to the appropriate collective bargaining agreement, as benefits and other provisions may vary.
Manage your benefits
Make your choice: the sooner the better!
If you miss the 90-day deadline, you’ll be enrolled in Pension Choice with no option to switch later. And you don’t receive UC contributions or service credit until you enroll or you default into Pension Choice, so every day counts.
Resources to help you choose
New to UC?
Welcome! Check out our benefits roadmap for new employees and attend a UCPath benefits orientation webinar.
Represented by a union?
Your benefits are negotiated between UC and your union. See your bargaining unit’s contract for details.