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Understanding service credit

Service credit, the accounting of how long you’ve worked for UC, is referred to in a few different ways at UC. The terms and their meanings depend on how service credit is earned and what it counts toward.

Here’s an overview of some terms you may hear and what they mean, and answers to some frequently asked questions about UCRP service credit.

On this page:

Employment service credit

How it’s earned and tracked: UCPath tracks employment service, crediting employees for each month they work 50% or more of full-time. Employment service can be earned through “Safe Harbor” appointments (such as floater, student or per diem) as well as through appointments that are eligible for full retirement benefits.

Counts toward: Seniority and accrual of vacation, sick leave and/or PTO, as defined by the policy or contract that applies to the employee.

UC Retirement Plan (UCRP) service credit

How it’s earned and tracked: Earned as a member of UCRP as a percentage of time worked, and tracked by UC Retirement At Your Service (UCRAYS).

Counts toward:

  • Eligibility for (known as “vesting in”) UCRP benefits
  • Calculation of UCRP retirement, survivor and disability benefits
  • Eligibility for retiree health benefits, and the amount of UC’s contribution toward their cost

Savings Choice service credit

How it’s earned and tracked: Earned as a participant in Savings Choice as a percentage of time worked, and tracked by UC Retirement At Your Service (UCRAYS).

Counts toward:

  • Eligibility for retiree health benefits, and the amount of UC’s contribution to their cost
  • Eligibility for (known as “vesting in”) UCRP benefits for Savings Choice participants who switch to Pension Choice

Retiree health service credit

How it’s earned and tracked: Earned as a member of UCRP or a participant in Savings Choice as a percentage of time worked, and tracked by UC Retirement At Your Service (UCRAYS).

Counts toward: Eligibility for retiree health benefits, and the amount of UC’s contribution to their cost

UCRP vesting credit

How it’s earned and tracked:

  • Earned as a member of UCRP or a participant in Savings Choice as a percentage of time worked, and tracked by UC Retirement At Your Service (UCRAYS).
  • Earned through service in another eligible system, such as CalPERS or CalSTRS; requires coordination between UC and that system to establish credit with UC

Counts toward: Eligibility for (known as “vesting in”) UCRP benefits

Frequently asked questions about UCRP service credit

Q: How does my UCRP service credit affect my retirement income?

Your UCRP pension is based on a formula that factors in your UCRP service credit, your age at retirement and your highest salary (averaged over three years, up to any income limits that apply to you). The exact formula depends on when you became a member of UCRP.

Q: Is my UCRP service credit the same as my years of service with UC, shown on my UCPath account dashboard?

Your UCPath account reflects how many years and months you have been employed with UC. This is not always the same as your UCRP service credit, which you can find in your UCRAYS account. Service credit is earned once you have become a UCRP member, for the time you receive covered compensation (or UCRP-eligible pay) for an eligible appointment.

For example, if you work for UC in a position that isn’t eligible for UCRP benefits, your time in that position will not count toward your UCRP service credit. As a UCRP member, you earn service credit during a paid leave (since that’s considered UCRP-eligible pay), but not during an unpaid leave.

The maximum that you can earn for a year of full-time work is one year of service credit — you don’t get additional service credit if you work overtime. Part-time or variable-time work results in a proportionate amount of service credit. For example, if you work 50% time for one year, you receive one-half year of service credit.

Q: Can I purchase service credit for time I was on leave?

If you took an eligible unpaid or partially paid leave of absence for a minimum of 4 consecutive weeks, you may be eligible to purchase UCRP service credit for that time. A service credit purchase must be completed while you are actively employed. You cannot purchase service credit after separating from UCRP employment or retiring.

Savings Choice participants may not purchase service credit toward retiree health eligibility.

Q: What if I think the UCRP service credit shown on UCRAYS or in my retirement profile is incorrect?

There are a few situations that may result in underreporting of your service credit, such as military leave or a temporary reduction in time. If you think your service credit may not be accurate, it’s a good idea to submit a request for an inquiry as soon as possible so you don’t risk delays in your retirement process later. An experienced benefits analyst with RASC will research and confirm that you have been awarded all the service credit you earned while actively employed.

If a verification is completed after your UCRP retirement date and uncovers an error, you will receive a “post-retirement adjustment” to your retirement benefit. You will be repaid for any retirement benefits you are owed or made aware of any overpayment that must be repaid to UC.

Employee benefits

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Welcome! Check out our benefits roadmap for new employees and attend a UCPath benefits orientation webinar.

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