At their meeting on Nov. 16, 2023, the UC Board of Regents approved a proposal by President Michael V. Drake, M.D., designed to improve the long-term financial health of the UC Retirement Plan (UCRP).
Under UC’s newly approved model, UCRP is projected to be 100% funded by 2048. This is eight years earlier than projected under the previous model, due to a combination of increases in UC’s employer contributions and annual transfers from the Short Term Investment Pool (STIP) into UCRP. The plan does not raise employee contributions to UCRP.
Specifically, the approved plan increases the University/employer contributions to the UCRP by 0.5% per year, from 14% to 18% of payroll, and transfers $3 billion to UCRP from the Short Term Investment Pool (STIP) over time.
Frequently asked questions
Are employee contributions increasing under the new plan?
No, the President’s approved plan does not include increased contributions from employees to the UCRP.
When will UC reach full funding for the UCRP?
Under the approved plan, the UCRP is projected to reach full funding in 2048.
How will UC reach full funding for the UCRP?
The President’s approved plan increases the University/employer contribution rates to the UCRP from 14% to 18% of payroll by 0.5 percent per year, and transfers $3 billion to UCRP from the Short Term Investment Pool (STIP) over time.