- Retirees
- Benefits for retirees
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UC Retirement Choice (UCRP 2016 Tier)
UC Retirement Choice (UCRP 2016 Tier)
For employees hired July 1, 2016, and after
If you were eligible for the UC Retirement Choice program while you worked for UC, you enrolled in Pension Choice or Savings Choice. Learn more about the retirement benefits you’re eligible for, depending on your choice.
Understanding your benefits
Whichever option you chose, once you enrolled:
- Required pretax contributions of 7% of your eligible pay (up to the IRS maximum) were deducted from your paycheck; your contributions belong to you.
- UC contributed to your retirement benefits.
- You earned 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 PEPRA maximum).
UC also contributes toward a 401(k)-style supplemental account 401(k)-style supplemental account for designated faculty, and for all other eligible staff and academic appointees with eligible pay above PEPRA 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.
Your contributions to your supplemental account will vest immediately. UC’s contributions will vest after you have earned five years of UCRP service credit. Distributions are governed by plan rules.
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.
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 BenefitsPDF.
The maximum salary that counts toward your pension benefits each Plan year is consistent with the maximum on pensionable earnings under the California Public Employees’ Pension Reform Act (PEPRA). This maximum also applies to other California public pension plans and is reviewed annually and may be adjusted.
For the 2023 Plan year (from July 1, 2023, to June 30, 2024), the maximum is $146,042. For the 2024 Plan year (from July 1, 2024, to June 30, 2025), the maximum is $151,446.
The maximum salary that counts toward your pension benefits each Plan year is consistent with the maximum on pensionable earnings under PEPRA. This maximum also applies to other California public pension plans and is reviewed annually and may be adjusted.
For the 2023 Plan year (from July 1, 2023, to June 30, 2024), the maximum is $146,042. For the 2024 Plan year (from July 1, 2024, to June 30, 2025), the maximum is $151,446.
In general, you are eligible for the faculty program if you are an academic appointee in one of the following groups. All others are eligible for the staff program.
- Ladder-rank faculty and equivalent titles (Professorial and Equivalent titles, which include Agronomists, Astronomers, Clinical Professor of Dentistry [over 50%] and Supervisor of Physical Ed)
- Professor in Residence series
- Professor of Clinical (X) series
- Acting full, associate and assistant professors
- Lecturers/Senior Lecturers (full-time) with Security of Employment or Potential Security of Employment (excluding UC Hastings Lecturers/ Senior Lecturers)
- Adjunct Professor series
- Health Science Clinical Professor series
- Librarians covered by the Professional Librarians Unit (LX Unit) and Non-Senate Instructional/UC-AFT (IX), due to specific provisions within their collective bargaining agreement
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.