- Retirees
- Benefits for retirees
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UCRP pension benefits: 2013 Tier
UCRP pension benefits: 2013 Tier
For employees hired July 1, 2013 – June 30, 2016
As a member of the UC Retirement Plan (UCRP) 2013 Tier, you can elect to retire and receive benefits at any time after you become eligible — that is, when you reach age 55 and leave UC employment with at least five years of service credit. When you retire, you may choose a lifetime monthly benefit. You may also be eligible for retiree health benefits.
How do I accrue pension benefits?
While employed with UC, you make pretax contributions (7% of your covered compensation) and earn service credit toward a lifelong pension benefit. Your pension is based on a formula that factors in your time at UC, your age at retirement and your highest salary (averaged over three years).
The calculation of basic retirement income is a two-step process:
1. Calculate the benefit percentage (up to 100%): Service credit x age factor
The age factor is based on your age in years and months on the date of your retirement.
2. Multiply the benefit percentage by your highest average plan compensation (HAPC).
HAPC is the member’s average monthly eligible salary (also called “covered compensation,” because not all forms of compensation are included in your HAPC) calculated over the highest 36 consecutive month (skipping unpaid leaves) average of the member’s eligible compensation.
Example: You retire at 65 (which has an age factor of .0250) with 20 years of service. Your HAPC is $6,000.
- Benefit percentage: .0250 x 20 = 50%
- Basic retirement income: 50.0% of $6,000 = $3,000 per month
See the UCRP Summary Plan Description for 2013 Tier Members (PDF) for complete information, including a chart showing your age factor depending on when you retire.
When am I eligible for (or vested in) my retirement benefits?
You must earn five or more years of UCRP service credit to be “vested” — that means that you have a non-forfeitable right to receive UCRP retirement benefits upon leaving UC and reaching retirement age.
If you leave UC before you are “vested,” you are entitled to a refund of your UCRP contributions, plus accumulated interest.
Other UCRP benefits
See the UCRP Summary plan description for 2013 Tier Benefits (PDF) and the additional resources below for complete information on your UCRP benefits, including:
- UCRP disability benefits: Also read Your Guide to UC Disability Benefits.
- Benefits for contingent annuitants: You can estimate your retirement benefits and model your various contingent annuitant options by logging in to your UC Retirement At Your Service (UCRAYS) account.
Help and guidance
Represented by a union?
Your benefits are negotiated between UC and your union. See your bargaining unit’s contract for details.