Capital Accumulation Provision (CAP)

Capital Accumulation Provision (CAP)

January 27, 2014

On specific dates, eligible UCRP members have received a special allocation from UCRP deposited into a separate account within the Plan known as CAP. CAP allocations were made to offset the negative effects UC employees experienced due to the California budget crises. The allocation amounts were based on a percentage of eligible covered compensation and the member’s eligibility on the date of the allocation. There were two CAP rollout sessions.

CAP I:

  • 5% April 1, 1992
  • 2.5% July 1, 1992
  • 2.5% July 1, 1993
  • 5.26% November 1, 1993
  • 2.67% July 1, 1994
  • 100% Vested
  • Earns fixed 8.5% annual interest
  • At separation, options include a voluntary distribution (required taxes are withheld, IRS penalties may apply if under age 55), rollover to a qualified plan, including the UC 403(b) and 457(b), or a partial distribution and partial rollover; Distribution is required when UCRP benefits are activated (including lump sum cashout or UCRP disability income).

CAP II:

  • 3% April 1, 2002
  • 5% April 1, 2003
  • 100% Vested
  • Earns UCRP trust earnings, expected around 7.5% annual interest
  • At separation, options include a voluntary distribution (required taxes are withheld, IRS penalties may apply if under age 55), rollover to a qualified plan, including the UC 403(b) and 457(b), or a partial distribution and partial rollover; Distribution is required when UCRP benefits are activated (including lump sum cashout or UCRP disability income.)

For more details on allocations and options, see the UCRP Summary Plan Description; CAP website.

Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835

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