FAQs Regarding the Reinstatement of UCRP Contributions
For your convenience, we have chosen four Questions and Answers from the UCOP website and reprinted them here. Additional information, along with more questions and answers, can be found under related links "The Future of the UC Retirement Plan."
Q. Does the Regents decision in March mean that I’ll have to contribute 16 percent of my pay to fund the retirement plan?
A. No, 16 percent of pay is the approximate total annual cost of funding your UCRP benefit. It is expected that both the University and its employees will share in the responsibility of funding the Plan.
Q. When employee contributions start will the money that now goes from my paycheck into the DC plan go to UCRP instead?
A. We expect that, as a first step, UC may re-direct these DC Plan contributions to the UCRP. At this time we do not know exactly when contributions will begin or exactly how much they will be for the University or the employees. These decisions will be made by The Regents when they consider the schedule for restarting contributions. The reinstatement of contributions also depends on the budget process and the collective bargaining process for represented employees.
Q. Why are The Regents targeting July 2007 as the date for reinstatement of contributions when the plan isn’t projected to dip below 100% funding until 2009?
A. The intent is to phase in contributions gradually so the financial impact on employees and the University is minimized. If The Regents wait until 2009 when the plan is projected to dip below 100% funding, a much higher level of contributions would be required.
Q. Is there any danger that UC will not be able to pay me the retirement benefits that I’ve earned?
A. There have been many news stories about pension plans around the country that have not been able to sustain the benefits promised to their employees. UC is dedicated to ensuring that all UC retirees—present and future—are able to receive the vested retirement benefits they earn while at the University. This is why UC takes prudent measures to ensure full funding of the UCRP.