Regents Take Action to Reinstate Contributions to UCRP
DEANS, DIRECTORS, DEPARTMENT CHAIRS & ADMINISTRATIVE OFFICERS
Re: Contributions to the UC Retirement Plan (UCRP)
On March 16, 2006, The UC Regents approved a series of actions aimed at ensuring the stability of the UC Retirement Plan (UCRP).
The Regents approved:
- A targeted funding level of 100 percent over the long term and for University and UCRP member contributions at the rates necessary to maintain that level within a range of 95 percent to 110 percent.
- A multi-year contribution strategy under which contribution rates will increase gradually over time to 16 percent of covered earnings, based on UCRP's current normal cost.
- The resumption of UCRP contributions effective July 2007, subject to funding and completion of the budget process.
In order to help ease the financial impact for UC employees, The Regents asked for a July 2007 start date and a multi-year contribution strategy in which contribution rates will increase gradually over time. Both the University and UC employees will be asked to make contributions for the ongoing funding of the UCRP for the first time since the early 1990s.
Keeping the UCRP fully funded ensures future retirement benefits for all UCRP members and avoids the funding issues and problems that have affected so many other defined benefit pension plans across the nation.
The ongoing cost to fund the UCRP is 16 percent of the covered earnings of each Plan member. The Regents are expected to hear specific recommendations as to how costs will be shared between active UCRP members and the University, possibly as soon as the May 2006 Regents meeting.
For represented employees, the reinstatement of contributions to the UCRP is subject to the collective bargaining process. Reinstatement of contributions is also subject to the availability of funding and completion of the state budget process.
To keep informed, visit UC's special website, "The Future of the UC Retirement Plan," which is updated with the latest information. The site is also accessible via the At Your Service website.
Campus Human Resources, Personnel Services
Phone: (310) 794-3147 | Fax: (310) 794-0865
UCLA Healthcare Human Resources
Phone: (310) 794-0500 | Fax: (310) 794-0620