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H T T P : / / U C S F H R . U C S F . E D U / I N D E X . P H P / B E N E F I T S /
University of California Retirement Plan (UCRP)
Understanding the Basics
Retirement
Make the Rest of Your Life
The Best of Your Life
Retirement
Target:
To maintain current lifestyle – need to have approximately 75 - 80% of your current salary in retirement
Retirement
The UC Road to Retirement
UC Retirement System
UC Retirement System consists of 2 programs
Primary Retirement benefit For employees eligible for full benefits:
UC Retirement Plan (UCRP) For eligible employees hired prior to 7/1/2016
2016 Retirement Choice Program For eligible employees hired or rehired 7/1/16 or later following a break in service
UC Retirement Savings Program Voluntary – all employees eligible
403(b) Plan 457(b) Plan DC Plan
Up to $18,500 or $24,500 to each plan
After tax
Pre tax
UC Retirement Plan (UCRP)
Defined Benefit Plan
Traditional pension plan Benefit based on a formula
Minimum Appointment Requirements Must be in an eligible appointment 50% or more – for 12 months or longer Must be eligible for full benefits
Contributions Required Employee Contributions Employer Contributions
UC Retirement Plan (UCRP)
UC Retirement Plan (UCRP)
3 UCRP Tiers 1976 Tier
Eligible employees hired prior to July 1, 2013 and no break in service
2013 Tier Eligible employees hired or rehired on July 1, 2013 and
later following a tier break in service
2016 Pension Choice Eligible employees hired or rehired on July 1, 2016 and later following a tier break in service
Vesting Requirement
5 years of UCRP service credit UCRP service credit accrues in proportion to
your percentage of time worked/paid, up to 100%
UCRP service credit is different from employment service tracked in HBS timekeeping system
You are ‘Vested’ when you accrue 5 full years
of UCRP service credit.
UC Retirement Plan (UCRP)
Eligible for a LIFETIME monthly benefit, or A Lump Sum Cashout in lieu of monthly benefit (for 1976
Tier) Do not need to be working at UC to apply for UCRP benefit
So what exactly does ‘vested’ mean?
UC Retirement Plan (UCRP)
Calculation of Basic Retirement Income
Lifetime monthly benefit based on the following 1. Age factor – based on age at the time of retirement For 1976 Tier, age factors increase from age 50 to age 60 For 2013 Tier/Pension Choice, age factors increase from age
55 to age 65 2. Years of UCRP service credit Accrues in direct proportion to % of time on pay status
3. HAPC (Highest Average Plan Compensation)* Average of 36 continuous months of highest base salary
* Reduced by SS offset of $133.00 for 1976 Tier members w/ SS
Your UCRP benefit is independent of the amount of UCRP contributions made.
UC Retirement Plan (UCRP)
UCRP Benefit Formula:
Calculate the Benefit Percentage:
(Age factor x UCRP service credit) = Benefit %
Multiply the Benefit % by Highest Average Plan Compensation* (Benefit % x HAPC*) = Basic Retirement Income (BRI)
∗ Reduced by a SS offset of $133.00 for 1976 Tier members coord. with SS
UC Retirement Plan (UCRP)
Example – 1976 Tier:
Employee’s age today is 52 Plans to retire at age 60 with 20.00 years of
UCRP service Current HAPC is $8,133
(Age factor x UCRP service credit) x HAPC* = BRI
* Reduced by a SS offset of $133.00 for 1976 Tier members coordinated with SS
UC Retirement Plan (UCRP)
Example – 1976 Tier:
Plans to retire at age 60 when the age factor will be .025 with 20.00 years of UCRP service Current monthly compensation and HAPC is $8,133
(Age factor x UCRP service credit) x HAPC* = BRI
(0.025 x 20) x ($8133 - $133) = $4,000 or 50% x $8,000 = $4,000.00
∗ Reduced by a SS offset of $133.00 for 1976 Tier members coordinated with SS
UC Retirement Plan (UCRP)
Example: Age 60 and 20 years of UCRP service provides a monthly benefit equal to 50% of member’s salary component (HAPC) – 1976 Tier
Lump Sum Cashout (LSC)
LSC is in lieu of monthly benefit
Available only with the 1976 Tier
Present-day value of projected lifetime basic retirement income, including COLAs
Waives health insurance and all other UCRP benefits (except CAP) May be subject to taxes and early distribution penalties unless rolled
over to another qualified plan
UC Retirement Plan (UCRP)
Example - 2013 Tier /2016 Pension Choice:
Employee’s age today is 52 Plans to retire at age 60 with 20.00 years of UCRP service 2013 Tier age factor for age 60 is 0.018 Current monthly compensation and HAPC is $8,133
(Age factor x UCRP service credit) x HAPC = BRI
UC Retirement Plan (UCRP)
Example – 2013 Tier / 2016 Pension Choice:
Plans to retire at age 60 when the age factor will be .018 with 20.00 years of UCRP service Current monthly compensation and HAPC is $8,133
(Age factor x UCRP service credit) x HAPC = BRI
(0.018 x 20) x $8133 = $2,928.00 or 36% x $8,133 = $2,928.00
UC Retirement Plan (UCRP)
Example: Age 60 and 20 years of UCRP service provides a monthly benefit equal to 36% of member’s salary component (HAPC)
2013 Tier / 2016 Pension Choice
Obtain Retirement Estimates on UCnet http://ucnet.universityofcalifornia.edu/
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University of California Retirement Plan (UCRP) Estimate Example
Example of Basic Retirement Income
UCRP Death Benefits
Postretirement Survivor Continuance “Eligible Survivor” defined by the Plan
Available under the 1976 Tier only No reduction to member’s benefit Paid as long as someone qualifies as an ‘Eligible Survivor”
25% of BRI for members coordinated with SS, or 50% of BRI for members non-coordinated with SS
UCRP Death Benefits
A Contingent Annuitant is a person you designate at “Retirement” to receive UCRP Benefits when you pass away: Contingent annuitant can be anyone
Can be eligible survivor or not In this example the Contingent Annuitant is a spouse
Reduces monthly benefit payable to you Options A, B, C and D Options based on life expectancy of both you and the contingent
annuitant
Irrevocable election at retirement
Example of Contingent Annuitant Options
Other UCRP Benefits
Capital Accumulation Provision (CAP) – 1976 Tier Disability Income Sick Leave Conversion for retirements within 120 days of
separation Retiree Cost of Living Adjustments Preretirement Survivor Income Lump Sum Death Benefit Postretirement Survivor Continuance – 1976 Tier
UC Retirement Plan (UCRP)
myucretirement .com
Generate your Personalized Retirement Roadmap today and see where you are on the road to
Retirement!
UC Retirement Plan (UCRP)
• Campus Employees call 415-476-1400 • Medical Center Employees call 800-888-8267
UC Retirement Plan (UCRP)
Thank You for Attending!
UCSF Human Resources Benefits Services 3333 California Street—Suite 330 Benefits Hotline: 415/476-1400 Fax: 415-476-2328 Email: [email protected]
