If you’ve wondered if your contributions to the UC Retirement Plan (UCRP) will increase — as they have in the past few years — in July for fiscal year 2015, they will not.
University of California leadership recently confirmed that no additional increase in employee contributions is needed at this time. UC, as the employer, now contributes 14 percent of pay and faculty and staff contribute 7 to 9 percent, depending on their pension tier and/or collective bargaining agreement.
“The Post-Employment Benefits Task Force recommendations were a great step forward and put the plan on a solid path,” said Dwaine Duckett, vice president of human resources. “Contribution levels have been established for various segments of our participant populations.” UCRP contribution amounts are set by the regents or by collective bargaining agreement.
Because of the reforms the Post Employment Benefits Task Force recommended, employer and employee contributions to UCRP were increased following the regents' approval of the reforms in 2010. A new pension tier was also created that applies to all new hires, effective July 2013. The reforms established a long-term plan to improve the funded status of UCRP, which is now at 80 percent. Employee and employee contributions now cover the annual cost of the plan, so new increases are not required. Additional steps, such as internal borrowing, are also beginning to address the plan’s unfunded liability.
Find information about UCRP and your contributions here. Get more UC news at UCNet.
