TO: Campus Community
FR: Jim Corkill, Director of Business & Financial Services
Cynthia Seneriz (on behalf of Tricia Hiemstra, Director of Human Resources)
RE: Increase to UCRP Contribution Rates July 1, 2014
This is to remind you that, as previously announced, contribution rates to the UC Retirement Plan (UCRP) for both the university and faculty and staff in the 1976 Tier—those in a UCRP-eligible position prior to July 1, 2013—will go up next month.
Starting July 1, the university will pay 14 percent of pay, up from 12 percent, and contributions for faculty and staff will rise to 8 percent of pay, up from 6.5 percent.
Faculty and staff in the 2013 Tier—those hired or rehired on or after July 1, 2013—will continue to contribute 7 percent of pay.
Contributions and tier membership for union-represented employees are subject to collective bargaining where applicable and may be different. Union members should check their collective bargaining agreement for contribution rates.
As you know, the Board of Regents approved a number of changes in 2010 as part of a carefully constructed, multi-pronged strategy to ensure the long-term viability of UC’s post-employment benefits. In July 2013, the regents subsequently approved the 2014 increase in contributions. No additional increases have been approved.
Even with these changes, UC’s retirement benefits remain very attractive. In fact, very few public and private employers across the country offer a traditional pension and retiree health benefits. At UC, we know that our faculty and staff value these benefits, and we are working diligently to sustain them.
You will see the increased contributions reflected in your regular paychecks after July 1. Please check with your department payroll representative if you need specific dates on when you can expect to see a change in UCRP contribution rates. Employee contributions are deducted on a pre-tax basis.