Retirement plan contributions increase this month for most employees
As previously announced, contribution rates to the UC Retirement Plan (UCRP) for both the university and staff will go up this month.
Starting July 1, faculty and staff in the 1976 Tier — generally those hired prior to July 1, 2013 — will pay 8 percent of pay, up from 6.5 percent. Employees in the 2013 Tier — those hired or rehired on or after July 1, 2013 — will continue to pay 7 percent.
The university will pay 14 percent of pay, up from 12 percent, for all employees.
The Board of Regents approved the 2014 increase in contributions in July 2013. This followed its adoption in 2010 of a series of measures to ensure the long-term viability of UC’s post-employment benefits. Currently, no additional increases in contributions are being considered.
Even with these changes, UC’s retirement benefits remain very attractive. In fact, very few public or private employers across the country offer a traditional pension and retiree health benefits.
Staff will see the increased contributions reflected in their regular paychecks for July earnings, paid between July 22 and Aug. 1, 2014, depending on the payroll cycle. Employee contributions are deducted on a pre-tax basis.
Provisions for union-represented employees are subject to collective bargaining where applicable; members should check their collective bargaining agreement for contribution rates.