As previously announced by the UC Office of the President, contribution rates to the UC Retirement Plan (UCRP) for both the university and for faculty and staff will go up next month at the start of the 2014-15 fiscal year.
Starting July 1, the university will pay 14 percent of pay, up from 12 percent, for all employees.
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 at their current 7 percent rate.
The UC Board of Regents approved the 2014 increase in contributions in July, 2013. This followed the board's adoption in 2010 of a series of measures to ensure the longterm viability of UC’s post-employment benefits. Currently, no additional increases in contributions are being considered.
Employee contributions are deducted on a pre-tax basis. Faculty and staff will see the increased contributions reflected in their regular paychecks for July earnings, paid between July 22 and August 1, 2014, depending on the payroll cycle.
Provisions for union-represented employees are subject to collective bargaining where applicable; members should check their collective bargaining agreement for contribution rates.
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.
